2019 was a great year for real estate in Florida. An analysis about the real estate’s market on South Florida was recently presented on a conference called “Florida Real Estate Investments for Foreign Nationals “, organized by te USA-Mexico Interamerican Chamber of Commerce in Miami. Such study revealed the current tendencias on the real estate area and business opportunities for foreingers.
This event, carried out at the offices of the international and famous lawyer firm Greenberg Traurig in Miami and it was sponsored by HSBC Bank e Inmoviliare. Subjects treated are crucial, just like particularities and inflections of the real estate industry in Miami, so as the different choices for financing, legal and fiscal requirements for foreign entrepreneurs and buyers who want to invest in real estate inside the USA, specially Florida.
Panel was integrated by four reowned specialists in real estate, bank, and legal áreas: Mr. Andrés Aquilar, HSBC Main Mortgage Advisor; Mr. Gonzalo Corabarria, Exan Capital partner, Mr. Carles Farre, KPMG LLP International Tax Specialist, and Mr. Michael Maxwell, partner and executive of Maxwell + Partners, real estate developers and consultancy.
During the conference, panelists debated about the enormous investment potential in Miami when empty real estate availability is low and its demand is growing. Investments on comercial and industrial properties are growing and city’s demography is also constantly rising. Even though the general appreciation is that the development rhythm of new building in Miami is slower than before, and the market is trying to cosume what was build during the past three years, there is a great opportunity at condos and apartment complexes, population is growing and market researches are optimistic about its health”, according to Michael Maxwell.
Miami is evolving to a more urban city and a life style more similar to that one of the biggest metropolis in the USA, where buildings and all-purpose complexes are a tendency, something familiar por Latinamerican people, specially for Mexicans. A great example of this gradual transformation is the recently open Brickell City Centre mall, a great scale copmplex that gathers commercial spaces, offices, large houses, and a hotel. All of it at the center of the financial center of the city, which gives a new meaning to the coexistence experience at a city area with a high population density. “Most of foreign investors we provide with consultancy are interested in investment properties, such as comercial spaces and appartment complexes, they look for long term investments because they know the progressive potential of the city”, Maxwell affirmed.
Added to the positive economic and demographic city’s development there are the favorable and new Tax Law recently come into effect in the country and in Florida. Such Law has had a great influence on multinational companies that migrate and locate on the southern side of the state. The effect has also attracted some single investors that have no credit history in the country, but they are able of using the different optios of financing offered by baks and financial companies through competitive loans for buying a second home and comercial use properties, which facilitate the investing process.
Andrés Aguilar, HSBC Main Mortgage Advisor, explained the different financial options offered by the state, “In general terms, for granting a loan, our bank requires a downpayment of 25% or 35%. Loans for foreign people are available for acquiring houses or commercial use properties in the USA, downpayment is generally 25% for buying a second home and 35% for investment properties. We offer very competitive interest rates from 4% up to 5.5%, but we also offer fixed rate interest.”
The most recent survey executed by the National Association of Realtors in the United States shows that Mexico is located in the first places of the countries with a great number of investments on the real estate area in 2017. In Florida, Mexico has the tenth place of foreign capital investments for buying real estate. Just the previous year, Mexican citizens invested US$284 millions in properties at Florida, nearly 4% of the whole foreign investments in this area, according to de Association of Realtors in Miami.