Tag: invest in miami”

How Can Foreigners Invest in Miami – a Guide for Florida Investment

Florida real estate has always been attractive to foreign buyers. Luckily, the state has always held opportunities for investing in properties, especially to invest in Miami luxury real estate.

Come to think of it, real estate in this state was attractive even before the housing crash that depressed prices for both residential and commercial properties. This made foreign investment in Florida a bargain for many buyers.

This is why our luxury real estate agents are awaiting your call!

According to the National Association of Realtors, Florida has the largest number of foreign investors in the field in the country, with 41% purchasing vacation homes, 25% making a dual use purchase and 23% are investing in rentals.

Although, investing in Miami real estate is popular and widely known, there are still a few things investors should keep in mind. For starters, foreign nationals are able to purchase real estate in the country for personal use, on their own or in the name of a corporation or LLC, without any governmental agency’s involvement.

Foreign investors are also entitled to defer capital gains taxes in the country by purchasing another investment property under Section 1031 of the IRS Code. However, the actual tax treatment may depend on tax treaties between the United States and the investors home countries, if such treaties exist. This can be a rather complicated area, which is why it is advisable for investors to consult with Florida professional real estate agents on the subject before making a purchase or opt for an investment.

Investment in Private Property

If you opt to invest in property, foreign nationals who purchase large tracts of real estate in the U.S. must report that purchase to the U. S. Department of Commerce under the International Investment and Trade in Services Survey Act. The reported information must include the names and addresses of buyers, sellers and owners of more than a 50% interest, and financing information like income or expenses and similar info about the property itself. More reporting details are needed for property over 200 acres or property with a purchase price of more than 1 million dollars.

Investment in Rental Property

When it comes to rental property, foreign nationals purchasing Florida real estate for leasing purposes are subject to taxation on rental income. However, foreign landlords have two choices on how to be taxed. The first option is to pay 30 percent of gross rental receipts, or they can pay regular U. S. income tax rates on net income from the property by filing a Form 4224 with the IRS.

Other Requirements Concerning The Subject

The state of Florida has certain filing requirements for foreign nationals and legal entities purchasing real estate. Any property which is owned by a foreign business entity or U. S. corporation whose ownership by foreign nationals exceeds 10% must have a registered office in the state and an agent on file with the Florida Department of State.

If the sales tax on rents is collected, a foreign national must register as a sales tax dealer with the Florida Department of Revenue.

As you can see, investing in Miami might be a bit confusing, but nothing out of the ordinary procedures from similar matters. If you have any more questions, contact us!

June 27, 2017
How to Invest in Miami Property
From sports cars, tans, and an influx of spring breakers to high-end fashion, art, and fine dining, Miami is experiencing a cultural revolution, which is also greatly contributing to real estate investing. The Magic City is listed among world’s top 10 luxury property markets due to its excellent location, bi-lingual workforce, and high concentration of international banks. However, what sets this city apart from other top-ranked cities, such as New York, Sydney, London, and Paris, is the relative property value it offers, especially to foreign buyers. Investing isn’t necessarily a difficult trade, in fact, it is all about good timing, and Miami is currently a real estate goldmine.

Real estate investing as a business

If you are absolutely sure you want to start a career in investing in Miami property, you need to treat it like a business. Gathering sufficient and relevant information to create a sound business plan is the first thing that should be on your to-do list. Detail all of the nuances, check out your competition and their previous successes, assess your advantages and disadvantages, and create realistic short-term, mid-term, and long-term goals. Remember, a megalomaniacal approach won’t get you anywhere, especially if you are new on the scene, so it’s better to take calculated baby steps first, rather than to rush into everything immediately.

Relationship with local bank or mortgage broker

Planning finances with expert help is extremely important and beneficial. You need to find a reliable person or group willing to lend you money when good opportunities arise, so establishing a strong professional relationship with a local bank or mortgage broker will do you wonders.

Creditors and keeping tab on the score

Keeping a credit score of at least 700 or better is what can keep you in the game because no real estate investor will cooperate with you if your credit is shot. The better you score, the higher the chance you are going to successfully borrow money for investing in your properties and the less interest you are going to have to pay. Trans Union, Equifax, and Experian are excellent credit card reporting agencies to keep tabs, or use the services on Credit Karma website free of charge.

Scan for Miami properties

Scanning neighborhoods for attractive properties is something everyone should do thoroughly, especially international investors who aren’t entirely familiar with Miami. Determine what type of real estate speaks to you, what you feel can make you good money. A word of advice, stick to residential areas, since these properties are currently the best thing available on the market.

Speak with local Miami investors

If you are fresh on the Miami real estate market, there is absolutely no reason for you to do go through the entire process completely alone. Plenty of investors are doing the exact same thing as you are and they understand the struggles which need to be endured. Feel free to connect with such people and ask them for information about the landscape, hot properties, interesting facts and happenings in Miami’s realtor world. Asking for help and letting experienced people guide you will certainly pave a smoother road to success.

A few more tips
- Since every transaction is done under different circumstances, consult your attorney and accountant to create an optimal structure under which you acquire property.
- US tax laws need to be greatly considered, so it’s best to find a skilled American tax advisor who understands how the national tax code system works.
- Similar to social security number, you should also apply for an ITIN, or International Tax Identification Number.
- File an annual US tax return so you can have more insight on your property’s activity and preserve your tax losses.
Conclusion

The real estate investment process tends to be slow at the beginning and just like everything else it takes time to get the hand of things and start noticing progress. Miami is currently a fertile ground for realtor businesses, so follow these instructions, study every aspect of it from additional reliable sources, and when you finally feel ready, weigh your options and seize your opportunities.
January 13, 2017
Top Reasons to Invest in Miami

Miami has transformed from a sunny beach vacation destination into a cosmopolitan international city, and investors have noticed. The number of investors in Miami luxury real estate is on the rise, with a number of people from Manhattan and Latin America purchasing new luxury homes and condos. There are many reasons that Miami has become so popular with investors, such as:

High Quality of Miami Properties

Many new luxury properties, especially Miami condo projects, have been designed to appeal to the most discerning investors. New properties are built to the highest standards and feature upscale design and quality finishes. Condo properties offer every amenity that a person could want, from spas, fitness centers, and pools to roof top decks, lounges, concierge service, and even access to exclusive beach clubs.

Tax Benefits

One big draw for people who invest in Miami real estate is the tax laws in Florida. The state does not have capital gains taxes, estate taxes, or state income taxes, so the potential return on a luxury property is higher than in other states in the country. It is not uncommon for high-earning individuals to invest in Miami luxury properties and make it their main residence so they do not have to pay tens of thousands of dollars in state income taxes.

International Financial Hub

New York City is considered the financial capital of America, but Miami is now second. Many large companies, especially those tied to Latin America, have established headquarters in Miami, and a number of international banks now have large branches in Brickell, Miami’s thriving financial district. The financial growth in Miami is reassuring to investors, and many high earning individuals purchase luxury real estate in Miami when they relocate from other places.

Luxury at the Right Price

Miami has been named one of the top 10 most luxurious cities in the world; the only other city in North America on that list is New York City. Those seeking luxury may begin choosing Miami over NYC is the fact that the cost of living is currently much lower in Miami. While some luxury properties in Miami sell for a price of several million dollars, right now the cost per square foot of Miami properties is below the cost per square foot of similar luxury real estate in New York City. As more luxury properties and buildings are developed, investors are lining up to make purchases.

Art, Culture, and Entertainment

Miami has redefined itself into a sophisticated international metropolis. Art Miami and Art Basel- Miami Beach have grown into large annual events that garner a lot of attention. A number of quality museums can be found in Miami, including the Miami Museum of Science and the Perez Art Museum Miami.

The culinary scene in Miami has exploded, and the city is now home to some of the top-rated restaurants in the world. Some say that Miami can even compete with major cities such as New York, London, and Tokyo when it comes to culinary offerings. The number of luxury hotels and upscale night clubs in Miami has also grown exponentially, and Miami also has a Design District where people can shop for luxurious clothing and accessories from top designers.

Climate

Located between Biscayne Bay and the Atlantic Ocean, Miami has a tropical climate with year-round sun and comfortable temperatures. The beautiful weather, gorgeous views of the water, and access to great beaches is very appealing to luxury buyers. Miami has grown into a city that is able to fulfill the wants and needs of high-net-worth investors, and the climate is an added bonus.

November 17, 2016