International Buyers and the South Florida Real Estate Boom

By Sunny Isles Real Estate Expert on July 12th, 2015

Miami homes for sale

Over the past four years South Florida has seen record-breaking real estate sales. According to a report completed for the Miami Association of Realtors, Latin American buyers are leading the way in driving those real estate sales higher.

The Ultra-Rich Buyers

Ultra-rich buyers are snapping up luxury residences in Miami-Dade County and Broward County at a record pace. According to reports from 2014, 68% of these buyers are from Latin America. Rounding out these buyers are:

• Argentina – 12% of sales
• Brazil – 11% of sales
• Columbia – 8% of sales
• Canada – 7% of sales
• France – 5% of sales
• Mexico – 4% of sales

In addition to the foreign cash from these locations, China joined the list in Miami with 2% of the total sales, and this is the first time they have been on it. Considering that China is one of the strongest markets for new business, this can have major benefits for Miami home sales.

International Buyers Love Miami

In order to understand just how much international buyers are increasing Miami real estate sales, it’s important to understand just how much they are paying for their new luxury homes. Among these ultra-rich international buyers, 28% spent over $500,000, with 9% paying as much as $1 million or more. The average price per purchase comes in at just over $444,000, which is considerably more than the national average of only $245,000. Another important bit of information – 81% of these purchases were paid for in cash. These purchases have led to Florida leading the nation in international transactions, with a staggering 23% in 2014.

Why are so many foreign investors leaping to make purchases in Miami? Besides the gorgeous weather and beautiful surroundings, there are two other important reasons:

• Security of Assets – When these buyers invest their own fortunes in American properties and dollars, they protect themselves from the decreases in value that occur with the currency from their own countries.
• Luxuriousness – Another important factor for these increases is the extravagant luxuriousness of the homes that are available in South Florida. Developers understand that foreign buyers want the best of the best, and they are doing everything they can to provide it. By building residences that answer to the discerning tastes of the ultra-rich, they continue to drive massive sales.

Single-Family Homes in Miami

While the influx of foreign investors in Miami has driven the increases in luxury home prices, that has also had an effect on single-family homes as well. February numbers showed that the median price for a single-family home in Miami increased by 7.9% over the previous year, coming in at $245,000. Condos also saw an increase, with median prices jumping to $189,000, which is an 8.4% increase over the previous year. The increases in February marked 39 months of increases on single-family homes, and 44 months for condos.

While all of these increases are considerable benefits, major players in the Florida real estate market caution that it is important to remember that balance and discipline are still important to ensure that these increases continue, without causing major problems in the future.

In France, the Response to South Florida is a Resounding “Oui!”

By Sunny Isles Real Estate Expert on June 29th, 2015

Miami condo for sale

Miami-Dade County has become a hotspot for foreign buyers from all over the world, but the France is sitting in the top spot when it comes to European countries whose citizens are taking a very close look at what South Florida real estate (see website here) has to offer.

While France has taken notice of South Florida, realtors and developers have noticed the interest as well, and they are certainly playing into it. So much so, that ONE Sotheby’s International and Century 21 both use Janet Choynowski’s website Real-Buzz.com to translate their listings into French so that potential buyers can search for homes in their native language.

French Search Patterns

Choynowski, who has researched the nationalities using her site, has also tracked their search their patterns. What she discovered about the French searchers was that they are generally males that are interested in sports. Additionally, most of them also began their searches by checking out a few properties in California. After that, the searchers ended up looking at properties in Florida. Another interesting thing about those Florida searches: there were also more page views on properties in the area, as well.

US Interest

It isn’t a secret that foreigners have an interest in the US. After all, there is plenty to offer. However, the main draw from the searches revolves around the weather and waterfront. Warm sunny climates and waterfront locations garner more interest, and of those, South Florida is the hands down winner in France and among other international potential homebuyers.

Another part of the interest is based on the types of outdoor amenities that are offered by the properties. Paramount Miami Worldcenter, which is a current project that is being brokered by OneWorld Properties, is a location that caters to those desires. This condo tower is a total of 60 stories, and it will include a number of outdoor amenities, including pools, a running area, a soccer field, and tennis courts in the ninth floor recreation deck. Additionally, the floor will also be home to 12 two-story Balinese-style villas that are situated among water features and pools. The final outdoor space attraction is the outdoor living rooms that replace the traditional balconies.

Foreign buyers have shown interest in the Worldcenter, and currently, 15% of the total reservations made since sales launched have been European natives.

Euro Value

Another major consideration for European buyers is the value of their own euro, which is decreasing. When these buyers invest in properties or second homes in areas like South Florida, they are able to preserve their fortunes, despite the lowering in value of their own currency. As the interest in South Florida continues, it is also easy to see that these investments are lucrative, as home sale prices continue to increase, as do the number of home sales that are all cash. Again, a vast majority of these are buyers that are coming from all over Europe, and this is not a trend that is showing any signs of decreasing in the coming year.

Luxury Homes Selling Big in Miami

By Sunny Isles Real Estate Expert on April 9th, 2015

Florida real estate for sale

Over the course of 2013, 20% of the sold single family homes in Miami were priced over a million dollars, and this trend of high-priced luxury homes continued through 2014 and into 2015. The demand for luxury homes is still very strong, and there are a couple of reasons for this. For example, since the economy recovered and since the taxes and interest are still favorable for buyers, getting into a new luxury home is a good idea.

More Families Moving to Miami

One of the things that many real estate agents are seeing is an influx of buyers from other countries, such as Brazil and Mexico. While homes in the area have always been popular for people from these nations, the political and financial insecurities in those and other nations are making many with money want to come to Miami – view Miami waterfront homes for sale here.

Many real estate specialists are also seeing a difference in the types of homebuyers who are coming to buy these properties in Miami. Namely, there are many more families with children who are buying homes and moving to South Florida. Many business professionals are taking the plunge and moving to Miami as well, and they are bringing their families with them.

Many from NYC are looking into buying luxury property in Miami as well. Even though the prices for homes in Miami are getting to be higher than they’ve ever been, that’s not any sort of deterrent for those buyers, since the prices are still lower than or on par with those in New York City.

There are not only great homes, but the schools throughout many parts of the area have great reputations. Coral Gables and Key Biscayne, for example, have high quality schools.

Miami Offers More

Miami is quickly becoming a truly global city. They are growing quickly in a number of different areas, including sports and entertainment. There is a thriving culture in the city that’s appealing to many people, and is certainly one of the big draws. Additionally, architects are seeing all of the fantastic opportunities they have to bring their skills to the city and to create some truly unique and opulent homes. These world-renowned architects are creating homes that people really want, and the prices for some of the homes are reaching $3,000 per square foot.

It is currently a good market for both buyers and sellers. There are plenty of people who want to buy in the city, and those who want to sell can certainly find some motivated buyers. The demand increases and the prices will surely increase along with that demand. It’s a good idea for buyers who find a property that they like to act quickly and purchase it before it is gone.

Many areas in South Florida are doing well right now, but one of the best is Sunny Isles. It has a number of condos and towers that have a wide range of luxury homes perfect for many types of buyers. It is a great place to invest and a perfect time to invest.

Interesting Real Estate Stats for South Florida

By Sunny Isles Real Estate Expert on March 15th, 2015

South Florida real estate

Anyone who has even a slight interest in real estate knows that South Florida is one of the best places to buy and sell currently (website here. The prices for the homes on the market are getting higher, and there seems to be a never ending demand for properties in Miami. Things are really looking up in the area, and that’s great news for anyone who plans to buy or sell in the area. Some interesting new towers are going up, other properties are coming up for sale, and there’s always something new happening in the area. Let’s look at some of the interesting stats in the area.

Closer to Cuba

Even though we are a mere 90 miles from Cuba, for many years, there seemed to have been a near immeasurable distance between the two countries, even though many from Cuba make their home in Miami. However, over the past few months, things have been changing. The United States and Cuba have come closer together both economically and politically. This closeness could mean quite a few changes thanks to the eased travel restrictions. What does this mean? It could mean that the real estate development of Cuba is just around the corner. The next few years will certainly be interesting to see just what happens.

More Units in the Area

People have a thirst for more properties in South Florida. Thankfully, the developers are working hard to meet those needs at every turn. In fact, in 2015, there should be approximately 6,400 new condo units available in South Florida. Of these units, around 5,400 of them will be in Miami. Does this seem like a massively high number? While it might seem high at first, it’s right in line with the demand in the city. More and more people from around the country and around the world are looking for places to buy in Miami. They want everything that the city can offer, and they love the idea of luxury condos just steps from the beach.

Making Travel Easier

Another reason to love what’s happening in Florida right now is the fact that the state is working hard to make travel between areas easier. The All Aboard Florida plan for a passenger rail service is underway. Service doesn’t begin until late 2016, but it is interesting to see just how many more travelers this will bring to and from Orlando to Miami.

More Hotels

In addition to the travel system and the additional condos, there will be 17 new hotels just in the Miami area completed in 2015. This will provide the city with another 2,761 rooms this year alone. Even more hotels are planned for the future, ensuring that the city always has enough rooms for those who are visiting.

Miami is a very exciting area to call home now, and if you are just now thinking about getting property in the area, it’s an ideal time. You will have a wide range of options thanks to all of the choices in this growing and vibrant area.

Stars Buying and Selling in the Miami Area

By Sunny Isles Real Estate Expert on February 23rd, 2015

Miami waterfront homes

Miami is a popular location for home buyers of all stripes, whether they are northerners who want to find a warm and fun getaway for the winter months or they are some of the biggest stars on the planet. Many of those celebs are buying and selling homes in the Miami region – View All Miami Waterfront homes for sale here.

Celebrity Real Estate Deals in South Florida

Singer Shakira who owns a home at 3140 North Bay Road is currently in the market to sell her home. Although the home does not have a current listing, brokers in the area are aware that it is actually for sale, and the current going price, according to those in the know, is $15 million.

Rumor has it that David Beckham is looking at properties in the area as well. As many people know, he wants to start a MLS team in Miami, and it’s natural that he would be looking for a place to call home for him and his family. Latest reports say that he’s been looking at a Key Biscayne home going for $13.9 million. The 755 South Mashta Drive home is on a private, gated road, and it offers 13,898 square feet of space. It’s also right along the ocean.

Oscar winning actor Matt Damon listed his home, at 6020 North Bay Road last year. The list price for the home was $19 million. It features ten bathrooms and seven bedrooms and is currently under contract.

Producer and actress Poonam Khubani recently bought two units in the new Miami Beach EDITION. The hotel offers 26 unique residences, and she’s now the proud owner of two of these luxury units. Khubani is also vice president of the company Telebrands, known for their As Seen on TV products. Her husband A.J. is the president of the company.

Why Do Celebrities Love Miami?

These latest movements in the real estate market in the Miami region highlight just a small number of the celebrities who have homes in the area and those who are looking for properties to buy. Miami has been a very popular location with celebrities for a number of years now, and there are quite a few good reasons for this. Miami is a fun place, a good place to spend a few months or an entire lifetime. Celebrities enjoy the area for most of the same reasons that everyone else loves Miami and the South Florida area.

One of the reasons they are looking to purchase in the area is that they are able to get quite a bit more for their money when compared with places like New York or Los Angeles. It’s a beautiful location and the beach is never far away. The city is home to many hot clubs and restaurants, and celebrities are finding that many of their friends and peers have homes there already. They like being around other celebrities, and they often find that they can live in a bit more anonymity than they can in other areas.

Recession Fades in the United States, Miami Real Estate Improves

By Sunny Isles Real Estate Expert on February 15th, 2015

Miami real estate for sale

Several years ago, when the United States was in the grips of the Great Recession, things were looking rather bleak for a large number of people at every economic level. People were losing jobs and finding it difficult to get more work. The financial bubble the country lived in burst and the economy, the stock market, and the real estate market fell quickly and deeply. They fell to a level that made it seem almost impossible to recover fully. It was a very frightening time for a number of people in the country. They lost homes, marriages, and their livelihood. It was the biggest financial fall the nation had suffered in many decades.

Now, years later, things are really turning around in a good way. Most of the experts agree that the United States is seeing a large surge when it comes to recovering. The Federal Reserve even certified that the economy is stable. President Obama points to a drop in the deficit as well as a massive boom in the energy output of the United States. These things are helping the country get stable footing in the world economy. More people are going to work, businesses are growing, and things are looking good for every sector of the country.

The unemployment rate in October of 2014 was 5.8%. This is the lowest it’s actually been since July of 2008. The forecast for growth in the U.S. economy is 3.1% in 2015. This is far higher than the expected growth in other countries around the world, and that should be very exciting for people in the U.S. It means that things really are turning around for the better. They even closed down the stimulus program, feeling it is no longer necessary as a means to beef up the economy.

Another area that’s been providing some relief to the wallets of people across the country is gas. The price of gas is lower than it has been in years, and saving at the pump means more savings in the bank, or more money to put back into other areas of the economy.

Miami Real Estate Market Improves

One of the areas hit the hardest was the real estate market. People could no longer afford their home, and they were losing property and going bankrupt. It was difficult to sell properties at all, and the number of homes that were on the market vastly surpassed the number of buyers. This drove the price of homes down, but even then, it was difficult for most people to even contemplate buying a property at that time. However, the improved economy means that more people today have the means and the savings to buy a nice home. It’s easier for them to get loans, and they and the banks are smarter this time around. They will not get into loans that could turn around and bite them in a couple of years. Miami real estate market is doing phenomenal, especially the luxury segment. The prices have gone up over 20% during 2014 and there is no slowdown anywhere on the horizon. It is predicted to rise even more in 2015.

Thinking of Building a Home in Miami Beach? Think Again

By Sunny Isles Real Estate Expert on December 29th, 2014

Miami Beach homes for sale

Picture the city of Miami Beach and South Beach. Chances are good that condo properties loom large in that mental image. There’s a good reason for that. They’re immensely popular throughout Miami-Dade County. However, that doesn’t mean that single-family homes have fallen out of favor or aren’t in demand. Many would-be homeowners would prefer to have their own home designed and built on their own land, rather than buy into a condo property. The problem is that few people can actually manage that. Why is this the case?

Little Land

One of the problems here is that the Miami Beach area is highly developed. That means in order for something new to be built, something else usually has to be torn down. In the absence of empty lots and buildings that need demolishing, would-be homeowners are finding it harder and harder to locate a parcel of land that suits their needs. (View All Miami Beach Homes For Sale Here)

There’s also the zoning problem – what little available land there is may not be zoned for residential use. Most of it has already been zoned for commercial use (including the building of condos). Why? There are two primary reasons. First, the demand is there. Second, the area makes more in tax revenue from land that’s been zoned commercial rather than residential.

Homebuilders

While the impact of the land conundrum has been felt by homebuyers, it’s homebuilders that have been hardest hit. The Atlantic Ocean bounds builders on the east, and the Urban Development Boundary prevents expansion to the west. Builders have nowhere to go, and that means smaller builders have actually gone out of business. Very few builders remain operating in the area that aren’t big businesses. Even large construction companies are finding the going tough, though.

Down the Road

Currently, the Miami-Dade area has a three-month supply of existing homes on the market, but the problem comes from the lack of replacement lots. Once those vacant homes are sold, there are fewer and fewer empty lots available to build on to replace them. Lot shortages have already had an impact on the industry, and that effect will only become stronger in the coming months. Experts predict that things will get worse before they get better.

One way that builders are coping with the shortages is to change their development and building habits. In the past, massive, sweeping neighborhoods were constructed. Those are largely gone now, though. Builders are instead focusing on the smaller 20-acre lots, or even 10-acre lots, and developing them as best they can.

The Condo Market

In direct contrast to the single-family home construction segment, condo construction is thriving. Sunny Isles Beach alone had 15 multimillion dollar developments (View all preconstruction projects in Sunny Isles Beach) in the last 10 years, and the greater Miami area has seen countless more. Condos are viable because they require a much smaller initial footprint, and can be home to hundreds, even thousands of families. A single 20-acre site might accommodate 900 units.

It remains to be seen just how long it will take the single-family housing industry to recover, but in the meantime, the condo industry continues to thrive.

Six Year High Reached for Miami-Dade Median Home and Condo Prices

By Sunny Isles Real Estate Expert on November 2nd, 2014

Miami Beach real estate

The prices for single-family homes and condos in Miami-Dade County (VIEW SITE HERE) have been moving inexorably upward for several years in response to the natural rebound of the real estate market, as well as the influx of investors and the area’s improving employment segment. In fact, median home and condo prices just hit a six-year high for the area. However, if you think that means Miami has become the most expensive place to live in the world, it’s time to rethink that.

In Comparison to International Markets

Miami attracts potential residents and real estate investors from all over the world. They flock to the warm, sandy shores to soak up the sun, enjoy one of the most genial living environments in the world, and to reap rewards on their investments. What they don’t do is overpay for real estate. Whether interested in a condo or a single-family home, you’ll find that reaching that six-year high point hasn’t drive Miami real estate through the roof. You can still purchase about six condos in Miami for the same price as a single apartment in London. Despite the modest cost, Miami and the surrounding area still makes it into Christie’s Top 10 list of the world’s best luxury residential markets, putting it on part with the likes of New York and Hong Kong.

What the High Price Really Means

If you take a long, hard look at the Miami-Dade real estate market, you’ll find that it’s not so much a single market area, as a lot of sub-markets stitched together. The markets mirror the layout of the various neighborhoods throughout Miami and greater Miami-Dade County. You’ve got Downtown/Brickell. You’ve got South Beach. There’s Bal Harbour, but there are many, many others, and the ultra-high multimillion-dollar properties are only located in a few of them. In reality, almost 70% of condos in the county actually sold for less than $300,000.

In addition, you’ll find that the six-year high figure is still lower than what it was back before the recession hit, sometimes considerably so. For instance, the median price for a single family home in Miami at the end of July 2007 was $382,000. Today, it’s $251,000. That’s up from the $162 grand it cost in 2011, but well below the pre-recession peak figure. You’ll find this holds true for condo properties as well. So, while the prices have increased significantly, they’re not as high as you might think, and they’re nowhere near as high as they once were. Why does the past price matter so much?

Miami real estate is still technically in recovery. Prices are rising. Eventually, they’ll make it back to their pre-recession levels, and you’ll find that those who bought early, even now at the six-year high point, made out far better than those who waited around to see what the market was going to do. Rest assured, it’s going to keep moving up. The only question is when you’ll get in.

Miami Receives EB-5 Visa Designation

By Sunny Isles Real Estate Expert on August 4th, 2014

Miami Beach real estate

Recently, the City of Miami received final approval for their EB-5 Regional Center for Foreign Investment, which has the potential to allow many more foreign investors to start putting money into the economy. This particular designation will allow many foreigners, especially those who are from China, to be able to invest in properties in the South Florida area.

Why Is It Good For Investors And Good for Locals

Mayor of Miami, Tomas Regalado feels that the approval is going to be a very good thing for both the investors as well as for those who are living in the area. The program will actually let the city help foreign nationals who are trying to put more capital into the economy by giving them special immigration status. However, not just any investors will do. They need to invest at least half a million dollars into the area, and they have to be able to prove that within two years they’ve created a minimum of ten jobs.

They hope that the program will actually encourage more investors to take root in South Florida, and they feel that it has the potential to create thousands of new jobs. This fuels more economic growth for the region and makes it a better place for all who live there. Miami is one of the pioneers when it comes to this type of program, and you can bet that a number of other cities around the country will be waiting and watching to see what happens. If it is successful, there is a good chance that many more cities will follow with their own similar programs later.

Miami will become something of a model that the other local governments around the country can follow.

What Is the U.S. Immigrant Investor Program?

It’s important to take a deeper look at the program to learn more about what it entails and what advantages it has the potential to offer. First, it allows two-year residential status for qualifying investors and their families. This residential status is conditional. The investors will need to invest at least $1 million, or $500,000 in a “designated target area”. They need to invest in businesses that will be able to create at least ten jobs for American workers during those two years.

After those two years, if the investors are able to meet the above conditions for creating jobs and investment dollar requirements, then they will be able to apply for an receive unconditional permanent residency.

The program offers many benefits and advantages for the investors. First, it does not matter what age they are, how much business experience they have, or their language. The investors can be limited partners – they do not need to be managing the investment on a daily basis. Also, they do not need to be in the United States fulltime to manage their business. They can maintain the business from their country of origin.

The program is new and it remains to be seen just how effective it might be. Still, it’s an exciting opportunity, and it could be very good for Miami real estate – CLICK HERE to view current listings in Miami Beach.

Miami Beach Is the Top Luxury Destination Two Years Running

By Sunny Isles Real Estate Expert on July 31st, 2014

Miami Beach real estate

When people think of luxury, they think of Miami, a city that has it all. Whether you make your home in Miami (view Miami homes for sale website here), or you visit occasionally, it’s easy to see and appreciate the opulence the area offers. This is the second year in a row that Christie’s International Real Estate put the city on their list of the top ten luxury property destinations. Some of the other cities that also made the list include Los Angeles, New York, Paris, London, and Hong Kong.

One of the things that many brokers say helps Miami stand out from those other cities is the fact that it is still relatively affordable, even for luxury accommodations. Those who choose to buy in the area tend to get far more for their money than they would in a city such as New York or London, for example. Let’s take a look at some numbers for comparison. In 2013, the average price per square foot for a luxury home in Miami (see all Miami luxury homes for sale here) was $559. During that same year, the price per square foot of a comparable home in San Francisco was $829, and in London it was an astounding $4,683.

It turns out that luxury is about more than just the price, though. Luxury is about much more, such as the features and the location. Let’s look at what Miami can offer.

The Location

First, think for a moment about the location. You are right on the water, and it’s never more than a few minutes away no matter where you might be in Miami. You are close to a host of attractions, the water, and even the Keys and Bahamas if you might want to take a quick weekend jaunt. Luxury is about living the good life, and that’s easy to do with such a great locale.

The Properties

The properties themselves are very important too. The designers and architects who create the condominium towers know luxury. The buildings feature every amenities that you could want, including pools, security, gyms and spas, on-site restaurants and lounges, modern design, and so much more. The units themselves often have the latest cabinetry and flooring, as well as balconies and terraces for relaxing or entertaining. One of the best things about those buildings is the views they can offer.

The Culture

Of course, one also has to look at the culture of Miami to get just why it is so special and so different from all of those other cities. It’s a great melting pot of cultures, and it has quite a strong Cuban and Latin influence in the area. This colors the city and makes it unique and special. From the food to the nightlife and beyond, culture in Miami equates to great living, and really, that’s what luxury is all about in the end.

If you’ve been considering buying a home in the Miami area, now is a great time to do it. You want to get in on the action before all of the best properties are gone! Please visit our site which offers complete resource on buying real estate in Miami, including real-time listings, rentals and sold history – http://www.sunnyislesmiamirealestate.com/Miami-Beach/ or call our office today – (305) 336-0457