Can Foreigners Buy Property In Miami?

International Buyers in Miami Become More Diverse

International buyers in Miami have become increasingly diverse. While some are interested in buying properties in their home country, others are seeking opportunities abroad. The Venezuelans were the most active buyers in Greater Miami last year, accounting for 15 percent of international sales. This trend may be due to Venezuela's three years of recession, which may have sparked an outflow of capital to Miami. Argentinians and Brazilian buyers also decreased from two to 10 percent, respectively.

Venezuela

The recent political unrest in Venezuela has spurred a surge in Venezuelan money into the Miami real estate market. Many realtors working with Venezuelans say they expect continued strong demand for South Florida real estate. If Chavez wins the election, the interest may rise even higher. In fact, many Realtors are keeping a close eye on the election.

Venezuelans are the leading group of foreign residential buyers in Miami. They are followed by Brazil and Argentina. While Venezuelans and Brazilians made up the majority of foreign buyers in South Florida, they were the largest spenders. The average foreign buyer in Miami spent $570,000. The second largest foreign buyer group were Canadians, who spent $650,000 on their homes.

If the political crisis in Venezuela continues, a large amount of Venezuelan capital is likely to stay in the U.S. This means that Venezuelans in South Florida will be buying properties for long-term investment. As a result, it will be difficult for them to leave. Some Venezuelan investors may even return to their home country to rebuild.

Argentina

The recent election of a new president in Argentina has resulted in an influx of investors from the South American country. Since the election, investors from Chile, Peru, and Argentina have begun to purchase real estate in Miami. In addition, some Colombian investors have switched their searches to existing units, due to the election.

According to Manuel Grosskopf, head of U.S. operations for the Chateau Group, a major Argentinian real estate developer, Argentina is now one of the biggest international buyers in Miami. His company has a presence in the area, including an office in Hallandale. Although his company is headquartered in Buenos Aires, Sergio Grosskopf and his wife, Manuel, live in Miami full time. After selling major mall holdings in Argentina to George Soros, Grosskopf's family has recently begun a high-profile presence in Miami. Recently, they started construction on the Chateau Beach Residences.

The Kirchner government has imposed capital controls in Argentina, which is affecting its economy. The peso is heavily taxed in the home country, and Argentines are struggling to make overseas purchases using their credit cards. Moreover, some countries even use specially trained dogs to sniff out dollars at border crossings and airports. In addition, Argentines are unable to access international credit markets and have lost confidence in their country after a $100 billion default in 2001.

Central America

The escalating foreign activity in the Miami area has paved the way for new construction cycles in many markets, and Latin American countries such as Costa Rica, Mexico and Nicaragua are emerging as major consumers. Costa Rica, for example, is one of the most sustainable nations in the world, with vast protected forests and wildlife. This region also boasts low cost of living and beautiful climates.

Recent political unrest in Latin American countries has pushed wealthy residents to seek refuge in other parts of the world. Many of them have found a new home in Miami. These newcomers have fueled a recent real estate boom in Miami. Brokers in South Florida say that this trend is unlike any other investment wave in the past.

The growing Central American value-added market is a great opportunity for US suppliers. Consumers in Central America want to purchase US products, and the Panama trade treaty has made it easier for US food products to enter the region. Meetings with Miami-based buyers are a great way to advertise to this lucrative market.

Venezuelan Buyers

According to statistics released by Internoscia, 66 percent of Venezuelan home purchases are made in the Miami-Fort Lauderdale metro area. Venezuelan buyers typically purchase homes in lower to middle-price ranges. In South Florida, the median price of Venezuelan purchases is $258,300. The majority of Venezuelan real estate purchases in 2017 were cash deals.

But in a separate investigation, federal agents seized multimillion-dollar homes, including those in Miami's exclusive Cocoplum neighborhood. The investigation also revealed bribery schemes involving PDVSA, the country's state-owned oil company. Both the late President Hugo Chavez and his successor Nicolas Maduro have been linked to the bribery scandal. Regardless of the nature of Venezuelan real estate purchases in Miami, there are many risks associated with investing in Venezuela real estate.

While it is hard to say exactly why Venezuelans are purchasing Miami real estate, they are still a desirable client base for real estate developers. Many of these investors are concerned that the leftist president Hugo Chavez will crack down on the housing market in Venezuela. As a result, Venezuelan buyers are increasingly looking to the United States, where real estate prices are considerably higher than in their native country. Harvey Hernandez, managing director of the Neward Group, said that Venezuelans make up about 17 percent of foreign buyers in South Florida's residential real estate market. His company has already sold more than half of the condo units in BrickellHouse, one of the first condo towers to be built in Miami since the real estate crash. Construction is scheduled to begin later this year.

Central American Buyers

Most of the foreign buyers in Miami are from Latin America, but this does not mean that they are the only ones. Since the recent election, Colombians and other Central American buyers have been stepping into the Miami real estate market as well. In fact, many have turned to this area in recent years as property prices in their countries have skyrocketed.

Venezuelans and Central Americans are among the top property buyers in Miami. In 2011, they represented 15% of all foreign property purchases in the city. In 2015, they represented 13% of all international buyers. Among other countries, Brazilians have also been a major factor in buying in Miami. Over the last five years, they have accounted for about 12% of all international purchases. Similarly, Argentine nationals have quietly been buying property in the Miami market.

The political turmoil in many Latin American countries has caused many wealthy residents to flee their countries. As a result, they have been purchasing luxury properties in Miami. According to local real estate brokerages, this is unlike any other investment wave in the city. Many of these buyers are turning their investment into a permanent residency.

Foreign Buyers in Miami

Foreign buyers in Miami purchase property for a number of reasons. The city's real estate market is affordable, and it is often a popular choice for people from other countries. However, some may argue that international buyers artificially inflate prices. Miami is home to a large Latin American population, with Cubans the largest group of immigrants.

There is a low supply of single-family homes in Miami, and foreign buyers compete with each other. These buyers typically opt for high-end condos, which range from $7 million to $40 million depending on the unit size. Although foreign buyers can benefit from lower prices, they should remember that the sun doesn't always shine.

Foreign buyers in Miami have been a major force in the housing market in the city for decades. Although the pandemic temporarily dampened their activity, restrictions are now easing and more foreign buyers are returning to the city to purchase a home. In fact, according to the National Association of Realtors' 2021 Profile of International Residential Transactions, nearly 22 percent of all U.S. homes purchased by foreign buyers in that period were in Florida.

The number of foreign buyers in Miami is on the rise. In 2018, the number of foreign buyers in the city rose by seventy percent compared to the year prior. This is twice as many as the thirty-five percent national average. In South Florida, the number of foreign buyers buying residential properties has increased, and Miami-Dade County accounts for the majority of international sales.