3 tricks to investing in the Miami real estate market in 2022
Florida has an excellent range of real estate opportunities that will make you want to move to Miami this year although for those who are not looking for a permanent home this is a great time to invest in South Florida.
1- Be clear about your investment objective
To set an investment goal you must first be clear about the criteria for making decisions. This means that you should develop a plan that helps you evaluate the costs and benefits of an investment project. It is also necessary to understand that these indices will help you channel decisions so that actions fit real estate objectives.
Among the most common objectives are:
Generate an income
This objective is based on the generation of monthly income through the initial investment. In real estate this is understood as renting and renting houses or apartments and is one of the main sources of housing in Florida today. Profits from residential rentals are common for foreign buyers who don’t want to move to Florida.
To retain capital, it is necessary to minimize the risk of loss and maintain purchasing power. This is achieved through investment in order that the return should not be lower than the rate of inflation, so strategies must be implemented in case of risks. In real estate this translates to capital investment to avoid losses due to lack of maintenance and repairs to the property.
To achieve this goal, strategies need to be established to increase the value of our home. Bathroom renovations, roofs and different interventions can be carried out to obtain long-term capital gains. This goal is applied by fix and flip investors and other market trends looking for profitability in their real estate projects. Also, one of the direct consequences of investing under this perspective is the growth of the luxury real estate market.
2- Consider the surplus value
Capital gain is the monetary difference between the initial purchase price and the selling price. In the real estate of Miami, an example may be the pre-sale purchase of a house or apartment in South Florida. This real estate opportunity can increase its value if there are renovations and other types of interventions that add value to the property.
There are also factors that influence, but we cannot control, as they are: security, technological development and growth of the area, proximity to schools, shopping centers and hospitals, among others. That is why it is important to study very well the market and the area where the property will be acquired, since it can bring benefits to the surplus value of the property.
3- Pre-sale or batch purchase
Another trick to investing in 2022 will be to acquire lots and/or pre-sale properties. Purchasing a lot of land corresponds to a lower cost than purchasing several properties. Currently in South Florida there are some lots to sell, which is a very good opportunity if you are looking for a short-term return. This means that if you buy and then sell land for the construction of houses or a building you will get more profits according to the development value of the area. Therefore, many investors and real estate agencies are opting for this type of investment because it allows them to set medium-term goals
Have you considered investing? Have questions regarding a property? Give us a call! The team members at Homeinc are standing by waiting to help you put a plan in place. You can call us at 1-888-850-2636. Or, reach out to us on our website here. We are ready to help.