According to the latest Census Bureau data on the American community in Miami-Dade County, it was revealed that 69.1% of its population is of Hispanic origin. This phenomenon raises a number of questions about the appeal that the state of Florida has among Latin Americans.
For many, quality of life is the trigger, with Florida regularly ranked among the best livable states, with a warm climate, beautiful beaches, a variety of health care services, education and an abundance of recreational activities. During 2022 alone, Florida reached a record 137.6 million tourists, which represented an increase of 5% and 12.9% compared to 2019 and 2021, as announced by the state governor Ron DeSantis. This boom in tourists and new residents would help maintain strong demand for rental properties in the area, according to experts.
The area’s success is confirmed by Florida Realestat, which reported that nearly a million people moved to Florida between 2020 and 2022, with the local population growing at a rate 5 times the national rate. which would contribute to the economic prosperity of the sector and more real estate development.
But who among the Latin Americans would be interested in acquiring real estate as an investment in Florida? YesAccording to data provided by the National Association of Realtors, Chileans represent 3% of the total number of investors in Florida, coming close to countries such as Canada (25%), Colombia (9%), Argentina (7%), Brazil (6%), and the corresponding percentage investment in the United Kingdom.
This is according to the real estate company Owny, a national capital company with 15 years of experience in the United States “We could observe that Chilean investments increased by three digits compared to the previous period. It was a growth driven by the political and economic situation in Chile in recent years. They are middle class people, not necessarily high net worth, who are trying to protect their savings and dollarize them for the sake of the stability of the United States and its currency, Many of them prefer to buy land to then build and rent, which gives them a return that allows them to comfortably repay the agreed loan, a reality that is almost impossible in Chile.”
Among the products that are gaining more acceptance from citizens who want to diversify their savings, with low investment and high profitability, are feedlots, where the average annual profitability is between 8% and 10% per year, according to the real estate company. According to Owny, the area’s tax advantages, prices, infrastructure and rate would be the factors that generated a lot of interest among Chileans. “The mortgage interest rate in Florida is very attractive. Additionally, the cost of acquiring land in this area is approximately $20,000, a figure similar to the purchase of land in Chicure 15 years ago. On the other hand, building a house for rent in Florida can reach $350,000, while in Chile a property with similar features in design, construction and location would cost 50% more.” Regarding rental laws, the expert adds, “Florida has relatively favorable regulations for landlords, which can make investing in rental properties more attractive,” mentions Alan Ferszt, company manager and founder Own.cl
According to the real estate agency Owna, one of the emerging areas in which Chileans and Latin Americans would be most interested would be South Florida. Last year, foreign buyers acquired properties in this sector worth $6.8 billion, up 34% compared to 2021.
Own.cl Due to high demand from Chileans interested in investing in the United States and to democratize the nation’s investment options, it has created a new business unit to build rental homes in Southwest Florida “We are aware of the growing interest in dollarizing savings in a safe economy like that of the United States states, and we also know that there is a lot of misinformation on this topic, that’s why we created this business unit to help all people achieve their dream of buying their property easily and without the need to have a large property,” says Alan Ferszt, manager and founder companies Own.cl
Why is buying and renting real estate in Florida as good as Chile?
1. At the dollar peak, one could say that buying real estate in this currency is a bad decision, however, it is just the opposite, when investing in dollars, the money is diversified and the return on investment is greater.
2. Buying land is considered a low investment and does not require housing or maintenance costs.
3. If you want to build a house for rent, the value can be 50% cheaper than in Chile
4. Dollarization of investment generates substantial capital gains and the United States has one of the safest economies in the world
5. Florida is a popular tourist destination, which means short-term rentals are in high demand
6. Low taxes and operating costs: Florida has one of the lowest property taxes in the United States
7. In the state of Florida, rental costs are not regulated by law. Landlords have more freedom to increase the rent price. Real estate values escalate rapidly due to high demand and low supply.
8. Constant high demand from people looking for properties to rent
What to look out for when investing in Florida?
According to Owny, Miami is a center that generates a lot of interest, but there is still a lack of knowledge when it comes to investing, for this reason, experts provide the following recommendations:
1. Get advice from an expert.
2. Know what the purpose of the purchase will be, whether it is an investment or housing.
3. Clarify the costs associated with this type of purchase.
4. Understand the legal requirements
5. Know the area where you will invest
6. Change the paradigm today you can safely invest in another currency