It doesn’t take a rocket scientist to realize that Miami is going through some massive changes at this precise moment! Even amidst all of the climate change cries, Miami proves to stand strong in the real estate market as investors continue to take the risk of helping Miami expand. Not only has the Miami real estate boom been fueling the economy, but it’s also been the cause for new Miami projects to spring up out of the woodwork!
The surge in real estate has caused some of the most exciting new Miami projects to emerge in 2014 alone; however, most of them will not be completed for quite some time. Fisher Island showed some of the most recent new Miami projects with the first apartments springing up on the exclusive island for the first time since 2007. Backed by the demand for real estate, the new apartments appeal to homebuyers who are looking to join the luxurious island. This new real estate addition, however, is the smallest of the exciting Miami projects that are to be launched within the coming years.
One of the most speculated Miami projects is the upcoming Miami World Center. Although the initial proposal came with much opposition, the project promises to be transformative to the overall image of Miami, with over 1 million square feet of retail space, 1,800 rooms dedicated to the Marriott Marquis hotel. Reports suggest that the project is the largest development project that is currently taking place in the United States, generating approximately $1 billion in economic growth for the region. Not to mention, the project will be connecting to another new Miami project!
The new Miami World Center project would be connected to the Miami Central Station. The new project titled MiamiCentral would be a massive change to the downtown Miami scene. Not only would the station boast remarkable architectural design, but further drive the economic growth of the city. More excitingly however, the new project would be the flagship icon of the All Aboard Florida project that promises to connect major destinations of South Florida via train.
These are simply a few among the new Miami projects that will be springing up within the next coming years. Some of which, we’ll see sooner than others. However, one thing is for certain, the new projects will promise to revolutionize the way Miami is viewed as a destination city. Even more so, the combination of the financial growth and real estate success will only continue to amaze Miami natives by cultivating future growth! And we can’t wait!
Image Credit: ExMiami
Miami is regarded across the globe as a top travel destination. The sand, beaches and beautiful people are surely appealing enough to draw in tourists and inhabitants from all around the world. But Miami is criticized for one thing (alright maybe a couple of things), the lack of historical elements across the city. Granted, there are a few historical landmarks and trademarks that can be branded as true Miami, but in comparison to major historic cities, Miami tends to fall rather short. That’s not to say there is no history in Miami, that certainly isn’t the problem, however the growing population coupled with the tendency to tear down historical buildings certainly isn’t helping.
Don’t get us wrong, we’re all for the growth of Miami real estate, but isn’t it worth discussing that historical landmarks are haphazardly being removed? Between 2011 and 2012, homeowners removed more homes that predated 1942 than in the past 7 years in total! Many have pushed for any home that was built before this year to go before a committee before any work was to be done on it, but their propositions have been declined. Even past residential historic Miami, the commercial aspect is facing a great deal of danger, as well. Just last month, the historic church on Lincoln Road was being threatened to be torn down to be used for further retail space, however preservation groups immediately tried to appeal any movement whatsoever.
However, it isn’t ALL bad news! On the other hand, there seems to be a number of growing developments, which are actively avoiding historic Miami and promising to bring new job and revenue to Miami, as a whole. For example, a mega mall that has slowly been moving forward to be one of the largest retail destinations in South Florida, spanning over 10 blocks! Further developments like the All Aboard Florida project promises to expand, not just Miami, but Florida as a whole, with the central hub being in Miami as plans go forward to unveil the station hub that is reminiscent of Grand Central Station…with a modern twist of course! Even parts of historic Miami are being protected like the Miami Marine Stadium, which is currently in the process of receiving donations to restore the landmark! In the end, maybe the act of removing and restoring are cancelling each other out when it comes to historic Miami, but one thing is for certain, we should be more mindful of our beloved city’s history! What are your thoughts? Should Miami be more mindful when it comes to historic landmarks?
Miami’s expanding skyline could easily be attributed to a number of possible contributors. One might think that it is due to a population growth or a stabilizing economy, and therefore, real estate market. Both answers are correct. But what if we told you that it was primarily due to foreign investment, which has helped Miami a tremendous amount in terms of it’s real estate growth, and well, skyline development. Initially, the Miami downtown area had very slow, stable growth, but within the past years has quite literally skyrocketed. This doesn’t simply just happen everywhere, in fact, many cities have been pushing for foreign investment, but have fallen flat. So why Miami?
Miami is a major tourist destination, the city attracts dozens in pursuit of beauty, luxury, and of course…beaches. But this barely scratches the surface as to why it has witnessed such rapid growth because of foreign investors. The main reason– because it is considered to be the “Capital of Latin America” by many. Studies by the Miami Downtown Development Authority suggest that 90% of new condo demand in the downtown area is primarily from foreign buyers.
The large influx of foreign attention can be traced back to several distinct variables that make Miami the prime destination for them to place their investment money for safekeeping. From a financial standpoint, Miami offers low prices and low interest rates as opposed to Latin American destinations. However, from an aesthetic perspective, the potential of investing in Miami is absolutely boundless. Not only does Miami promise a beautiful permanent or vacation home, but the prospect of the United States and the opportunity for a better lifestyle are major perks, as well. Not to mention the biggest drawing factor of Latin American suitors, the culture which is a vibrant infusion of both Latin and American!
Essentially, this has a huge trickle down effect on both Miami Real Estate and the quality of living within the area. A combination of demand from both domestic and foreign buyers have allowed for the real estate market to reach record levels of sales in 2014. Not to mention the city growth itself like the recent approval of SkyRise Miami which is calling for foreign investors to back the project by granting them an EB-5 visa, a green card for foreigners who invest $500,000 to $1 million in the United States. At this rate the growth caused by foreign investors shows no signs of slowing down anytime soon and will ultimately contribute.
We’ve all seen examples of crowdfunding in it’s various forms. Usually posts are circulated around Facebook and share the users story in order to gain some donation from friends willing to help. The tactic to raise money can be used to gain support for college tuition, gadget development, surgery costs, or even to buy a new bicycle! Crowdfunding can essentially be used for anything and when backed by the massive power of social media available at everyone’s fingertips, the trend is quickly catching on and taking new shapes. It’s newest face? Real estate.
So how exactly does crowdfunding work? Essentially it’s asking for funding for an idea, project, or virtually anything imaginable and giving back a small thank you contribution to those who support your crowdfunding proposal. Therein lies the challenge when it comes to real estate crowdfunding…giving back. But with this bigger challenge lies a possibility for a greater reward. When a contributor invests in a real estate project, they are given a piece of ownership to the business venture. In the event that the crowdfunded real estate project is successful, the benefactors could garner a major return.
Just in the last year alone, a handful of real estate crowdfunding websites have sprung up and raised massive amounts of supporters backing the projects. Even real estate pros are taking notice of the crowdfunding techniques and giving it a try on their own like Jay Massirman, who has been in the real estate business for over 30 years. Massirman decided to try his hand at crowdfunding for an Orlando project although it would be his first time using the technique to gain support. In the end, who’s to say that crowdfunding for real estate won’t be a massive success? Although it is too early to tell right now, the idea of owning a piece of a successful piece of realty is enough to drive influential investors to the idea.
Real estate trends usually revolve around a number of different factors, which can prove to be major influence. Tourism has proven time and time again to be one of those contributors. Miami is no stranger to record-high tourism, which easily explains the constant renovation and reconstruction of Dade County. In 2013 alone, Miami tourism continued its streak of record-breaking numbers with a whopping 14.2 million visitors overnight, most of which were classified as luxury visitors.
The tourism-real estate trend isn’t just limited to the South Florida area, however. When looking on a national scale, other areas are reaping the benefits, as well. Nashville, for example, has seen a massive increase in the commercial real estate industry all thanks to the booming tourism numbers. Nashville, Tennessee was named one of the top travel destinations of 2014. As a result, new developments are constantly springing up in the area that range from retail to restaurant to a new music center which contributed millions to the economy during its first year.
Miami not only boasts massive tourism numbers, but immigration numbers to boot. Just last month, the World Cup influenced a major influx of Hispanic visitors to show off their pride in one of the nations top Hispanic travel destinations. As a result, the Hispanic population has ultimately witnessed an increase after events like the World Cup all due to the tourism experience. This eventually segues into a much larger growth in real estate; it also affects the overall cultural experience of South Florida. Commercial and residential real estate growth becomes evident when you take a look around and take notice of all the reconstruction, sky-high construction cranes, and growth in business. All the signs point to the fact that the effects of tourism are positively influencing real estate.
If you are looking for assistance in obtaining financing as a first-time homebuyer and you qualify under CDBG, HOME, SHIP or Surtax income guidelines, you may benefit thanks to the loan program between the Miami-Dade County Public Housing and Community Development and local home mortgage lenders.
Homebuyers in Miami-Dade County now have a chance to own a home of their own at below-market mortgage rates. If you’re a homebuyer looking for a manageable mortgage, this new program may make it possible for you to buy the home you want right now.
Public Housing and Community Development will work with you and local mortgage lenders to provide a low-interest second and/or a third mortgage using the appropriate source of funds to bring your out of pocket costs to an affordable level.
Public Housing and Community Development invites low- and moderate-income persons who are first-time homebuyers to apply for a mortgage loan subsidy through the County’s loan program. Program participation is limited to one time only per family. A maximum 30-year fixed-interest mortgage is available for persons who qualify. You will also be required to obtain a first mortgage from an approved participating lender.
Miami is still proving to be one of the hottest property markets in the United States, as median sale prices were up for condominiums and single-family homes in March. The market is continuing to be popular with overseas buyers and investors.
Last month the median sales price for single-family homes rose by 4.4%, up from $225,000 in March last year to $235,000 for March 2014. Prices have now risen for 28 consecutive months, according to figures from the Miami Association of Realtors. The average sales price for a single-family home rose by 17.8%, increasing from $389,847 in March last year, to $459,102 for March 2014. The article in Propertywire points out that Miami is still attracting worldwide investors, and demand continues to be strong this year. However inventory levels are rising, creating a more balanced market.
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With his baseball career on ice, Yankees third baseman Alex Rodriguez is making a little money in the real estate market. The embattled player is suspended for the season because of doping allegations, but he managed to make a tidy profit on his Miami Beach luxury condo when he sold it this month for $2.575 million.
He bought the home for $2.1 million just last June. He initially listed it in November for $3.2 million, but dropped the price in January to $2.99 million. According to the Wall Street Journal, A-Rod decided he wanted something bigger on the beach.
The three-bedroom condo offers wraparound balconies with views of the ocean and Miami Bay in a luxury building with white modern decor by Briggs Edward Solomon.
This isn’t the first time Rodriguez has quickly changed his mind about fancy Miami real estate. In 2012, he listed his 20,000-square-foot North Bay Road home soon after finishing its construction.
The property was listed by Rodriguez’s sister, Arlene Dunand of One Sotheby’s International Realty.
According to the chief of the Federal Reserve Bank of Atlanta, steady job growth and a strong real estate market have made South Florida’s economic outlook brighter than the rest of the U.S. Southeast.
“On the measure of development of commercial real estate and investment in residential real estate, as well as the employment picture, I think Miami is a little better off than most of the Southeast,” Dennis Lockhart said Wednesday at a Greater Miami Chamber of Commerce event.
Beyond the official unemployment rate reported by the federal government, Lockhart said he and his Atlanta-based forecasters look at a broader labor pool. Their tally includes so-called marginally attached workers who want jobs but are not actively looking as well as part-time workers who would like to move up to full-time employment. The unemployment rate when you factor in those groups is 12.6 percent, he said.
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