Despite facing challenges such as a fluctuating economy and a weaker US currency, Latin Americans continue to invest in Miami properties. Among the foreigners buying in the city, approximately 15% are Argentines, 11% are Venezuelans, 9% are Colombians, and 8% are Brazilians, with Mexicans and Peruvians also contributing to the landscape. The promising real estate market in Miami attracts investors from around the world, particularly from Latin America, with mortgage loans for foreigners readily available.
Why do foreigners invest in Miami?
Foreigners, on average, invest around US$340,000 in a property in Miami, attracted by the profitability of transactions, which typically range from 3% to 6%, according to the Miami Association of Realtors. Many investments are made to protect capital, especially given the economic volatility and political crises in some Latin American countries. Investing in Miami is seen as a safer option. By putting down an initial percentage of the property value and securing a mortgage loan, foreigners can safeguard their investment, save money, and bet on a brighter future.
The types of investments vary, with 80% of foreigners opting for luxury residential properties. The remainder invest in rental homes, offices, or franchises. Miami’s multicultural environment, stunning beaches, vibrant nightlife, and emergence as a hub for technology and commerce offer a wide range of investment opportunities.
How do foreigners obtain mortgage loans in Miami?
While many foreigners invest in cash, some rely on mortgage loans. Financial institutions consider several variables,
Nationality
Type of property being purchased
source of income
Liquidity Source
Mortgage loan rates for foreigners are typically low, ranging from 4.5% to 5%.
Visa, based on your nationality (at least a valid tourist visa), and a copy of your passport.
In the case of condominiums or townhouses, between 30% and 35% of the value of the property is usually requested as a down payment.
Proof of income and liquidity (for example, movements in bank accounts, reference letters, salary receipts, etc.)
What are the options for mortgage loans for foreigners?
When applying for mortgage loans, foreigners can choose between bank mortgage loans, which offer lower interest rates but less flexibility, and mortgage loans from private investors. The latter option is common, offering customized solutions with quick approval processes, usually within 7 days, and minimal bureaucracy. Given the fast-paced nature of the Miami real estate market, acting quickly is crucial to seize opportunities.
Miami: A Magnet for Foreigners
Miami’s cosmopolitan nature, evident in its art, gastronomy, music, and daily events, attracts foreigners seeking a better quality of life or a safer place for their investments. Regular tourists tired of high holiday rents often choose to invest in Miami properties for long-term benefits. Miami will continue to be a top choice for foreigners seeking an ideal vacation spot or a secure location for business investments.