Miami has become a “local gateway” much like New York and San Francisco attracting deep-pocketed investors from all over the world. According to the Profile of International Buyers in Florida, prepared by the National Realtors Association, nearly one in three international transactions in Florida are in the Miami or Miami Beach area. 70% of those are from Latin America and the top three countries of origin are Venezuela, Argentina and Brazil.
However, it’s also important to point out the demographics of international sales in all Florida. The top foreign buyers remain Canadians. Canada accounted for 31% of the total international purchases, followed by Latin America (including Mexico) and the Caribbean with a total of 35% of international purchases. Western Europe accounted for 22% of the total international purchases.
Having said that, it’s important to know where Latin American buyers are moving to, what type of homes they are purchasing and why. Demographics show that
Buyers from Brazil:
59% of Brazilians that move to Florida move to a central city or rural area and 16.1% of them are purchasing homes of 1 million or more. About 42% of their homes were for vacation, while about 15% also purchased solely for rental or investment purposes. In addition, almost half of Brazilian buyers were concentrated in metropolitan areas such as Miami and Miami Beach.
Buyers from Venezuela
74% of Venezuelan buyers favored properties located in central cities or urban areas, and 2.9% of them are purchased homes of 1 million or more. The use of property was split among using it for vacation and investment purposes with a total of 26% each. In addition, the most popular destination was Miami and the Miami Beach area with a total of 67% of the Venezuelan buyers.
Buyersfrom Latin American, except Brazil and Venezuela –
49% preferred to purchase a home in a central city or an urban area and 2.6% of them purchased homes of 1 million dollars or more. Almost 40% of Latin American buyers use their property for rental and investment purposes. To add, the most popular destination was Miami and the Miami Beach area with a total of 65.8% of the Latin American home buyers.
Top 5 reason why people leave their countries to come to Miami. (Miami Herald)
1. Financial Reasons:
Interest rates and high Inflations in their country made financing riskier and more expensive than in the United States, which makes Miami real estate a safe place for people to park their money; foreign nationals are looking for a stable environment to invest their dollars.
2. Political: - Foreigners are also looking for a potential getaway to escape to for political reasons in their country. The Main buyers doing this are Venezuelans.
The buying began when Hugo Chavez started running the country in 1998. This Socialist president was considered a hero among the working-class, many wealthy Venezuelans hated him. The fears of unrest surrounding his October 2012 reelection triggered another infusion of Venezuelan cash into the Miami real estate market. Local real estate agents joked at the time that Chavez should have been named Miami's "Salesman of the Year,"
Also, the government in Argentina has growing government restrictions on dollar transactions and withdrawals which is another incentive for Argentines to purchase real estate property on U.S soil.
3. Safehaven for their families/safe
Latin American people are buying in the U.S. because of increasing crime in major urban centers, increasing robberies and insecurity in their countries. Although the vast majority of U.S. citizens may not consider Miami to be the safest destination in Florida, when foreign nationals compareit to their Latin American countries it is.
4. You get more for your money
Many Brazilians agree that for the same price of something that you buy here, you're going to have to pay three times more to get in the best neighborhood in Sao Paulo or Rio. And you're going to get better quality.
5. Immigration options
Some Argentine diplomats in Miami say it’s the result of effective property offers by real estate brokers and the availability of investor visa programs under which foreign nationals can invest $500,000 and get a conditional green card.