Top 5 tips for foreign investors in South Florida

Since 2006, the fluctuations in the United States real estate market have been focusing around South Florida, transforming it into one of the top investment opportunities in the US. Taking this into consideration, many foreign investors have seen this area and its surroundings as the perfect opportunity to secure their assets and produce an extra income. However, the investment process involves some steps that might become a little more complex for non-native property owners. That is why, if you’re a foreigner, we want to share 5 tips for you, to help you start your journey in South Florida’s real estate business.

 

 

1. Be realistic: some marketing professionals might try to sell the luxury + bargain image (90,000$ beachfront apartments, for example), when in reality those expectations are far apart from the actual projection of the market. To develop a successful business in Miami, foreign investors must be aware of the fact that any contract that is worth the cash, will be closed within a week or so. To see results in terms of 5 to 10 years, being willing to invest realistically (however obvious it might seem) is essential.

 

2. If possible, work with corporations: investing under the name of a Limited Liability Company (LLC) or a Corporation simplifies the tax payment process and the inheritance procedures in a long-term period. Otherwise, the tax rate for a non-native owner, in case of any extraordinary event, would be too high. These corporations can be foreign, domestic, or might even be presented in the form of a trust fund.

 

3. Be aware of the bureaucratic proceedings: even though the process in the United States has proven to be pretty simple, there are certain requirements for foreigners and non-residents. Some of them, like the TIN (Taxpayer Identification Number), imply a bit of a procedure (filing an application and providing all the ID specifications: passport, driver’s license, birth certificate, then sending it to the respective offices, etc.).

 

4. Find the best professionals: for the completion of the previous step it is necessary to have experts, such as US Tax attorneys, Real Estate attorneys, accountants, brokers, and buyers who are committed to your business and watch over your safety.

 

5. Ask Questions: once you have found the best possible team, be prepared to ask some of the following questions: What if I carry out other businesses in the US? Is there some type of tax alliance between my country of origin and the US? These might be very helpful for you and the professionals that guide you.

 

In South Florida, we keep these 5 tips at the top of our heads. We are prepared to receive you, answer all of your questions and guide you through your investing process! Contact us!

Natiivo has arrived to transform the real estate market

Airbnb has launched its new business model, Natiivo, where investors will be able to buy and rent their unit, or part of it, as if it were a hotel room.

Arquitectonica, one of the most important urban planning and interior design firms in Miami, will be the brain behind Natiivo's design.

The 50-story luxury tower will feature 415 1-4-bedroom units ranging from 410 to 2,200 square feet of modern, elegant interiors created by Urban Robot Associates, known for “telling stories by creating places”.

 

Located in downtown Miami, it will offer 55,000 square feet of the best amenities.

•  Exotic resort pool with pool-side cabanas.
• ·Bar and grill on pool deck.
•  24/7 co-working lounge.
• Private meeting rooms and event room with exclusive terrace.
• Fully equipped, state-of-the-art fitness center with HD TVs and wireless audio.
• Private Peloton studios.
• Yoga lounge and terrace.

This initiative increases Airbnb's residential rental market and adds real estate development to its portfolio. During the initial phase of the project, prices start from US $300,000 to US $1.2 million.

 It is undoubtedly one of the best options to invest in Miami. Natiivo; the new way to own and stay.

Real Estate Market on 2017-2018

The real estate market is the most stable one. It’s a fact that a real estate investment is a safe investment. But in order to make it safe, you have to make it right. From some time now there has been a lot of talk about a global economic recession estimated for 2017-2018. By that time, Miami Dade will be completing a lot of new buildings that are great investing opportunities.

So, you might be wondering how to act knowing about this possible recession. Well, prices are going down in all of Miami Dade County, so there will probably be a lot of good opportunities for investors by 2018 in the high-end market as the prices start to adjust and it’s prudent to wait and buy then. However, for 2017, we recommend investors to make small investments and buy $150K units, which they should rent with a long-term mindset.

A low income unit is a wise investment if there is a recession since these cheaper units may not go down in demand. In case of a recession, there may be more demand for rental if people are making less money in the next 3 years, which is why they’ll look for cheaper residences to live and renting is always more accessible than buying with a lower salary.

Therefore, be wise and invest wisely. The real estate market is a safe one if you play your cards well. Gables Riches offers all kind of assessment in this kind of matters. Don’t hesitate to contact us if you’re looking forward to go ahead on time and make right decisions for your money.

Property Management Services

Investing on a property is no easy thing to do and it shouldn’t be taken lightly. You are about to put your money in some serious business. This is why Gables Riches always recommends you to invest hand in hand with a professional. A little advice will help you make the best decision and will increase the chance of future profits from your investment. But, once you have already invested, then who’s taking care of that property? This is the time when the owner should think about hiring a property management company.

Here are 5 reasons why you should hire a property management company:

1)    Workflow: most investors have no idea how much work it takes to own and manage their investment. Property inspections, staffing maintenance personnel, and other issues that may arise in the day-to-day of owning a property take up a lot of time from you. To avoid this, a property management company will take care of it all.

2)    Legal issues: there are lots of local, state, and federal laws to consider when you collect rent and deal with property management. A property manager will make you stay on the right side of the law.

3)    Rent collection: most real estate investments are to obtain money from them. Collecting rent money is probably the least glamorous aspect of all, leave it in a property manager’s hands.

4)    Marketing expertise: property managers know how the real estate market runs and will help you obtain the highest possible rent and avoid long vacancies on your property.

5)    Tenant issues: regardless of the type of property you’ve invested on, it’s probable that sooner or later you’ll have issues with your tenants. Late rent payments or squabbles between neighbors, they can all give you sleepless nights unless you hire a property manager who takes care of it all.

Top 7 Properties to Invest

Choosing the right property to invest on is not an easy task. There are so many details we have to take into consideration before deciding which one we should buy. If you are looking forward to investing on real estate, America Riches will help you make the right choice. We want your happiness and your money to be safe. So, if you are thinking on real estate investments, here’s a list of the top 7 properties you should consider.

Student housing

1.     Senior housing: this kind of property is experiencing an upward demand. Its renting rate is increasing daily. This type of property offers the best risk and return profile right now.

2.     Student housing: at the beginning of 2016, the pre-tax yield for student housing properties was 7.6%. An investment on student housing is generally in line with long-term trend, it is the best performing sector year-to-date in the REIT space.

3.     Suburban office: office vacancy has dropped 20 basis points in 2016. This means job growth and therefore economic stability. Investors should consider suburban offices, since they are one of the few property types that are showing recovering growth.

4.     Flex big-box warehouse: this is one of the healthiest industrial sub-sectors, driven by demand for e-commerce tenants.

5.     Self-storage: this sector is becoming more accepted as an institutional asset class. Right now, it’s showing higher cap rates, solid NOI growth, and low cap-ex. Self-storage is pleasing great income expectations.

6.     Neighborhood Community Centers: this type of property, just as fortress malls, is very powerful since it’s carrying the retail asset class. The firm rated neighborhood community centers with 6.4 out of 10.

7.     Street retail: this type of property has been a very trending one on the past few years, with cap rates in gateway markets dropping below 3%. There has been a recent uptick demand on street retail spaces.

Street retail

Flex big-box warehouse