Foreign Investors Affect the Sale of Miami Homes
The Miami homes market is heavily influenced by outside buyers and foreign investors. The city is "the destination of choice right now for European buyers," and many New York, Chicago and Boston locals are purchasing second homes in Miami.
Many foreign investors come from Latin America, particularly Venezuela and Argentina, where they are experiencing political and economic instability. These investors are realizing that the U.S. government is "more reasonable in terms of investment."
A large part of foreign investors have taken to flipping Miami homes. Downtown Miami homes were worth $225,000 a year ago and now they can easily sell for $350,000. With prices increasing so rapidly, an investor can make a hefty profit by selling in one year´s time.
Some believe that speculators are the cause of the Miami homes price surge. Speculators buy with the hope that in about a year they can resell the property at a 60 percent or more profit. These goals may be causing the Miami market to become overvalued and that´s when fear of a bubble sets in.
Many foreign investors come from Latin America, particularly Venezuela and Argentina, where they are experiencing political and economic instability. These investors are realizing that the U.S. government is "more reasonable in terms of investment."
A large part of foreign investors have taken to flipping Miami homes. Downtown Miami homes were worth $225,000 a year ago and now they can easily sell for $350,000. With prices increasing so rapidly, an investor can make a hefty profit by selling in one year´s time.
Some believe that speculators are the cause of the Miami homes price surge. Speculators buy with the hope that in about a year they can resell the property at a 60 percent or more profit. These goals may be causing the Miami market to become overvalued and that´s when fear of a bubble sets in.
