Choosing a real estate market to start investing in is half the battle of real estate investing. After that decision has been made, real estate investors have to decide what kind of investment property to go for in order to get the best return on investment.
A Miami Investment Property Is a Great Choice
The Miami real estate market is looking positive overall for this year. Real estate experts have predicted that the beginning of 2018 will be a great time for real estate investors to buy an investment property in the Miami housing market. This is because the trends in inventory and demand for Miami investment property are creating a Miami real estate market that favors buyers (for the most part).
Miami rental properties are also predicted to do well in the Miami housing market, as people (especially millennials) are favoring renting over buying in Miami.
Job growth, a strong economy, and a beautiful location make a Miami investment property prime real estate for a high return on investment. Once a real estate investor chooses to invest in Miami real estate, the next question is as follows: What is the best type of Miami investment property for me?
Related: Why You Should Go for Miami Real Estate Investing Now
What Is the Best Type of Miami Investment Property?
The answer to this question depends on a number of factors:
- Specific location of a Miami investment property
- Condition of the Miami real estate market
- Choice of real estate investment strategy for a Miami investment property
All of these elements affect the return on investment for a Miami investment property. Still, looking at the direction of the Miami housing market, a real estate investor can decide which type of Miami investment property is best for him/her. Let’s delve into one major type of Miami investment property: residential real estate.
Miami Residential Real Estate
Because there is an increase in tenants looking to rent residential real estate all over Miami, this type of Miami investment property is a top consideration for real estate investors. There are a few different options for residential real estate in the Miami real estate market.
A Miami Single Family Home
Miami real estate investors sometimes overlook a single family home for real estate investing because it hasn’t been considered “hot” in the Miami housing market. However, single family home investments have proven to be a pretty stable real estate investment. The market for Miami single family home investments has been experiencing a steady rise in prices (rather than a sharp one compared to other Miami real estate markets). The steady rise in price for this kind of Miami investment property means that real estate investors stand to benefit from greater and more predictable appreciation, increasing potential return on investment.
Again, because a single family home wasn’t considered “hot real estate”, construction and real estate development efforts were focused elsewhere. The inventory for Miami homes for sale is pretty low compared to the other kinds of Miami investment property.
Miami homes for sale are predicted to be in high demand this year. Miami is filled with young professionals due to its ever-growing economy. Naturally, these young professionals will soon be in the Miami housing market for a single family home. High demand and low inventory of homes for sale mean they could be the best property investments for a real estate investor looking to invest in the Miami housing market.
The icing on top? A single family home is among the best property investments because of the relatively low price per square foot for this kind of Miami investment property as well as the ease of turning it into long-term rental properties for a return on investment.
Based on this information, is this type of a Miami investment property one of the best property investments for you?
If so, click here to find a single family home in Miami right now.
Miami Condos for Sale
When real estate investors first think of Miami, condos for sale come to mind. Miami condos for sale pose a stark contrast to a single family home. For one, Miami condos for sale have a much higher inventory, causing real estate investors who currently own them to be forced to sell at lower than the real estate market value.
Miami luxury condos are following the same trends as average condos for sale. The supply of Miami luxury condos is way up, and real estate investors are selling for less than the market value. On average, Miami luxury condos are going for 25% less than their value.
This is where the buyer’s market for Miami investment property is really at. Miami condos for sale could be the best property investments for real estate investors who choose a buy and hold strategy, banking on rental properties and appreciation for a return on investment.
The downside? There are a few things that count against Miami condos for sale in the run for best property investments. Even with being sold at a lower value, Miami condos for sale are still more expensive per square foot than a single family home. Real estate investors also have to consider condo fees as well as the restrictions put on condos for sale if they wish to use them as rental properties.
If these things don’t deter your choice, Miami condos for sale may be the best property investments for you.
Click here to find condos for sale in Miami.
Miami Apartments for Sale/Multifamily Homes
Moving into another popular type of residential real estate, we have Miami apartments for sale and multifamily homes. Miami apartments for sale have given a great return on investment to real estate investors in the past few years. Multifamily homes in Miami have been found to be as reliable and stable as the single family home investment.
This stability for multifamily homes and Miami apartments for sale comes from the fact that vacancy rates have recently fallen. In fact, millennials favor Miami apartments for sale over the more expensive Miami condos, boosting occupancy. This Miami investment property has also experienced a rise in rent prices of 13%.
Low vacancy rate and higher rent prices? Miami apartments for sale sound like the best property investments.
What about Airbnb Miami Rentals?
Have you chosen from our list of best property investments and are considering using Airbnb Miami rentals for your investment strategy? Airbnb Miami rentals can bring a high return on investment, as many real estate investors can back up.
The issue is the legal restrictions and regulations against Airbnb Miami rentals. Before jumping into a Miami investment property with plans to join the ranks of Airbnb Miami rentals, investigate the laws of the location to make sure you don’t end up paying heavy fines for violation!
Related: Why You Should Consider Investing in Airbnb Miami Properties
So, What Is the Best Miami Investment Property?!
Mashvisor recommends a single family home investment property if you’re looking to invest in Miami real estate. A single family home is a tried and true real estate investment that won’t fail, and a Miami single family home is no different. Use Mashvisor to find a single family home in Miami and analyze it. You’ll find a Miami single family home in no time at all.
Related: Where to Look for The Best Real Estate Investments for 2018