Greetings Real Estate Investors!
We hope you all are having a great summer and getting out to enjoy some of the fruits of your success. Today we want to take a look at the Miami Herald’s recent 2017 Miami Real Estate Study.
The Herald has been doing this in some form for many years but set upon a more formal direction over the past three years. They survey “100 of the area’s top brokers, agents and analysts” to get a pulse on the health of the overall market as well as some specific segments. The report is very thorough and we would suggest you read the full report but for the purposes of real estate investment and income properties we want to highlight some of the key findings and give you our take on them as a member of the largest property management franchise in the country.
Miami Beach is Hot…but maybe not a great investment
Both literally and in terms of real estate the most famous part of our city topped the charts on most surveys in terms of popularity but also topped out on being overpriced. This is a normal combination but not one that is particularly attractive to investors who want low entry costs to improve their bottom line. Our recommendation: Go a little bit north into North Beach, Surfside and even up to Hollywood Beach, you will still get the draw of the waves but the prices will be lower.
One of the main factors that influence the amount of rent landlords can charge is of course the demand by renters. This demand has been incredibly high over the past several years since the housing crisis as most people have been unable to qualify for a home. This study seems to show that the trend is changing and that more people want to own. This is also reflected in high inventory which generally will depress prices and create more of a buyer’s market. Our recommendation: Don’t put too much stress on increasing rents this year, as long as a you have a good tenant throw them a bone by “rewarding” them with no rent increase for a year. The bonus? Now is a great time to but your next investment property.
Little Havana is the Next Big Thing
Next time you are in Downtown take a short drive down SW 8 St and you will see a few brave develops who have started to build low rises in the neighborhoods of Little Havana. The study reflects what we have been thinking for a while which is that Little Havana is going to explode. It is close enough to Downtown to attract those who are working in the major work centers and it is cheap enough that you can buy multiple units for the same price as getting one unit in other areas of Miami. Our recommendation: Buy at least one unit in the area this year to get your feet wet because the water is warm and you might want to jump in!
Homestead is still a Great Investment
The most undervalued market in the survey is Homestead and it is something we have been consistent in telling clients for years now. While it is not the steal it was a decade ago it is still probably the most bang for your buck in the entire market when you factor in the new construction, low entry cost and access to highways. Our recommendation: You should have a few properties down here within the same general area, that way when you take a trip down the Turnpike you can check them all out quickly.
RPM Miami is Still the Best Property Management Company in Miami
Ok well this wasn’t exactly part of the survey but it should have been. We handle more properties in one day than most property managers have had in their portfolio since the opened. We have the experience and expertise to keep your investment running smoothly and generating income and we want your business. So if you are not already one of our satisfied clients give us a call at 305-517-3900 you can meet the team and get on track for higher returns!
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