4 tricks to invest in the Miami real estate market in 2022
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 must develop a plan that will help 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 thanks to the initial investment. In the 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 the 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- Pre-sale or batch purchase
Another trick to invest in this 2022 will be to acquire lots and/or pre-sale properties. Purchasing a lot or 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 the short-term return. This means that if you buy and then sell a 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.
Similarly, when buying pre-sale homes, the savings are significant at the same time as the surplus value leaves the property with profits.
3- Seek pre-approval of a credit
Another trick to invest in this 2022, is that when you get pre-approval of a credit you will be able to know if you meet the requirements and you can estimate time periods according to your financial situation. This is beneficial for expediting the purchase of a property, while helping lenders to rely on your property score and economic ability.