Where the Magic Numbers Add Up to Investing in Real Estate

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By Amanda Sharpe, Property Content Writer, Deborah Battsek PR

 

 

 

 

Miami, known as “The Magic City”, is where the world’s richest choose to invest in real estate. Based on the volume of transactions over US$10 million per annum, Miami ranks as the fifth most important property market; only London, New York, Los Angeles and Hong Kong place higher.

Last year in the Magic City, around 146 luxury residences sold for $10 million plus, and there were 23 recorded real-estate deals at $25 million. Ultra-high-net-worth individuals (UHNWIs) have been very active—including Kenneth C. Griffin, a billionaire hedge-fund manager who purchased two glamorous homes for more than $150 million combined.

Miami is much more than a tourist destination with its beautiful beaches and bayfronts; a sunny, warm climate; and a vibrant culture that reflects Florida’s laid-back lifestyle with a metropolitan sense of excitement, although this backdrop has certainly contributed to the strong rental appetite. Known as a luxury holiday destination to a steady tribe of tourists, it is also home to expatriates, young professionals and entrepreneurs. Such a varied surge of incomers has driven the demand for quality rental units in the city’s desirable residential areas. Investors have seen their rental investment properties provide excellent yields throughout the past year. Figures produced by Zillow show that in Miami Beach, the median rent is $1,200 higher than the national median.

The real-estate sector has always capitalised on those elements that make Miami feel like a prize offering, and this has been reflected in the volume and variety of investment opportunities and big-name developers stealing slices of the Miami property pie. Rarely a day passes without a big-time developer making headlines for acquiring a site, transacting on a building for redevelopment or launching a state-of-the-art luxury residential scheme in a prime location.

So, who are some of these major real-estate players, and what are the biggest benefits of owning condos, apartments and beachfront villas in Miami Beach?

Big-property fishermen cast their nets on Six Fisher Island

 

In search of perfect examples of current residential master plans under construction, investors need look no further than the exclusive 216-acre Six Fisher Island off Miami Beach. The globally renowned Related Group has jumped in with a proposed 50-unit, ultra-luxury condo complex. Penthouses are expected to cost more than $60 million, and regular units will likely start at $30 million. The sizes of the units at Six Fisher will range from 3,800 to 12,000 square feet with three-to-five-bedroom floor plans.

Miami’s sophisticated district attracts sporty retirees who want to pursue active lifestyles after reducing work commitments. Related’s Six Fisher Island development will reflect this emphasis on health and well-being by offering state-of-the-art fitness and health-restoring amenities, together with a 4,800-square-foot roof deck complete with an infinity-edge pool, picturesque ground-floor pools, 17 tennis courts, four pickleball courts and a P.B. Dye golf course.

Jon Paul Pérez, president of Related Group, commented:

“At Related, we strive to continuously surpass the needs and wants of our diverse buyers. As the concept of ‘retirement living’ evolves and changes, we’ve worked hard to ensure our on-site lifestyle amenities stay one step ahead. For example, at our most high-end properties, like Rivage Bal Harbour Residences and Six Fisher Island, we’ve incorporated amenities that promote a more active lifestyle. Both properties have state-of-the-art fitness amenities that encourage low-impact activities, such as a multi-sport simulator, tennis courts, pickleball and paddle ball court[s], as well as multiple swimming pools. We’re confident that these offerings will contribute to a healthier, happier and more active way of life that perfectly caters to this demographic.”

Given the exclusivity of the island community, it was no surprise when Related Group brought in internationally respected interior designer Tara Bernerd & Partners to contribute to their signature style of approachable luxury, timeless elegance and connection to locations, imparting a sense of place.

Tara Bernerd, founder of Tara Bernerd & Partners, remarked:

“Fisher Island is a unique escape, a home-from-home that is at once connected, yet set apart from Miami. At Six Fisher Island, we have brought a fresh perspective to reflect the exclusive nature of the island, with its well-travelled, sophisticated, design-savvy residents. We have sought to bring a very layered, considered feel to the residences and the extensive amenities that the property will offer, a contemporary take on traditional luxury that is as welcoming as it is desirable.”

Rivage Bal Harbour: Miami Beach’s home in the clouds

More opportunities for investors are currently under construction on Miami’s beachfront. Bal Harbour is a destination address—one of the most desirable and sophisticated beach locations in South Florida.

Rivage Bal Harbour is being developed by Related Group and Two Roads Development, with outstanding architectural design by SOM (Skidmore, Owings & Merrill) and modern interiors by Rottet Studio. The 275-foot tower featuring a luminous glass façade will give the illusion of a separate family home floating at sky level. The building will be expansive, flooded with light and ultra-contemporary in detailed style, complete with large balconies, floor-length windows and private elevators.

Tax benefits

Unlike most other US states, Florida has no state income tax, which offers financial benefits to property owners. Investing in Miami Beach real estate also brings other tax advantages, including deducting mortgage and property taxes from federal income taxes. For those who want to commit to long-term investment plans, these tax benefits can substantially boost overall real-estate investment portfolios.

Capital appreciation

The city’s limited amount of available prime beachfront property guarantees that demand will always exceed the supply of superior investment real estate. Miami Beach has seen real-estate prices increase substantially over the last decade as it has become an international jet-setters’ destination, attracting a new breed of resident and their wealth. Experts predict that property values will continue to rise with substantial capital gains over time.

Liquidity

Property owners in Miami Beach find selling their real estate comparatively easy and quick, providing an attractive liquid asset. Interest in this popular global city from local and international buyers is continuous. Unlike other investments that may take time to convert into cash, well-located properties in a popular destination can be relatively easy to sell. Miami Beach property owners manage their investments effortlessly and flexibly.

Lifestyle

Miami offers a rare blend of superb lifestyles and wealth opportunities. The city boasts exciting nightlife, fine dining and cultural events throughout the year, as well as a healthy way of life with the beach and sunshine on tap. Property owners can enjoy the city’s diverse offerings while maximising their potential investment returns.

Entry for UK citizens retiring to the US

For those seeking to retire to the United States from the United Kingdom without the benefit of a Green Card (Permanent Resident Card) or marriage to a US resident, there is another route: applying via the EB-5 Immigrant Investor Program. This requires a minimum investment of US$500,000 in a US enterprise. It is not a retirement visa per se, but a popular route for many retirees.

Conclusion

The popularity of Miami Beach and its dynamic real-estate market full of opportunities is ideal not only for experienced investors but also for newbies looking for safe, attractive havens and avenues to join a thriving coastal community of real-estate investors.