Why You Should Consider Investing in Miami Real Estate
Miami real estate investors are looking to add to their portfolio by investing in high-quality real estate. The ups and downs of the volatile stock market are frustrating and investors are looking for an opportunity to make an investment with less risks and more profit. Real estate investing might seem complex to many, but Miami real estate investing is beneficial to investors looking for high quality investments at an affordable price with tremendous upside. There’s no better time than now to begin investing in Miami real estate.
According to Forbes, the best investment in Miami-Dade is apartment developments, “Because rents held up better than home prices during the recession, buying a property to rent out is an attractive option despite the recent rise in prices, less so in Palm Beach County, more so in Miami-Dade and Broward. Almost half of households in Miami are renters. With most the new healthcare and retail jobs paying low wages, the renting population will increase. In urban areas it makes sense to buy a single-family house and split it into rental units. Apartment buildings are a good option in Miami – at the right price.”
While other investments can be unreliable and unpredictable while real estate values are more likely to stay steady within a year’s time. Also, Miami real estate offers an appreciating asset to investors.
According to NAWRB, “With its close proximity and easy access to Latin America, Miami has long attracted international home buyers seeking a secure place to invest their money and a safe place to live with their families. Events in other global markets, including the economic slowdown in China, will only strengthen South Florida’s position as a global destination for foreign investment.”
Trust deed investments offer a great yield with relatively low risk to investors. Most trust deed investors earn high single-digit annual returns that are paid monthly, although returns of 10 percent or more are certainly possible.
If a borrower fails to pay their loan, the trust deed investor is protected by the margin of safety, or the difference between the loan amount and the value of the property. The lender can foreclose on the property and sell it to recover the investment and past-due interest. Because hard money loans are short-term, usually for two years or less, real estate values are unlikely to change dramatically before the loan is due.
Trust deed investments are attractive because of their high dividend payout, and because with interest rates so low these trusts can use leverage to increase the number of properties they can purchase for the fund. They were created in order to give investors the opportunity to invest in diversified portfolios of income-producing real estate in the same way they invest in other asset classes, through the purchase and sale of liquid securities.