Miami, well-known for its white sandy beaches and a year-long summer, is also known for its real estate market. Who wouldn’t want to buy in the Sunshine state? People may choose to buy and live in Miami, potentially seeking to sell the property in the future and gain a profit or simply to buy without living here for potential rental income. The options in Miami are abundant. Yet, there are several important factors to know before making your purchase.
Choose the Location
It is important to conduct research and get familiar with the Miami area to understand market trends in the region. A potential investor may choose to purchase a single-family home away from the beach or next to a canal. It is important to note the details around the association that may manage your unit. As an example, a condominium unit may be allowed to be rented out only 12 times per year, meaning that the shortest time frame a tenant may rent for is a month. This will yield the greatest return for the investment. If such a unit had it’s 12 tenant limit reached by month 8 in a given year, the unit will have to remain vacant for the remaining 4 months, resulting in a potential loss on the investment.
Best Value for the Money
A typical comparative market analysis will show there isn’t a direct correlation between the property price and potential rental income. While it is safe to say that as the price of a property increases, so will the rent payment. But some investments will prove to be better than others. Basic calculations, such as return on investment and price per square foot, should be taken into consideration.
Conducting research around the expenses associated with the investment is key. The amenities, for example, significantly vary from one property to another. The structure and condition of the property should also be taken into consideration, where any defects will have to be immediately addressed.
It is recommended to work with an agent who will help you choose the correct property after conducting proper research. For more useful information such as exploring locations or floor plans, please contact us.