What is unusual about this property market recovery is that we have rents that are also rising fast. This is an extremely attractive combination for investors seeking to make a good income from their investment in property.
(PRWEB UK) 12 June 2013
It is no secret that real estate prices in Miami have risen by more than 21% in the 12 months to March 2013 (Source: Knight Frank Prime Global Cities Index, March 2013) in a boom that has shown no sign deflating any time soon, according to Colordarcy analysts.
Loxley McKenzie, Managing Director of Colordarcy comments, “Rising property prices are a bonus for investors, however the most important consideration is how much they can make in rent. In Florida, and Miami in particular, we have seen property prices rising rapidly.
What is unusual about this property market recovery is that we have rents that are also rising fast. This is an extremely attractive combination for investors seeking to make a good income from their investment in property.”
Analysts at Colordarcy suggest that rising rents reflect a growing trend towards renting for homeowners who suffered during the house market crash and who are still reluctant to get on the housing ladder.
According to data from real estate firm, Trulia, it is actually 43% cheaper on average to buy rather than rent in Miami (Source: Trulia RentVs Buy, 2013)which makes it all the more surprising that rents have risen 6.4% year-on-year. That figure is higher than any other U.S metro and places Miami second only to New York in terms of rental affordability.
McKenzie added, “The availability of finance to purchase property remains restricted despite the ultra-low bank interest rates in the US and there is clearly some way to go before home ownership becomes more attractive again.
Until then, Miami is becoming the main attraction for investors with cash deposits as several attractive developments come onto the market.
Investors will need to hurry to take advantage of this growth before the inevitable cooling takes place. I would anticipate that the pace of growth will lessen in 2013, however there will be the significant consolation of higher rental yields for investors to look forward to.”
The homeownership rate in the US fell 0.4 per cent to 65 per cent in the first quarter of 2013 according to the U.S. Census Bureau. This takes marks further decline from the 69.2 per cent home ownership rate in the fourth quarter of 2004.
Colordarcy are currently offering investors the chance to invest in the Coco Viano development overlooking the beachfront in Miami. The luxury one, two and three bedroom apartments are available from $220,000 / £137,500 with an estimated net rental yield of 5%.
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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