Miami makes list of Top 10 US Metros for downsizing your home | Real Estate
Thinking about downsizing your place of residence? For many homeowners, such a move could earn significant savings in the process, especially in the Miami area.
Research by the folks at StorageCafe, showing how much homeowners can save by downsizing, indicates such a move can generate at least $190,000 in savings on average in Florida.
In the Miami Metro area (which includes Pompano Beach and Fort Lauderdale), savings can hover around $322,000, according to the report, with a tax savings of $24,558. That area ranks seventh among the largest U.S. metro areas, with the most savings found in the San Jose-Sunnyvale-Santa Clara, Calif., area. The Sarasota area ranked ninth.
For Miami proper, the report calculates a savings of $218,000 by downsizing locally.
The report by StorageCafe, a nationwide storage space marketplace that spots trends in real estate and re-locations, analyzed the country’s 100 largest metros, taking into account the price difference between a 4-bedroom home and a 2-bedroom unit (a classic move for empty-nesters); property tax savings over a 10-year period; as well as selling and buying closing costs for both houses.
James Salas, president at E Realty International on Key Biscayne, said he has seen a trend in downsizing, but for a reason.
“I have seen a downsizing trend in the Miami real estate market, mainly due to owners that are nearing, or at, retirement age,” he said. “This is good news, since it brings a good supply of inventory and helps stabilize the market.”
Zooming in on the Miami region, this is what the StorageCafe report uncovered:
– For the Miami metro (Fort Lauderdale and Pompano Beach included) area, the overall downsizing savings that homeowners can potentially pocket hover around $322,000, with a tax savings of $24,558.
– Homeowners in the city of Miami proper can save about $218,000 by downsizing locally.
– Downsizing between two specific cities within the metro area, on the other hand, can bring homeowners significantly more. Those willing to relocate to a smaller home in Hialeah, for instance, can reap the biggest financial benefits: downsizing from Fort Lauderdale to Hialeah results in average savings of almost $820,000, while leaving Miami for a smaller home in Hialeah has the potential of saving homeowners more than $465,000.
Alejandro Perez Duque, CEO of PVG Insurance Group on Key Biscayne, said he’s not a real estate agent, but from what he’s seen so far from his wealthy insured clientele is there really hasn’t been that trend to downsize.
“Downsizing in Miami? I’ve probably seen the opposite,” he said. “People are spending more time inside their home these days and they need the extra space.
“If you already have a nice apartment, say on the 12th floor, for instance, you might decide to buy a smaller apartment on the third floor, and use that as your office. You won’t be driving as much, your team members can meet there … it’s a better use of their money. And when you decide you don’t need it, you can sell it for a good profit.”
Top U.S. Metros with Biggest Potential Savings from Downsizing
1. San Jose-Sunnyvale-Santa Clara, CA
2. San Francisco-Oakland-Berkeley, CA
3. Urban Honolulu, Hawaii
4. Bridgeport-Stamford-Norwalk, CT
5. San Diego-Chula Vista-Carlsbad, CA
6. Los Angeles-Long Beach-Anaheim, CA
7. Miami-Fort Lauderdale-Pompano Beach, FL
8. Seattle-Tacoma-Bellevue, WA
9. North Port-Sarasota-Bradenton, FL
10. Oxnard-Thousand Oaks-Ventura, CA
