Washington - Hispanic families with home ownership increased from 4.2 million in the year 2000 to 6,600,000 in 2012 , representing an increase of 58 % , said Wednesday the National Association of Realtors ( NAHREP ) .
The rest of the U.S. population in the same period saw a net increase of only 5% , according to data from the association.
With these figures , Hispanic families are consolidated as the largest minority in buying homes in the country, NAHREP said.
"Despite a difficult economic environment and poor housing market , Hispanics have registered gains in all the ways that lead them to homeownership ," said Juan Martinez, president of NAHREP .
In 2012 , Hispanics continued to lead the increase in home ownership , registering 693,000 new properties , compared to 355,000 in 2011 .
The housing association, which produced its usual annual Census report indicated that the " combination of demographic and economic trends explain why this colossal consumer segment will be a key force behind the economic revitalization ."
In the last twelve years, only in 2009 and 2010 , and because of the economic crisis in the United States, there have been declines in home buying by the Hispanic community.
As a percentage of total home ownership in the U.S., however, has decreased from 47.5 % in 2010 to 46.1 % in 2012.
NAHREP explains this figure by the tremendous growth of the Hispanic population in the United States, where 50,000 citizens each month come of age and has been an increase of more than a million Hispanic households in the last two years.
Hispanics also show an increasing purchasing power , estimated at about $ 1.2 billion today, and is projected to reach 1.5 billion in 2015.
In education samples increased Hispanic presence is also seen , with more than two million Hispanics between 18 and 24 years in college.
Miyerkules, Abril 2, 2014
Martes, Abril 1, 2014
Miami will have its "Little Santo Domingo"
Commissioner Wifredo Gort said the urban concept will be performed in District 1 .
As already in the tourist areas like Miami , " Little Havana " or " Little Haiti " , this multicultural city in southern Florida (USA ) will before the end of the year with their own " Little Santo Domingo" .
"Right now I'm working on a concept to create a ' Small Santo Domingo ' in District 1 Miami ," confirmed Monday the commissioner Wifredo Gort , who will boost this initiative with the purpose of revitalizing the neighborhood of Allapattah .
Gort , 72 and who came to occupy the mayor of Miami in 1996 for two months by the death of his predecessor , said on its website the hope that , with this initiative, have " the same success as I managed to Little Havana " .
" In the past he forged a plan to develop the area of ' Little Havana ' " he said, and today "is a great tourist attraction, where you organize the ' Cultural Friday ' and performances by artists of Latin American community."
The idea is to promote the "Little Santo Domingo" in the neighborhood of Allapattah , informally and is named by many and that, along with Grapeland Heights, forming the so-called District 1 Miami.
Allapattah is seeing the neighbor Wynwood is becoming accelerated marches in trendy Miami and a magnet for artists and powerful real estate investment and modern business .
In the poor neighborhood of Allapattah , whose name comes from the term " alligator " ( alligator ) in the language of the Seminole Indians today live a great mix of Caribbean and Latin American , so that about 75 % of the population is Latino and 20% black .
In Allapattah , as in other areas of southern Florida, many Dominicans live and many of them have not come here directly from their countries , but is often seen arriving from New York.
According to the U.S. Census , Dominicans represent 3 % of the U.S. Hispanic population , but nearly 80 % live in the northeast of the country, especially in New York, where about half (about 675,000 in 2010) .
In Florida lived about 172,450 Dominicans in 2010, also according to the census , and historically have focused largely on Allapattah , although the high concentration that occurred in the 70s is not so certain .
Still, in the stretch of 17th Avenue that runs through this neighborhood were opened some of the first Dominicans business in the region and even today are the majority.
The intention of the authorities is , among other initiatives, fix the facades of the area where the park is Juan Pablo Duarte , honoring one of the " founding fathers" of Dominican Republic , and decorate with Dominican reasons.
As already in the tourist areas like Miami , " Little Havana " or " Little Haiti " , this multicultural city in southern Florida (USA ) will before the end of the year with their own " Little Santo Domingo" .
"Right now I'm working on a concept to create a ' Small Santo Domingo ' in District 1 Miami ," confirmed Monday the commissioner Wifredo Gort , who will boost this initiative with the purpose of revitalizing the neighborhood of Allapattah .
Gort , 72 and who came to occupy the mayor of Miami in 1996 for two months by the death of his predecessor , said on its website the hope that , with this initiative, have " the same success as I managed to Little Havana " .
" In the past he forged a plan to develop the area of ' Little Havana ' " he said, and today "is a great tourist attraction, where you organize the ' Cultural Friday ' and performances by artists of Latin American community."
The idea is to promote the "Little Santo Domingo" in the neighborhood of Allapattah , informally and is named by many and that, along with Grapeland Heights, forming the so-called District 1 Miami.
Allapattah is seeing the neighbor Wynwood is becoming accelerated marches in trendy Miami and a magnet for artists and powerful real estate investment and modern business .
In the poor neighborhood of Allapattah , whose name comes from the term " alligator " ( alligator ) in the language of the Seminole Indians today live a great mix of Caribbean and Latin American , so that about 75 % of the population is Latino and 20% black .
In Allapattah , as in other areas of southern Florida, many Dominicans live and many of them have not come here directly from their countries , but is often seen arriving from New York.
According to the U.S. Census , Dominicans represent 3 % of the U.S. Hispanic population , but nearly 80 % live in the northeast of the country, especially in New York, where about half (about 675,000 in 2010) .
In Florida lived about 172,450 Dominicans in 2010, also according to the census , and historically have focused largely on Allapattah , although the high concentration that occurred in the 70s is not so certain .
Still, in the stretch of 17th Avenue that runs through this neighborhood were opened some of the first Dominicans business in the region and even today are the majority.
The intention of the authorities is , among other initiatives, fix the facades of the area where the park is Juan Pablo Duarte , honoring one of the " founding fathers" of Dominican Republic , and decorate with Dominican reasons.
Lunes, Marso 31, 2014
Buying a home ... to live or as an investment
The fact that hundreds of thousands of mortgages are in a difficult situation in the nation , and many other persons in a process that may lose their homes , or have already lost , does not mean you do not have opportunities to bring to reality your dream of owning your first home. Or that you can not spend money to buy a house to get money renting it .
All you know is doing things that you find out if the economic conditions to carry them out , and you will find good opportunities to purchase and mortgage. If it is the first property you 're buying , take his lead to banks - this precalificándote you get yourself to that loan you want .
The magic number in this strategy is 31 . I say this because your mortgage payment that you think home - purchase - including insurance and taxes should not exceed more than 31 % of your monthly gross entry . Use a simple calculator to do the math . For example, if you earn $ 2000 a month, your monthly payment should not exceed $ 620, which is 31 % of $ 2000 . This is what is known as DTI , the Debt to Income Ratio English , meaning the ratio between what you earn and what you owe on your mortgage .
One important thing to do in your efforts to buy a home is llegarte Agency of the Department of Urban Development HUD or more near - or visit to find out where http://espanol.hud.gov- offer classes in home purchases . They not only going to be able to have access to good government programs , but you can also view properties that have been repossessed by the agency and could offer you a good price. In many cases it is not necessary that the property you 're shopping , as a home or investment property is your first .
If you think you do not qualify to buy a home because your income is too low, the HUD you can also offer alternatives , as there are government programs to help you pay your mortgage or your rent if you have a very limited income.
To stabilize the economy , the housing system has to stabilize first, and while many try to do so by modifying their mortgage loans or refinancing your debts, you can help yourself and you help our economy by taking advantage of low prices and interests we have at this time , and that could soon change .
All you know is doing things that you find out if the economic conditions to carry them out , and you will find good opportunities to purchase and mortgage. If it is the first property you 're buying , take his lead to banks - this precalificándote you get yourself to that loan you want .
The magic number in this strategy is 31 . I say this because your mortgage payment that you think home - purchase - including insurance and taxes should not exceed more than 31 % of your monthly gross entry . Use a simple calculator to do the math . For example, if you earn $ 2000 a month, your monthly payment should not exceed $ 620, which is 31 % of $ 2000 . This is what is known as DTI , the Debt to Income Ratio English , meaning the ratio between what you earn and what you owe on your mortgage .
One important thing to do in your efforts to buy a home is llegarte Agency of the Department of Urban Development HUD or more near - or visit to find out where http://espanol.hud.gov- offer classes in home purchases . They not only going to be able to have access to good government programs , but you can also view properties that have been repossessed by the agency and could offer you a good price. In many cases it is not necessary that the property you 're shopping , as a home or investment property is your first .
If you think you do not qualify to buy a home because your income is too low, the HUD you can also offer alternatives , as there are government programs to help you pay your mortgage or your rent if you have a very limited income.
To stabilize the economy , the housing system has to stabilize first, and while many try to do so by modifying their mortgage loans or refinancing your debts, you can help yourself and you help our economy by taking advantage of low prices and interests we have at this time , and that could soon change .
Sabado, Marso 29, 2014
13.4% plummet sales of new homes in U.S.
The recent recovery of the housing market in the United States received a setback with the publication of the July new home sales , which plummeted unexpectedly played their worst mark in nine months , showing that the increase in mortgage rates is moderating industry momentum .
The Commerce Department reported that sales fell 13.4 percent - its biggest decline in three years - at an annual rate of 394,000 units in July , which was lower than the forecast of 490,000 .
Although the sales increased 6.8 percent annual rate, compared with the same month of 2012 , and while the average property prices surged 8.3 percent to 257 200 dollars , analysts do not hesitate to point out that the numbers are very bad for the sector.
"The figure leaves us in shock , we must wait for the data in the coming months ," she added Doug Duncan, chief economist at Fannie Mae in Washington , for whom sales still suggest that the sector's recovery is steady but not robust .
Data simultaneously weaken the expectation that the U.S. Federal Reserve will begin to reduce their rate of bond purchases in September.
"The rise in mortgage rates is having an impact on the property market ," confirmed Scott Brown, chief economist at Raymond James in St. Petersburg , Florida.
Mortgage rates have risen sharply since May on expectations that the Fed will start soon cut its program of monetary stimulus.
The Commerce Department reported that sales fell 13.4 percent - its biggest decline in three years - at an annual rate of 394,000 units in July , which was lower than the forecast of 490,000 .
Although the sales increased 6.8 percent annual rate, compared with the same month of 2012 , and while the average property prices surged 8.3 percent to 257 200 dollars , analysts do not hesitate to point out that the numbers are very bad for the sector.
"The figure leaves us in shock , we must wait for the data in the coming months ," she added Doug Duncan, chief economist at Fannie Mae in Washington , for whom sales still suggest that the sector's recovery is steady but not robust .
Data simultaneously weaken the expectation that the U.S. Federal Reserve will begin to reduce their rate of bond purchases in September.
"The rise in mortgage rates is having an impact on the property market ," confirmed Scott Brown, chief economist at Raymond James in St. Petersburg , Florida.
Mortgage rates have risen sharply since May on expectations that the Fed will start soon cut its program of monetary stimulus.
Huwebes, Marso 27, 2014
U.S. home sales rise to up to 6 ½ years
Sales of previously owned U.S. homes in August reached its highest level in six and a half years because buyers returned to the market in large numbers to ensure the costs of cheap credit , amid rising mortgage rates.
The National Association of Realtors (NAR , for its acronym in English ) said Thursday that sales of existing homes rose 1.7 percent last month to an annualized rate of 5.48 million units , the level highest since February 2007, when property values began to decline.
Economists polled by Reuters had forecast a rise to a rate of 5.25 million units in August . The housing recovery has helped prop up the economy to improve household finances and support consumer spending .
The NAR chief economist Lawrence Yun said the housing market may be experiencing a temporary maximum undecided because potential buyers are encouraged to close deals before a likely increase in borrowing costs .
"The rise in mortgage rates led to more buyers to close deals , but monthly sales are likely to be mixed in the coming months from various market frictions ," he said , pointing to a tight inventory limit the choice in various real estate sectors .
Mortgage rates have risen in recent months after hitting a low of 3.35 percent in May , according to Freddie Mac 's mortgage 30 year fixed rate was 4.5 percent as of September 19 close a maximum level in two years .
The Fed cited tougher financial conditions as a reason for its decision announced on Wednesday not to start reducing its stimulus package , a surprise to investors and economists who had expected a slowdown in the massive program of bond purchases .
Minor asset purchases have driven mortgage rates even more .
Last month, the inventory of unsold homes on the market rose slightly and the pace of August sales represented a 4.9 months supply , the NAR said .
"There is an ongoing shortage of homes ," said Yun , who added that he believes that to change.
The offer of the month remained below 6.0 months , which is usually considered a healthy balance between supply and demand . The U.S. housing market has been impacted by tight in some parts of the country inventories.
The median price of existing homes in August rose 14.7 percent year on year , to $ 212,100 .
The distressed properties , which may weigh on prices as they usually are sold at deep discounts , accounted for 12 percent of sales last month , the lowest level since the NAR began tracking the data in 2008.
Investors purchased 17 percent of homes in August and those who acquired a home for the first time accounted for 28 percent of transactions.
Rising home values and mortgage rates have begun to marginalize first buyers of the real estate market and affect affordability.
The National Association of Realtors (NAR , for its acronym in English ) said Thursday that sales of existing homes rose 1.7 percent last month to an annualized rate of 5.48 million units , the level highest since February 2007, when property values began to decline.
Economists polled by Reuters had forecast a rise to a rate of 5.25 million units in August . The housing recovery has helped prop up the economy to improve household finances and support consumer spending .
The NAR chief economist Lawrence Yun said the housing market may be experiencing a temporary maximum undecided because potential buyers are encouraged to close deals before a likely increase in borrowing costs .
"The rise in mortgage rates led to more buyers to close deals , but monthly sales are likely to be mixed in the coming months from various market frictions ," he said , pointing to a tight inventory limit the choice in various real estate sectors .
Mortgage rates have risen in recent months after hitting a low of 3.35 percent in May , according to Freddie Mac 's mortgage 30 year fixed rate was 4.5 percent as of September 19 close a maximum level in two years .
The Fed cited tougher financial conditions as a reason for its decision announced on Wednesday not to start reducing its stimulus package , a surprise to investors and economists who had expected a slowdown in the massive program of bond purchases .
Minor asset purchases have driven mortgage rates even more .
Last month, the inventory of unsold homes on the market rose slightly and the pace of August sales represented a 4.9 months supply , the NAR said .
"There is an ongoing shortage of homes ," said Yun , who added that he believes that to change.
The offer of the month remained below 6.0 months , which is usually considered a healthy balance between supply and demand . The U.S. housing market has been impacted by tight in some parts of the country inventories.
The median price of existing homes in August rose 14.7 percent year on year , to $ 212,100 .
The distressed properties , which may weigh on prices as they usually are sold at deep discounts , accounted for 12 percent of sales last month , the lowest level since the NAR began tracking the data in 2008.
Investors purchased 17 percent of homes in August and those who acquired a home for the first time accounted for 28 percent of transactions.
Rising home values and mortgage rates have begun to marginalize first buyers of the real estate market and affect affordability.
Lunes, Marso 24, 2014
A real commitment to lift the tallest skyscraper in Miami
The architectural competition in the United States for the construction of skyscrapers now comes to Miami , where a real estate developer plans to build a tower over 300 feet tall , which would make , to overcome all the requirements, the highest in the " sunshine capital " .
The so-called Skyrise will rise at the heart of "downtown " (city center) of Miami, with a sleek, aerodynamic design , air ramp launching spacecraft , which built, would be not only the tallest skyscraper the city, but the most striking.
With 305 meters high , the spectacular observation tower and leisure center will dominate the entire city of Miami, an initiative which , apparently , has already received approval from the Federal Aviation Administration and airport authorities.
The design of the slim metal tower , open at the sides , will be in charge of the Miami firm Arquitectonica, the same charge of design large entertainment center and casino planned by the Malaysian group Genting .
The tower will have three balconies, a restaurant , a nightclub , a flight simulator , meeting rooms and a room for interactive exhibits, among other deals, the website said Skyrise , although still some mystery about its construction remains .
The Miami Skyrise is an " iconic building of the great city of Miami, located just minutes from Miami Airport and next to the port, the American Airlines Arena" and important museums , he said.
According to The Miami Herald, Jeff Berkowitz, of Miami, is the developer responsible for the project, Tishman Construction and Coastal Construction as general contractor .
The construction of skyscrapers, still in embryo, begin in mid- 2014 and conclude in mid- 2017 , while generate more than 7,100 jobs during its development phase and another 17,000 after opening.
The plan for the construction of this amazing work of engineering will be presented on December 2 and " consolidate to Miami in the list of the world's great cities ," the newspaper said Berkowitz .
Construction of the skyscraper will have a total economic impact in Miami, during its development, more than 880 million dollars and 1.3 billion dollars a year after opening , Skyrise said in its website .
The so-called Skyrise will rise at the heart of "downtown " (city center) of Miami, with a sleek, aerodynamic design , air ramp launching spacecraft , which built, would be not only the tallest skyscraper the city, but the most striking.
With 305 meters high , the spectacular observation tower and leisure center will dominate the entire city of Miami, an initiative which , apparently , has already received approval from the Federal Aviation Administration and airport authorities.
The design of the slim metal tower , open at the sides , will be in charge of the Miami firm Arquitectonica, the same charge of design large entertainment center and casino planned by the Malaysian group Genting .
The tower will have three balconies, a restaurant , a nightclub , a flight simulator , meeting rooms and a room for interactive exhibits, among other deals, the website said Skyrise , although still some mystery about its construction remains .
The Miami Skyrise is an " iconic building of the great city of Miami, located just minutes from Miami Airport and next to the port, the American Airlines Arena" and important museums , he said.
According to The Miami Herald, Jeff Berkowitz, of Miami, is the developer responsible for the project, Tishman Construction and Coastal Construction as general contractor .
The construction of skyscrapers, still in embryo, begin in mid- 2014 and conclude in mid- 2017 , while generate more than 7,100 jobs during its development phase and another 17,000 after opening.
The plan for the construction of this amazing work of engineering will be presented on December 2 and " consolidate to Miami in the list of the world's great cities ," the newspaper said Berkowitz .
Construction of the skyscraper will have a total economic impact in Miami, during its development, more than 880 million dollars and 1.3 billion dollars a year after opening , Skyrise said in its website .
Biyernes, Marso 21, 2014
The real estate market boom of Miami
The strong recovery of the market in South Florida continues to get attention. In this comprehensive report written by Fernando Levy Hara market situation shows from the last crisis .
In my last article for Real Estate Report in June 2012 I noted that the deep recession that had shaken since 2008 the real estate market in South Florida seemed to be beginning to disappear .
The property prices have stopped falling and had begun to recover slowly ; rental prices had begun to rise and the number of vacant units to decline.
The stock of 42,000 completed units remaining unsold in 2008 had been absorbed gradually , and there were only 4,500 vacant units . He ended the article saying, " this is the time to re-enter this market , those who enter in the next 24 months will be buying in the beginning of the new virtuous cycle of real estate boom and may have excellent yields within 4-5 years when prices recover . "
Luckily , I was not wrong . Many thought it was too optimistic back in 2009 when I had to swear to my investors would make an excellent business investing in property in "distress " in South Florida.
In 2010 I had to defend my thesis in the Program in Real Estate Development from which I graduated from Harvard University, and some of the jurors, ( the most recognized professors and real estate advisors USA) told me , "Your numbers sound too optimistic, recovery will not reach the region until 2020. "
But I insisted that before 2013 , we would see construction cranes filling the skyline again Miami ... and luckily I was right. I found one of those teachers last month at Harvard, where now I teach classes , and just saw me he said, " I remembered a lot of you ... if you followed in business your theory , you should have made a lot of money these years , it is not right? " . It was a great pleasure to hear .
The recovery of the condo market in this area of the country is , even for an optimist like me, without a doubt amazing .
Of the 42,000 condo units ( beyond what we call horizontal property ) if there are only 650 sold .
Empty units are at a historically low record : 1.4 % of all units are not rented or occupied by their current owners , compared with 4.5% on average across the country .
Only in the area of the urban core of Miami ( Brickell -Downtown- Edgewater- Midtown, from the center of the city to the Bridge Street NE 33) there is a demand for 6542 new units each year due to the new trend of young professionals to live near the downtown area of the city avoiding commute an hour drive to work. This demand is not satisfied now : for 7 years, no new projects were started in the area, and currently there is less supply than demand .
For this reason, the rents rose rapidly : an extraordinary 10.6% in 2012 ( in a country with less than 2 % inflation ); estimated to rise 6% this year and 3.5% each the next four years . As we studied in economics , by rising rents, rising prices of the properties below , so that " the value of goods is directly proportional to the income they generate ."
The National Board of Realtors, one of the largest professional institutions in the country, has appointed Miami with " Number 1 in the market rate of recovery in 2012."
Because recovery was stronger than in other cities?
• On the one hand , Miami is one of the metropolitan areas of higher population growth. While cities like Detroit and other industrial cities in the Midwest are shrinking rapidly (up to 2 % annually over the past 13 years ), Miami has grown between 2% and 1.2% per year since the beginning of the millennium.
• Still paradise for foreigners like me, looking for a place with quality of life , good weather, and professional development opportunities not found elsewhere.
• In addition , the vast majority of these immigrants are young, between 25 and 45, who are in the middle stage of formation and growth of their families. South Florida was no longer 15 years ago the city of withdrawal of American retirees. The population is growing and with them, the need for more and better housing units.
• The demographic composition also contributes : currently 23.5 % of the units are occupied by one person , 27.5 % and 18.7 % for two for three . This creates greater demand for residential units at the beginning of the decade.
• In return for the past 7 years, only 200 new condominium units were built in the area, waiting for the surplus left by the crisis absorbed .
• Finally , we can not fail to mention the powerful effect of the thousands of foreigners who arrived after the crisis to invest their savings in this market , perceived as solid and stable, and where anyone can do business even if not resident , not pay higher taxes, and free to take your money the day you sell your property. The State of Florida is one of the U.S. states in which fewer taxes are paid because, unlike others such as New York or California, there is no provincial income tax . For the same investment in California is paid up to 53 % tax , here will pay 20 %.
Investors came this time around. Until the previous boom, most of the capital came from Latin America. In 2012 , for the first time , the group of biggest foreign buyers came from ... France. The French, eager to escape the onerous 75 % rate of income tax that President Hollande proposed as part of his campaign promise , put aside their traditional aversion to invest abroad , and bought 20 % of the units for sale in the area ... more than Canadians, Venezuelans, Brazilians and Argentines, traditional buyers of properties in this city.
Finally we should add that Miami is in train to become one of the most important cities in the country. Currently already one of the ten metropolitan areas with higher GDP : it is important to note that the GDP of South Florida, an area of 9 million and 90 kilometers long, is higher than any country in Latin America except Brazil and Mexico .
My prediction ?
The condo market in South Florida has given all the conditions to experience sustained development cycle for the next three or four years.
Think of Buenos Aires in 2003 to understand : after a severe crisis in that year the first developments began to appear , driven by the costs and low sales prices . Those who bought at the time to $ 1,100 per square meter thought they were paying expensive but resold three years later for $ 2500. Smart developers then bought huge lots to build 30-story towers at prices that now there is a small batch to get a 7-storey building .
Currently this same thing happening in Miami :
In January 2012 we purchased land on water, located in Edgewater , the new top area of Miami, an issue of $ 260 per m2. salable . Last month, the last two lots on the water with an incidence of 850 ! Sold ! The cycle is always the same : at the beginning of the recovery phase increases the price of land , then the construction costs , and this translates to sales prices of new units first and used later.
I do not think that prices increase 100 % as in the Buenos Aires market, because that would be a very exaggerated rise to mature as the South Florida market, but conservative think the price of condominiums increased by 20 % and 30% , following the sharp rise in rental prices .
As the investor can finance 50 % or 60 % of the investment with a bank loan , this allows you to " leverage " their investment , achieving yields of between 40 and 60 % the day you re sell the property, unimaginable gain until very shortly.
In my last article for Real Estate Report in June 2012 I noted that the deep recession that had shaken since 2008 the real estate market in South Florida seemed to be beginning to disappear .
The property prices have stopped falling and had begun to recover slowly ; rental prices had begun to rise and the number of vacant units to decline.
The stock of 42,000 completed units remaining unsold in 2008 had been absorbed gradually , and there were only 4,500 vacant units . He ended the article saying, " this is the time to re-enter this market , those who enter in the next 24 months will be buying in the beginning of the new virtuous cycle of real estate boom and may have excellent yields within 4-5 years when prices recover . "
Luckily , I was not wrong . Many thought it was too optimistic back in 2009 when I had to swear to my investors would make an excellent business investing in property in "distress " in South Florida.
In 2010 I had to defend my thesis in the Program in Real Estate Development from which I graduated from Harvard University, and some of the jurors, ( the most recognized professors and real estate advisors USA) told me , "Your numbers sound too optimistic, recovery will not reach the region until 2020. "
But I insisted that before 2013 , we would see construction cranes filling the skyline again Miami ... and luckily I was right. I found one of those teachers last month at Harvard, where now I teach classes , and just saw me he said, " I remembered a lot of you ... if you followed in business your theory , you should have made a lot of money these years , it is not right? " . It was a great pleasure to hear .
The recovery of the condo market in this area of the country is , even for an optimist like me, without a doubt amazing .
Of the 42,000 condo units ( beyond what we call horizontal property ) if there are only 650 sold .
Empty units are at a historically low record : 1.4 % of all units are not rented or occupied by their current owners , compared with 4.5% on average across the country .
Only in the area of the urban core of Miami ( Brickell -Downtown- Edgewater- Midtown, from the center of the city to the Bridge Street NE 33) there is a demand for 6542 new units each year due to the new trend of young professionals to live near the downtown area of the city avoiding commute an hour drive to work. This demand is not satisfied now : for 7 years, no new projects were started in the area, and currently there is less supply than demand .
For this reason, the rents rose rapidly : an extraordinary 10.6% in 2012 ( in a country with less than 2 % inflation ); estimated to rise 6% this year and 3.5% each the next four years . As we studied in economics , by rising rents, rising prices of the properties below , so that " the value of goods is directly proportional to the income they generate ."
The National Board of Realtors, one of the largest professional institutions in the country, has appointed Miami with " Number 1 in the market rate of recovery in 2012."
Because recovery was stronger than in other cities?
• On the one hand , Miami is one of the metropolitan areas of higher population growth. While cities like Detroit and other industrial cities in the Midwest are shrinking rapidly (up to 2 % annually over the past 13 years ), Miami has grown between 2% and 1.2% per year since the beginning of the millennium.
• Still paradise for foreigners like me, looking for a place with quality of life , good weather, and professional development opportunities not found elsewhere.
• In addition , the vast majority of these immigrants are young, between 25 and 45, who are in the middle stage of formation and growth of their families. South Florida was no longer 15 years ago the city of withdrawal of American retirees. The population is growing and with them, the need for more and better housing units.
• The demographic composition also contributes : currently 23.5 % of the units are occupied by one person , 27.5 % and 18.7 % for two for three . This creates greater demand for residential units at the beginning of the decade.
• In return for the past 7 years, only 200 new condominium units were built in the area, waiting for the surplus left by the crisis absorbed .
• Finally , we can not fail to mention the powerful effect of the thousands of foreigners who arrived after the crisis to invest their savings in this market , perceived as solid and stable, and where anyone can do business even if not resident , not pay higher taxes, and free to take your money the day you sell your property. The State of Florida is one of the U.S. states in which fewer taxes are paid because, unlike others such as New York or California, there is no provincial income tax . For the same investment in California is paid up to 53 % tax , here will pay 20 %.
Investors came this time around. Until the previous boom, most of the capital came from Latin America. In 2012 , for the first time , the group of biggest foreign buyers came from ... France. The French, eager to escape the onerous 75 % rate of income tax that President Hollande proposed as part of his campaign promise , put aside their traditional aversion to invest abroad , and bought 20 % of the units for sale in the area ... more than Canadians, Venezuelans, Brazilians and Argentines, traditional buyers of properties in this city.
Finally we should add that Miami is in train to become one of the most important cities in the country. Currently already one of the ten metropolitan areas with higher GDP : it is important to note that the GDP of South Florida, an area of 9 million and 90 kilometers long, is higher than any country in Latin America except Brazil and Mexico .
My prediction ?
The condo market in South Florida has given all the conditions to experience sustained development cycle for the next three or four years.
Think of Buenos Aires in 2003 to understand : after a severe crisis in that year the first developments began to appear , driven by the costs and low sales prices . Those who bought at the time to $ 1,100 per square meter thought they were paying expensive but resold three years later for $ 2500. Smart developers then bought huge lots to build 30-story towers at prices that now there is a small batch to get a 7-storey building .
Currently this same thing happening in Miami :
In January 2012 we purchased land on water, located in Edgewater , the new top area of Miami, an issue of $ 260 per m2. salable . Last month, the last two lots on the water with an incidence of 850 ! Sold ! The cycle is always the same : at the beginning of the recovery phase increases the price of land , then the construction costs , and this translates to sales prices of new units first and used later.
I do not think that prices increase 100 % as in the Buenos Aires market, because that would be a very exaggerated rise to mature as the South Florida market, but conservative think the price of condominiums increased by 20 % and 30% , following the sharp rise in rental prices .
As the investor can finance 50 % or 60 % of the investment with a bank loan , this allows you to " leverage " their investment , achieving yields of between 40 and 60 % the day you re sell the property, unimaginable gain until very shortly.
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