The rise of the dollar did not daunt Argentine investors, who this month returned to top the ranking of purchases in their favorite city to vacation in the US.
The real estate market in Miami continues to grow and it is the Argentines who are driving the boom the most. Neither the sharp devaluation of the peso that was recorded since the beginning of the year – deepened in May – shocked the Argentines who were ranked number one in the ranking of Real Estate investors in the city during the first half, with 14% of the total purchases.
This is shown by the latest statistics from the Miami Association of Realtors. The report assures that the investment of foreigners exceeds U.S. $ 7,000 million, of which 51% comes from South American countries that occupy seven of the 10 positions in the ranking of the main international investments.
Behind the Argentines, the largest buyers are Venezuelans – a country also hit by a severe crisis – which accounts for 9% of purchases. The top ten, complete in order Colombia, Canada, Brazil, Mexico, France, Ecuador, Peru and the United Kingdom.
The most important real estate operators in Miami explain that the city, every day becomes more of a metropolis that appeals to the preferential lifestyle of many South Americans. And above all, the advantages and incentives that Miami offers are difficult to find in other latitudes with a similar standard of living.
Among the most relevant data that comment, observe that 70% of foreign purchases are a combination of investment and personal use, and stands out in the remaining percentage that 15% corresponds only to private use and as a second home.
“The occupancy rate, which exceeds 90%, is very important to measure the stability of the market and Miami ranks third among the main tourist destinations of AirBnB in the United States,” says Reid Boren, General Partner of Two Roads Development, builder of Elysee Miami.
Particularly, regarding the characteristics of the Argentine as a real estate investor in Miami, Sergio Mannarino, Vice President of Sales and Operations of One World Properties -the company that commercializes the Paramount Miami venture- “Argentines seek convenience in terms of location and what If the distance between Miami and Argentina is much wider than that of other influential Latin American countries such as Colombia and Mexico, the Argentines seek to simplify their stay. ” In this project, 80% of the units are already sold and both there and in Elysee, another development of the company, the portfolio of investors 66% of the closures were made in cash.
There is another point that interests investors. According to an analysis of Dodge Data & Analytics, between now and 2017, it is recorded that residential construction in Miami surpassed the commercial that includes schools, universities, churches and bookstores, among others.
The values of the properties in the favorite city of the Argentines for vacations depend on many factors but in general terms I can get a property that is destined to the investment for $ 100,000. The disbursement is justified knowing that you can rent for u $ s 1000 per month. The real estate agents calculate that after paying the expenses, the returns for that property oscillate between 6% and 8% annually.
For a larger home and family, the values start at $ 350,000, but there is financing applicable to that purchase and even a minimum initial amount.
The latest data released in April show an increase in new construction of 58%, for US $ 687 million.