Governments change, economies shake and Miami remains solid

2017 is a year full of expectations for some, doubts for others, especially when it comes to investing in Real Estate. But as history has shown us, markets go up and down, but they ultimately stabilize. That’s not the case for South Florida; apparently, this region of America is somehow “bullet-proof”. Maybe we are exaggerating, but what we can say for sure is that all the employment policies and immigrant matters will not negatively affect the housing market in this region; governments change, economies shake and Miami remains solid.

In 2016, many experts predicted an implosion of the Real Estate market in Miami, and by the end of the year, it turned out to be just a slowdown. Of course, this might discourage some new investors, but after all the growth that this town has seen in the last years, a slowdown isn’t much of a problem for most investors. Experts suspect this slowdown happened because of the November elections, and it’s just the beginning of an upward cycle; in other words, the market took a deep breath last year.

 

On the other hand, 2017 is not going to be the year for constructors, since financing has become harder than in the past. Still, this is no reason to worry; there’s still plenty of choices for investors looking to put their money on Real Estate in Miami. Last year, many sellers paused their properties and decided to rent only, while investors held their breath until the election was over. Now, at the beginning of the second quarter of the year, the foggy expectations are starting to look bright once more.

Talking about immigrants, we all know South Florida has one of the highest immigrant populations in America, especially latinos. Illegal immigrants are quite a topic nowadays, and there’s a lot of speculation about this, but the truth is, this matters don’t apply (at least not directly) to the Real Estate market. Many investors in Miami and its surroundings come from Central and South America, but most of these people are buying their second home. This means they are looking for legal ways to get American Citizenship (if they actually want it at all). While immigrant policies might affect the economy in other ways, the Real Estate market doesn’t shake to this matter.

Tell me where you want to invest and I’ll tell you which type of person you are

After many years in the Real Estate business, with a growing client list and a constantly changing market, we can now say with some accuracy which is the average profile (or stereotype) of an investor here in South Florida. We can tell a lot about the type of person you are just by knowing where and how you want to invest!

Let’s take Coral Gables, for example, and make a quick review. It’s a city made with great taste, it has a solid history (Spanish ancestors and Spanish architecture), it features sophistication, luxury and a relaxing atmosphere. Now let’s talk about numbers. Population: over 50,000. Median household income: $93,000. Median age: 41 years old.  95% of Coral Gables population has a high school degree and 61% has a bachelor degree, which is one of the highest rates in the area. This is just some great stuff about this city but there’s plenty more.

Most people investing in Coral Gables nowadays are doing it for profit, or simply getting a second home at a beautiful place (one that looks like a vacation spot). Many immigrants put their minds in this city, and what most of them have in common is that they are looking for a legal immigration status (if they are looking for it at all), and a high percentage of these investors are business men and women with a high level of education. In the particular case of Coral Gables, a place where the median age goes around 40 years old, people who come to live here are men and women with families (married with children).

The profile for the type of person who wants to invest in this area is starting to look quite sharp, and this is just a glance. To conclude this statement, let’s separate the people who want to invest in Coral Gables from the ones preferring Miami. The profile is actually quite similar, with one particular difference. Coral Gables is more of a retiring city. This doesn’t mean people don’t work there; it means it’s a quieter area with a slower pace, where people with a very stable financial situation can go and enjoy all the comforts of a beautiful city. On the other hand, people who prefer Miami tend to be younger (a little bit), and with the one goal in mind of making money and start settling the bases of their future. A high percentage of them are single or recently married but with no children. Miami has a faster pace and it features more business opportunities for people anxious to learn, grow and have fun all at the same time.

Of course these are all stereotypes, these are not absolutes, and at the end of the day, every person is different, but it’s important to recognize patterns when you are working in the Real Estate business, and you, as a client (or a potential client), should know what you are going to find where you want to live or invest.