late 19th century Miami it was a village of 444 inhabitants around a railway development. In the first half of the 20th it was promoted as tourist destination, with Havana-style night clubs and orchestras that gave the beach its tropical atmosphere. It was already an emblem to retire in old age – a place without winter – when the first wave of emigrants from Cubaafter the 1959 revolution, his face changed.
Today 51% of the 2.76 million people who live in the county of Miami-Dade was born abroad. The predominant ethnic groups are of Hispanic origin: 34.3% Cuban, 10.9% South American, 8.5% Central American, among them.
those who most properties buy – live there or as investment— are, presumably, the Latin Americans: according to the Association of Real Estate Agents of the FloridaArgentines represent 13% of all buyers, followed by Colombians (12%) and Venezuelans (10%).
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The Mexicans, who appear in sixth place after the Chinese and the Filipinos, are the ones who prefer the most expensive properties: they choose homes five times more expensive than those bought by Argentines, who prefer the cheapest.
After market crash in 2008, which took a heavy toll on Latino communities in South Florida, both former residents and immigrants, Miami has bounced back. Currently, in fact, there is a notable increase in sales and rental prices: after the pandemic, Canadians, New Yorkers and Californians have come to the beach in search of good weather and low taxes, and their pressure on the market has added to that of Argentines, Colombians and Venezuelans.
For Latin Americans, the historical reasons why Miami has been their favorite investment destination, large and small, throughout the region remain. Of Mexico a Chili and Argentina, the countries present political oscillations and economic instability; the quality of life is lower than that of the United States and the violence abounds, particularly in places affected by Maras and the drug trafficking.
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There are also cultural reasons: the proximity between Florida and Central America and the Caribbean it facilitated contacts and for the upper classes of many countries owning a property in Miami has been a status symbol throughout history. The dominance of the language Spanisheven in counties to the north, such as Broward Y Palm Beachgives great ease to those who do not speak English.
According to Miami Partners Realty Group, it is estimated that nearly 1,400 multinational companies have chosen Miami as the location for their offices for the Latin American market and the commercial exchange between the city and the countries of the region accounted for 40% of the total.
For political reasons similar to the Cuban case, the Venezuelan population increased by 116% between 2000 and 2010 —there is a Little Venezuelathe town of golden— and the Central American, driven mainly by the Nicaraguan, 65 percent. The elections in Mexico, Chile Y Colombia seem to have also influenced the increase in investment and population of those places, and in the case of Argentina, the main driver has been, as in 2001, the economic crisis.
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A survey by the consulting firm Real Time Data (RTDs) revealed that For 96% of Argentine savers, the situation in their country ranges from fair to very bad., and for 90% it will not improve in the next two years. The Bolivians have similar opinions (89% and 85%), followed by those mexicans (87% and 78%) and peruvian (87% and 81%).
These investors prefer Miami to place their money in real estate (mainly), technology Y building: 24% named the city, and 21% named New York. they followed Orlando, Boston, San Francisco, Chicago, Los Angeles, Columbia Y houston.
The reasons include infrastructure: the Miami airport is the third in the United Statesbut its area of influence also has roads first, ports, hospitals, schools, hotels and recreational spaces. In the area of Brickell there is the highest concentration of international banks from the country. Location also matters: the Florida peninsula has a strategic location between Europe and Latin America and concentrates more than 100 consulates.
The economic solidity of the state (it is the fourth in wealth production in the United States), the low taxes and the profitability in dollars are a strong attraction for people from countries where the currency depreciation and the Tax pressure they are constant. In addition, the country offers legal security and the city makes operations very simple: you don’t have to live there to invest (although investing isn’t enough to live there, unlike places like Spain).
Opportunities don’t start in the millions: a capital of USD 100,000 can work in the Miami real estate market. Foreigners also have access to the credit (although rates are currently higher than the usual historical level) and in many countries there are companies that arrange financing for residential and commercial properties in Florida. That is why it is common for hotels to hold seminars in Spanish to learn how to invest in real estate.
Traditional investments in the real estate market leave a annual income from 4% to 8%but Miami also offers other more interesting formats —from 8% to 12% per year— such as the stake in specific developments. With 34 municipalities to bet on and historical familiarity —it is joked that Miami is the capital of Latin America—, the most famous county in South Florida continues to be a favorite for investors in the region, both to settle and to secure capital.
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