Who is buying properties in Miami?
The number of international buyers declined last year in the US, but it is still in its second highest level in recent years, according to a survey done by the National Association of Realtors 2013 Profile of International Home Buying Activity. Interest in US properties continues to grow, showing that America continues to be attractive to investors looking to park their money from fluctuating currencies in Asia and Europe. This is because in the US it is easy to purchase a property and even obtain financing.
This survey was done in the last 12 months ending in March 2013, showing a total investment of $68.2 billion, a reduction of $14 billions from the prior year. In spite of the decline in the country, Miami continues to attract and grow the influx of immigrants.
In this study of 68 countries, five of them are consistently the top buyers of properties in the US: Canada, China, Mexico, India, and Great Britain. In Miami, buyers from Canada, Brazil, Colombia, Venezuela, and Spain are the foreign nationals that do most of the property purchase investments.
Foreigners prefer different properties that the typical American, since their purchasing power is higher, and they typically buy in cash. “Brazilians love Miami because they feel quiet at home in this city full of Latin flavor” states Miami Chairman of the board, Natascha Tello, “and our relationship is tighter with Brazilians because of their choices of our city, our culture, and our lifestyle, turning our real estate market more vibrant.”
Many buyers are surprised to know that the market allows foreigners to finance these properties up to 30 years, and with interest rates that much more aggressive than the rates they would obtain in their country of origin. This way, it facilitates their purchase, and many times frees up more capital for additional purchases of investment properties that can generate income.
The purchase of a property in the US does not guarantee a permanent visa, but the interest in extending their legal stay is a constant concern for foreigners. It is important to note that there is a limit on the number of days that a visitor can remain in the USA within a three year period before taxes would accrue, and staying in the States for six months at a time is not a solution.