Where the magic numbers add up when investing in real estate

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By Amanda SharpeReal Estate Content Editor, Deborah Battsek PR

Miami, nicknamed “the magic city”, is where the world’s richest choose to invest in real estate. Based on transaction volume exceeding US$10 million per year, Miami ranks as the fifth largest real estate market; only London, New York, Los Angeles and Hong Kong come out on top.

Last year in the Magic City, approximately 146 luxury residences sold for more than $10 million, and 23 real estate transactions were recorded for $25 million. High net worth individuals (UHNWIs) have been very active, including Kenneth C. Griffin, a billionaire hedge fund manager who purchased two glamorous homes for more than $150 million in total.

Miami is much more than a tourist destination with its beautiful beaches and bays; a sunny and warm climate; and a vibrant culture that reflects the laid-back Florida lifestyle with a sense of metropolitan enthusiasm, although this context has certainly contributed to the strong appetite for rentals. Known as a luxury vacation destination with a constant tribe of tourists, it is also home to expats, young professionals and entrepreneurs. Such a wave of diverse arrivals has boosted demand for quality rental accommodation in desirable residential areas of the city. Investors have seen their rental investment properties provide excellent returns throughout the past year. Figures produced by Zillow show that in Miami Beach, the median rent is $1,200 higher than the national median.

The real estate industry has historically capitalized on the things that make Miami look like a bargain, and that’s reflected in the volume and variety of investment opportunities and the big-name developers stealing pieces of Miami’s real estate pie . Rarely a day goes by without a high-profile real estate developer making headlines by acquiring a site, completing a transaction on a building for redevelopment, or launching a state-of-the-art luxury residential scheme in a prime location.

So, who are some of these major real estate players and what are the biggest benefits of owning oceanfront condos, apartments and villas in Miami Beach?

Great fishermen cast their nets on Six Fisher Island

Six Fishermen Island

Looking for perfect examples of residential master plans under construction, investors need look no further than the exclusive 216-acre Six Fisher Island off the coast of Miami Beach. World fame Associated group took the plunge with a project for a 50-unit ultra-luxury condo complex. Penthouses are expected to cost upwards of $60 million, and regular units will likely start at $30 million. Unit sizes at Six Fisher will range from 3,800 to 12,000 square feet with floor plans of three to five bedrooms.

Six Fishermen Island

Miami’s sophisticated neighborhood attracts athletic retirees who want to live an active lifestyle after cutting back on work commitments. Related’s Six Fisher Island development will reflect this emphasis on health and wellness by offering state-of-the-art fitness and health amenities, as well as a 4,800 square foot rooftop terrace featuring a infinity pool, picturesque ground floor pools, 17 tennis courts, four pickleball courts and a PB Dye golf course.

Jon Paul P.erez, president of Related Group, commented:

“At Related, we strive to continually exceed the needs and desires of our diverse buyers. As the concept of “retirement living” evolves and changes, we have worked hard to ensure our on-site lifestyle amenities stay ahead of the curve. For example, in our most upscale properties, like Rivage Bal Harbor Residences and Six Fisher Island, we have integrated amenities that promote a more active lifestyle. Both properties feature state-of-the-art fitness equipment that encourages low-impact activities, such as a multi-sport simulator, tennis courts, pickleball and paddle ball courts, and multiple swimming pools. We believe these offerings will contribute to a healthier, happier and more active lifestyle that is ideally suited to this demographic.

Given the exclusivity of the island community, it’s no surprise that Related Group tapped internationally renowned interior designer Tara Bernerd & Partners to contribute to its signature style of accessible luxury, elegant timeless and of connection with places, conferring a feeling of belonging.

Tara Bernerd Six Fisher Island

Tara Bernardfounder of Tara Bernerd & Partners, said:

“Fisher Island is a unique escape, a home that is both connected and distinct from Miami. At Six Fisher Island, we brought a fresh perspective to reflect the exclusive nature of the island, with its well-traveled, sophisticated and design-savvy residents. We sought to bring a very elaborate and thoughtful feel to the residences and the many amenities the property will offer, a contemporary take on traditional luxury that is as welcoming as it is desirable.

Bal Harbor Shore: Miami Beach’s house in the clouds

Bal Harbor Shoreline

Other opportunities for investors are currently under construction on the Miami waterfront. Bal Harbor is a destination address, one of the most sought-after and sophisticated beaches in South Florida.

Rivage Bal Harbor is developed by Related Group and Two Roads Development, with exceptional architectural design by SOM (Skidmore, Owings & Merrill) and modern interiors by Rottet Studio. The 275-foot tower with a bright glass facade will give the illusion of a separate family home floating at sky level. The building will be expansive, light-filled and ultra-contemporary in detailed style, featuring large balconies, floor-to-ceiling windows and private elevators.

Fiscal advantages

Unlike most other U.S. states, Florida has no income tax, which provides financial benefits to homeowners. Investing in Miami Beach real estate also brings other tax benefits, including the deduction of mortgage and property taxes from federal income taxes. For those who wish to engage in long-term investment projects, these tax benefits can significantly increase overall real estate investment portfolios.

Capital appreciation

The limited number of prime beachfront properties available in the city ensures that demand will always outstrip supply of premium investment real estate. Miami Beach has seen real estate prices rise significantly over the past decade as it has become an international jet-set destination, attracting a new generation of residents and their wealth. Experts predict that property values ​​will continue to increase with substantial capital gains over time.

Liquidity

Miami Beach property owners find selling their real estate relatively easy and quick, providing an attractive liquid asset. Interest from local and international buyers in this popular global city is ongoing. Unlike other investments that can take time to convert into cash, well-located properties in a popular destination can be relatively easy to sell. Miami Beach real estate owners manage their investments effortlessly and flexibly.

Way of life

Miami offers a rare blend of superb lifestyles and wealth opportunities. The city offers vibrant nightlife, fine dining and cultural events throughout the year, as well as a healthy lifestyle with the beach and sun at your fingertips. Homeowners can take advantage of the city’s diverse offerings while maximizing their potential returns on investment.

Entry for British citizens retiring to the United States

For those looking to retire to the US from the UK without obtaining a green card (permanent resident card) or marrying a US resident, there is another route: applying through the Green Card (Permanent Resident Card) program. EB-5 investor immigration. This requires a minimum investment of US$500,000 in a US company. This is not a retirement visa per se, but a popular route for many retirees.

Conclusion

The popularity of Miami Beach and its vibrant, opportunity-filled real estate market are ideal not only for experienced investors, but also for beginners looking for safe, attractive havens and ways to join a thriving coastal community of real estate investors .