It is not news that in recent years Miami has exploded onto the global stage. What was once primarily a place for northerners and foreigners to spend their winters has become an internationally recognized destination for people to not only visit but live, work and raise a family. This has contributed to a continued growth in the value of real estate over the last two decades. Even after the boom and bust of the the late 2000’s real estate values have quickly returned to the previous levels and now continue to rise to new heights.
The factors that make Miami such a desirable destination to live and play are some of the same reasons that make it such a great place to buy investment real estate. But there are a couple of other reasons that you may not have considered. Lets take a look at all of the factors that make Miami the best city to buy investment real estate
#4 Solid Construction Means Your Investment Will Last Longer
Almost every home in Miami is made of Concrete Block Construction as opposed to wooden frame that is common in the rest of the country. This incredibly durable material makes homes solid enough to withstand anything nature, or even bad tenants, can throw at it. In addition to being resistant to storms the strength of the construciton adds years to the life of the home. Concrete block also has another benefit of being highly fire resistant, so while a wooden frame home may burn to the ground relatively quickly, it would take a concrete block home substantially longer, so long in fact that the fire department can extinguish most fires with only minor damage to the property. Everybody knows the story of the Three Little Pigs, in Miami you can be the smart pig with the concrete home!
#3 Major Natural Disasters are Predictable and Rare
Time to talk about the big one, or rather the lack of a big one. Meaning a lack of a major unpredictable natural disaster that can cause significant property damage. The Northeast has blizzards, snow and ice which all damage a property and require extensive winterization procedures that homes in Miami do not have to address. California has earthquakes with no warning which can literally topple a property in a matter of moments. The Midwest has tornadoes that also have no warning and indiscriminately destroy homes on one side of the street and leave others untouched.
Of course we have hurricanes but there are several mitigating factors that make these disasters easy to manage, especially for investment property owners. Hurricanes come with substantial advance warning and only require minor preparations to secure a property. The main inconvenience from hurricanes is actually for the residents or tenants if power is knocked out, but this has almost no long term affect on a property itself. Additionally a major storm has not had a direct hit on Miami since Andrew over 20 years ago in 1992.
#2 The Most Common Jobs Produce More Renters
Although this may not be a great selling point to get big money earners to move to Miami City-Data.com shows that the most common industry in Miami is Tourism, followed by Hospitality and Real Estate. This means that the vast majority of the workforce are not affluent enough to be able to purchase homes, which in turn leads to a large population of renters. But there is a very wealthy side to Miami which leads to a competition to move up the ranks and have nicer homes. But because the income cannot keep up with the desire many people will rent homes to have them as a status symbol as opposed to purchasing. Take a look at the job industry report at this link…http://www.city-data.com/us-cities/The-South/Miami-Economy.html
#1 The Best for Last…The Exploding Population Growth!
In December of last year the US Census reported that Florida passed New York to become the third most populous state in the country! That’s right New York! Forget about it! Check out the article here…http://www.census.gov/newsroom/press-releases/2014/cb14-232.html . And thanks to our friends in the A/C business (without whom Miami would admittedly be a vast wasteland) the population in the Southern Part of the Country is exploding!!! Check that article out here and pay close attention to the graphic…http://porch.com/advice/hvac-and-southern-population/ More people equals more need for housing which results in higher rents and higher home values. This is by far the best reason to invest in Miami. You could invest in other parts of the South and get some of the same benefits of population growth but then you would miss out on the three other incredible benefits.
The bottom line is this: If you buy in Investment Real Estate in Miami you are going to have…
– Property that appreciates because of increasing demand
– A steady supply of tenants that lead to ever-increasing rents
– The confidence that your property will not be destroyed by mother nature
– Solid property that will last for many years to come
– An investment that is much better than the rest of the country
And of course because you are a smart business person and not just somebody who wants to have a couple of rental properties on the side, you are going to find a property management company that can professionally manage your property and ensure that your investment produces the highest possible return of your hard earned cash.
Call Real Property Management Miami today at 305-517-3900 so we can explain why we are the best possible option to help you grow your Real Estate Investment Portfolio in the Magic City!
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