Miami, the tropical oasis of South Florida, is one of the most sought-after tourist destinations on the east coast of the United States of America. The unmistakable skyline of the city overlooks the immense stretches of beaches of Biscayne Bay, bathed by the crystalline waters of the ocean, while the inner districts are distinguished by the characteristic art deco-style buildings. About 13 km from Downtown, the center of the city, is the Miami International Airport. The metropolitan area includes the municipality of Miami Beach, probably the most renowned area in the area, thanks to the splendid coastline and the luxurious boutiques of the main street, Ocean Drive.
Downtown, the district of wonders
Downtown, is the main district of the city of Miami. It represents the heart of economic life, thanks to the presence of the headquarters of important corporate brands, offices, and shopping centers, housed on the different floors of imposing skyscrapers. Among these stands the Miami Tower, a symbol of the city, characterized by a particular architecture with spiraling shapes, illuminated at night by lights with changing colors. The Freedom Tower, on the other hand, was built on the basis of an aesthetic that reproduces the Latin style of the octagonal tower of the cathedral of Seville and houses the headquarters of the Museum of Art and Design.
The Bayside Marketplace shopping center is the busiest in Miami, a building spread over two floors where the most varied services are offered including shops, restaurants, and art boutiques such as the Effusion Gallery. Every street Downtown is enriched by the presence of fascinating places, such as the Olympia theater, a theater dating back to the 1920s and recently restored, or the Bloom Skybar panoramic bar, from which you can admire suggestive sunsets.
Little Havana, a fragment of Cuba in the heart of Miami
West of Downtown is the quaint neighborhood of Little Havana, whose majority of the population is made up of citizens of Cuban origin. Among the streets that branch off from the main street of Calle Ocho, a unique atmosphere hovers, able to transport visitors into a colorful landscape where the lifestyle is marked by the rhythms of the Cuban culture. Music, typical restaurants, and crafts, in this neighborhood every aspect of everyday life is aimed at giving its inhabitants and customers a true reflection of the Caribbean island.
The beaches, between surfing and social life
Miami’s main attraction is its beautiful beaches. Hobie Beach is unanimously considered a surfer’s paradise, thanks to the waves that characterize this stretch of sea. The most famous area for the presence of immense stretches of white sand is definitely South Beach, in the municipality of Miami Beach. In addition to being one of the most important residential areas, its coastline is distinguished by the clear ocean surface, shallow waters, and soft sand, which make up the ideal setting for moments of relaxation but also for fun.
In fact, South Beach hosts many clubs such as the famous Nikki Beach, located right in front of the ocean. Other clubs are scattered along the famous Ocean Drive maritime road, which stretches between rows of palm trees and characteristic art deco buildings. On the eastern side of Ocean Drive is Lummus Park, a pretty, very popular city park, consisting of large lawns, palm trees, and sports fields.
Real estate investments in the Magic City
The Miami real estate investment market is among the most prosperous in the last year, enjoying constant growth, particularly in the luxury sector. According to the Knight Frank report, the price of luxury real estate in Miami grew 10% in 2022, after a staggering 21% rise in 2021. Just last year, this magic city recorded an all-time high in real estate sales, thanks to the characteristics of this market, able to attract an audience of international investors.
The economic and building development of Miami, the advantageous tax policies, and the high quality of life are the winning factors of a remarkable positioning in the global ranking of the investment sector. Miami is one of the locations in the United States with the largest number of foreign banks present on its territory, the second metropolitan area of the nation for rapid growth, and the fourth richest city in the world in terms of purchasing power. In addition, there are over forty universities among the most prestigious in the United States, such as Florida International University and the University of Miami, which boast an international student population.
The main investments concern the purchase of a property in order to obtain a rental income, the possession of a residence where you can personally stay in view of work commitments in the area, or to obtain a house that constitutes the first or second residence, in a location characterized by a stable market and a high quality of life.
The types of properties most suitable for investment in Miami are properties located in condominiums, especially penthouses. The most successful market is that of luxury residential, whose characteristics mostly concern exclusivity, panoramic view, privacy, and quality of architectural materials.
The areas of Miami where investing in the most fruitful way are first and foremost the Downtown district, in the center, and the municipality of Miami Beach, where the most sought-after properties are those overlooking the sea.
Downtown is a neighborhood characterized by exponential demographic growth accompanied by a progressive increase in individual incomes and the employment rate; as a result, the demand for housing has also increased. The Miami Beach area obviously stands out for its higher prices, justified by the privileged position facing the ocean. Other areas of Miami affected by new investment opportunities in luxury properties are the area north of Bal Harbor, Brickell, Pinecrest, Coral Gables, Fisher Island, and the Aventura neighborhood.
Rules, prices, taxes. Making an investment successfully
Miami is reputed to be an advantageous location from a tax point of view, despite the tax on the ownership of property reaching 2%, surpassing other important realities of the US real estate market. However, it must be taken into account that there is no income tax in this city. In addition, for residents, the Homestead Exemption Act reduces the taxable value by $ 25,000 at the time of purchase, thereby significantly limiting the increases. This is an important reduction in tax expenses.
In Miami, the payment of capital gains tax is due only in its federal portion at the time of the sale of the property, as the state of Florida does not request it. Thanks to section 1031 of the tax code, it is still possible to defer the tax, by virtue of a purchase of a similar property. The payment would be postponed to the deed of sale of the new property, which could be purchased with the net gain from the previous sale.
The cost of owning a rental property is primarily the commission. The landlord generally pays 10% of the annual rent.
It should be remembered that the depreciation on real estate in the United States is calculated over 27 and a half years. The US government, however, taxes the assets of a foreign buyer at the time of his or her death at approximately 45%. To avoid this, a Limited Liability Corporation (LLC) and a Foreign Corporation should be created. They are company formations that can be set up in a short time and in an economic way, obtaining a significant reduction in tax expenses.