10 reasons why Downtown Miami is the best long term condo market in the U.S. This article was transcripted from the video below provided by Paramount Miami:
1 – Want to tell the future…look to the past
With a steady growth in population Miami has limited land available and it can only go vertical. Looking at historical data, Miami Real Estate values consistently grow. Those who buy and hold have always won.
2 – It’s basic economics
A health market is when supply meets demand, and both are in equilibrium. In Miami the market has reacted early by reducing supply, allowing the current units under construction to get absorbed.
3 – The speculation days are gone
In past cycles Miami saw speculations where buyers purchased condos with small down payments and mortgages were practically given away. Since then, Miami adopted a 50% deposit structure, requiring the majority of capital invested in a project to be developers equity and buyer deposits, not Debt. In addition, over 80% of all Miami condos sales are all cash, circulating more capital into the market and reducing the chances of a mass sell of.
4 – See first, build later
In many cities, condo developments are still speculative. New York requires 20% deposits and Los Angeles requires only 3%.
Miami not only requires 50% deposits. Buildings under construction are typically 75% to 80% pre-sold, and projects that do not achieve sufficient pre-sales are scraut.
5 -Increasing Value
Miami is consistently compared to among nation global destination, but as the magic city continues to grow in popularity its luxury condo market still offer the best value allowing for tremendous upsite.
6 – Rising rents
Double digit increases in rent forces people to buy versus rent, and also rewards condo investors with higher annual returns in comparison to a riskier investments. With over 90% occupancy, Downtown condos are a solid investment providing stable gains over time
7 – Not all condos are created equal
To fill its housing stock, Miami offers a variety of products at multiple price points in order to accommodate the differences in population. Only 7500 units are being added to Downtown, a small percentage of today’s overall inventory and a much smaller number compared to the 18500 units added in the prior cycle.
8 – When the lights go down in the city
With $11 billion dollars in museums, the arts, pro sports and waterfront parks combines with millions of square feet of new residences, hotels, offices and retail, Downtown Miami is investing more creating a vibrant urban experience than anywhere else in the US
9 – Mass transit and walkability
While other parts of Miami with high-rise condos were built with suburban principles requiring a car ride to reach any destination, Downtown residents are a short walk to existing public transportation connecting them to all of Downtown and Brickell, to the suburbs and airport, all of South Florida and to other major cities in the estate
10 – America’s city of the future
As population ships, millennials and baby boomers are migrating away from the suburbs to live in the city looking for walkability and public transit. With Downtown Miami’s population doubling in size, tremendous job growth and the most international banksouth of new York city, majors publications are naming Miami “America’s City of the Future”.