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Wednesday, August 10, 2022

How much does it cost to buy a house in Miami? It is spent by Colombians who are buying

“Colombians look to Miami while Petro’s election fears capital flight,” the newspaper said. financial Times recently. In social network forums and friend groups, many people ask the same question. How much does it cost to buy in Miami? How is this done? Are taxes declared in the United States? Does it give a better visa?

Having a home in Miami has historically been considered a status symbol and a privilege for some., But recently the market has expanded and many Colombians with savings, who see the dollar could rise even higher, see it as a profitable investment prospect.

Testimonials of people who have done it appear in the same forums. And now, with Mickey Mouse owning a house, he gets money in dollars, because of rents that replace real estate or AirBnb. Is that promise true?

Week Spoke to experts.

The first thing people mediate for these qualities is spontaneity. Proximity (only three hours by plane), availability of flights, a practically Latin culture, but with the command and advantages of a developed country, is what makes this market so attractive to Colombians.

Added to this are factors such as access to mortgage loans with US financial institutions specializing in lending to foreigners and lending them much cheaper than Colombia, despite charging slightly more than its citizens: You can find rates between 5 and 7 per cent, whereas here they are between 10 and 11 per cent.

Buying a home is an investment that many people rely on. , Photo: Getty Images

This situation turned Colombians into the heroes of the real estate market in Florida. According to the Miami Association of Realtors, Colombians were the second foreign nationality to have purchased the most real estate in South Florida in 2021. Argentina got the first place, that they acquired 13 percent of the properties sold in the previous year; Colombians responded for 12 percent and Venezuelans for 10 percent.

This good dynamism in home buying – which has been accompanied by several recent records of units sold within the country too – has been maintained this year. And to this added another uniqueness: As of March 2022, Colombians are also the foreigners who show the most interest in buying in Florida.

At least that’s evidenced by data from the Miami Association of Realtors as of May, an association that indicates that after the pandemic, many Americans’ interest in living in Florida has increased and they are joined by foreigners who haven’t. Want to live in unstable political environment, more and more often in different countries.

“Government changes, such as those in Colombia recently, have increased investment in Miami, as global buyers with a history of appreciation seek to keep their money in safe places. That’s what the Miami real estate sector has shown, with more than ten consecutive years of value growth.”, said Fernando Arencibia Jr., chairman of the board of directors of the real estate union, in a statement.

, photo:

Colombia contributed 12.34 percent of all international searches on miamirealtors.com in May 2022, an increase of 11.76 percent from April searches and if you take into account that every month on that portal they find housing in more than 160 countries. This is an important statistic when people search.

capital flight?

Colombians’ greater interest in buying in the United States was recently reviewed financial Times, The publication assured that the increase in inquiries from Colombians, especially after the victory of Gustavo Petro as the country’s new president, suggests that they would consider investing their money not only in the United States, but also there. Will go too

The newspaper notes that Miami has long been a haven for Latin Americans to “escape from unrest, persecution, or economic instability in their region”, which is reflected in the fact that 70 percent of the county’s residents of Miami Dade. are Hispanic.

Floralba Nez, International Real Estate Broker (realtor) with over 15 years of experience in the Florida market, confirmed the growing interest of Colombians. What to say, On average, those interested (because buying is a time-consuming process) are people between the ages of 32 and 40, who are looking for a better future for their young children and, moreover, heirlooms or income generating ideas. are United States. Other elders do this to leave an inheritance to their children or because they are the ones who travel when needed and the parents live in Colombia.

“Almost everyone is looking for a plan B, an option to leave the country if necessary. That doesn’t mean they want to go now,” he says.

Some Fear An Outflow Of Resources From The Country, But The Truth Is That Overseas Investment Is Not A New Issue For Wealthy Colombians.
Some fear an outflow of resources from the country, but the truth is that overseas investment is not a new issue for wealthy Colombians. , photo:

Edgar Pulido, international director of North American firm LATAM’s Colombian offices in the United States, also affirms Colombians’ interest in American real estate, particularly as a diversification strategy, “not having all the eggs in the same basket”. Applying the principle of .

However, he warned that US home prices have risen 25 percent in the past year, which has inspired many experts to talk about the housing bubble. As a result, it recommends real estate not in Miami or Florida because of its high value, but in emerging areas such as Baltimore, Virginia, Philadelphia or Detroit, where you can buy a home for $80,000, compared to an average of $350,000 in Miami. Is.

This, of course, is seen more as an investment rather than a residence, as many real estate agents also help find tenants and with paperwork for tax payments in the United States.

Nunez agrees that Florida’s market is expensive, but says that, unlike other states, it is not prone to recession. “Florida is a privileged state, as there are large domestic capitals coming in, especially from California and New York, as well as from overseas. They are investing in Miami for their tax system, while other areas are federal, state and city. Taxes are paid; in Miami only federal is paid”, he explains.

Despite Colombians’ interest in real estate overseas, it is worth remembering that the group that has access to this type of investment is still limited. Dane figures show that until last year only 1.8 percent of the population was considered upper class, which equates to 921,000 people.

Similarly, Luis Carlos Reyes, Diane’s designated director in the coming government, said Vicky in the Week That, although Colombians are free to invest abroad, he does not recommend doing so in Miami, a city that is at risk of being under water due to climate change.

Luis Carlos Reyes Appointed Director Of Diane
Luis Carlos Reyes appointed director of Diane photo:

other options

Since many Colombians do not have sufficient resources to obtain housing abroad or cannot move to that country because they will have no way of generating income there, other options seem to be to diversify their investments. .

One of them is the purchase of franchisees that are already operating in the US market., It can cost between 160,000 to 370,000 dollars, in which case, in addition, an investment visa can be purchased. An example of this is the Figaro Group, a chain of barber shops and beauty salons, which began in Colombia and is already licensed to operate in the United States, a country where it is growing with a franchise system.

is also the case fintech Milo is specialized in offering mortgages for foreigners who wish to buy in the United States. His offer is that the interested party bids with him first and with that he knows how much money they can lend him. With this data you can better search for a property to suit your needs. On average, they finance 70 percent of the home’s value and are, in fact, seeing the most interest from Colombians.

For now, many compatriots are evaluating Miami to invest in or live in. It remains to be seen how many of these projects become a reality.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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