This makes property in Miami good value for cash rich investors from South America, but also those investors further up the East Coast in New York where the average price per square metre is more than double that of Miami.
(PRWEB UK) 19 April 2013
Commenting on the article, Colordarcy analysts say that the biggest draw for second home buyers is the comparatively low cost of property in Miami compared to many other cities in the USA and abroad in South America and Canada.
According to the Wall St article Empires of the Sun the number of investors from New York investing in luxury Miami property has risen as a proportion of all investors from 10% a year ago to 25%.
Loxley McKenzie, Managing Director of Colordarcy commented, “It is interesting to see that with this latest boom in Miami’s luxury market, it is not just foreign investors who are purchasing.
In the last boom much of the investment came from speculators abroad, yet this time due to the collapse of property values which took place at the time of the housing crisis when Florida was worst hit, prices fell to such low levels that we could say, prices are still recovering.
This makes property in Miami good value for cash rich investors from South America, but also those investors further up the East Coast in New York where the average price per square metre is more than double that of Miami.”
According to analysts at Colordarcy, US investors make up 40% of purchasers in some new developments in Miami.
Those investors are almost certain to have company in the form of neighbours from countries like Venezuela, Brazil and Argentina. Cash rich investors from Brazil are reported to be happy to make down payments of 80% on Miami property according to recent reports on Reuters.
Russians investors spent more than $1 billion on overseas property in 2012 with Florida a favourite destination
However it was Venezuelans who are the top foreign investors in Miami accounting for 15 percent of all sales to international buyers. They are closely followed by fellow South Americans from Brazil and Argentina.
What attracts these investors, according to Colordarcy analysts, is that prices in downtown Miami average just $400 a square foot. Compare this to the $1,000 a square foot for property in Rio de Janeiro, or the $550 for property in Buenos Aires and it is easy to see the investment potential in comparison.
For New Yorkers too, it makes much better sense to consider Miami as an alternative when the average price for a downtown apartment in New York is $1,293 a square foot.
This might go some way to explaining why holiday home sales in the United States increased 10.1 per cent in 2012.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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