The real estate market in Florida has shown significant growth, especially in the last two years, which is why it has become an interesting investment alternative.
There is even the possibility of investing in a property without having to travel to Florida, through a real estate specialist who lives in the area, said Pilar Revoredo, a real estate agent in Miami.
“They don’t need to travel, they can call an experienced broker and they’ll send them photos and videos of the properties on sale. Everything would be done virtually and the contract is signed electronically,” he noted.
Another possibility is for the investor to travel to the area, for which he would require a tourist visa, Revoredo added.
Among the attractive areas to invest in Florida are Miami-Dade, Cutler Bay, South Beach, Homestead and Kemdall, says Lucy Gabriela Elías, real estate agent at La Rosa Realty Kendall Llc (Florida).
He says that in the Kendall area, south of Miami, a two-bedroom apartment can be purchased for US$240,000. That apartment can be rented for US$2,100. But it is necessary to deduct costs for taxes, association payments (maintenance) and insurance, which average US$600. With this we have that the monthly net profit would be US$1,500, so the investment for the purchase will be recovered in 13 years.
Another area of great attraction is in Orlando, where various hotel chains have been building condominiums located near amusement parks, with the aim of providing temporary residences for tourists.
The investor can acquire an apartment in these so-called condo-hotels. “The minimum investment in these cases would be around US$250,000,” says Merylla Musso, commercial manager of the Peru branch of the Miami Realty Network agency.
He explains that the average return on vacation properties in Orlando, after expenses, is between 4.5% and 6%, depending on the operator and how long the owner uses the property.
The most expensive properties are those with sea views. Pilar Revoredo states that the minimum prices for a 100 m2 apartment facing the sea are in the range of US$350,000 to US$500,000.
“These properties are rising 10% a year, with that you already have a gain in appreciation, to which is added what it can yield in rents, which are between US$1,800 and US$2,500 a month,” he noted.
Financing
The specialists also indicate that there are options for a foreigner to receive a mortgage loan from financial institutions in the United States.
The main requirements are to have funds to cover an initial fee of 40%, support income that guarantees payment of credit installments, and have a visa to travel to the US.
Merylla Musso refers that the interest rate of these credits is 4% per year, for a loan of between 15 and 30 years.