JTHS Council of the MIAMI Association of REALTORS - Jupiter, Tequesta, Hope Sound

     

                

Argentinian Buyers a Top Market for South Florida Real Estate

by | Aug 05, 2015

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Home buyers from Argentina purchase the second-most South Florida real estate among all foreign countries, according to the 2014 Survey of International Home Purchases conducted by the National Association of REALTORS® (NAR) for the MIAMI Association of REALTORS® (MIAMI). The South American nation registered 12 percent of all foreign South Florida deals last year. Venezuelan buyers finished first with 16 percent of international transactions.

Miami's multicultural population, global business center, history of price appreciation, world-class amenities, and outdoor lifestyle are some reasons why Argentinians buy properties here. The top list of South Florida international buyers in 2014:

  Country Percentage of South Florida foreign sales
1. Venezuela 16%
2. Argentina 12%
3. Brazil 11%
4. Colombia 8%
5. Canada 7%
6. France 5%
7. Mexico 4%
8. Italy 3%
8. Ecuador 3%
8. Peru 3%
8. Spain 3%

Argentinian Buyer Characteristics
Argentinian clients purchase an equal percentage of properties in Miami-Dade and Broward Counties, according to the 2014 Survey of International Home Purchases conducted by NAR for MIAMI. Argentinians registered 13 percent of international deals in both Miami-Dade and Broward. Argentina had the second-most purchases in Miami-Dade behind Venezuela (17 percent). In Broward, Argentinians ranked third behind Canada (18 percent) and Venezuela (16 percent).

Argentinians paid on average $372,000 for South Florida properties, which is significantly higher than the $245,000 average among all buyers in Florida.

  Country Avg. Purchase Price for South Florida Real Estate
1. Brazil $495,000
2. France $424,000
3. Colombia $420,000
4. Venezuela $378,000
5. Argentina $372,000
6. Canada $310,000

All-Cash Buyers
About 88 percent of all Argentinian buyers pay all-cash for South Florida real estate. That ranks second among all international Miami buyers. France (96 percent) has the highest percentage. Brazil (77 percent) and Colombia (65 percent) rank third and fourth, respectively.

About 81 percent of international buyers in Miami and Broward Counties paid all-cash, compared to 60 percent of international buyers purchasing across the U.S.

About 67 percent of Argentinian clients bought in central South Florida urban areas. About 68 percent of Argentinians bought condos versus the 20 percent who purchased single-family detached homes.

Argentinians Buy for Investment
Most Argentinian buyers intend to use their South Florida properties for investment reasons, according to the 2014 Survey of International Home Purchases conducted by NAR for MIAMI. About 42 percent of South Florida Argentinian buyers said they planned to rent their properties along with 32 percent who said they desired real estate for both vacation and rental. About 11 percent bought to have a vacation home; 4 percent listed undisclosed reasons; 11 percent didn't know.

About 38 percent of Argentinian buyers don't know how long they plan to use their South Florida properties. About 28 percent intended to use the real estate for one to two months; 17 percent for less than a month; 8 percent said three to six months; 9 percent said more than six months.

Safe Place to Invest
Like most South Florida international buyers, Argentinians view Miami as a safe, secure place to invest their money. Miami offers physical, legal, and economic security to many international buyers. As one of America's most dynamic real estate markets, South Florida has seen consistent real estate price appreciation during most years in past decades.

Miami single-family home prices have seen four years of consistent year-over-year increases, according to the latest MIAMI report. Miami condo prices have registered 48 months of growth in the last 49 months. The median sale price for single-family homes rose 14.9 percent, up to $280,000 in June 2015 from $243,700 in June 2014. The median sale price for condominiums increased 7.9 percent in June to $205,000 from $190,000 a year ago.

Miami Welcomes All Cultures
Argentinians also enjoy South Florida's unique multilingual, multicultural population. Miami is the most international city in the U.S. About 51.3 percent of Miami residents are foreign born, according to the U.S. Census. Miami's concentration of foreign-born residents is more than double the national average of 19.4 percent.

Miami's diversity is best seen in the public school system. Students at Miami-Dade County Public Schools, the nation's fourth-largest school district, speak 56 different languages and represent over 160 countries.

Affordability, World-Class Amenities
A global city with world-class amenities like the Pérez Art Museum Miami and the Adrienne Arsht Center for the Performing Arts in downtown Miami, South Florida offers international and domestic buyers a unique place to live, work, and play. Miami is also incredibly affordable compared to cities like New York and San Francisco.
A 120-square meter condo in Miami-Fort Lauderdale-Miami Beach cost $149,900 on average, according to the NAR 2015 Profile of Home Buying Activity of International Clients. The price for the same condo in London ($960,840), Hong Kong ($776,280), and New York ($1.6 million) were at least five times higher.

Direct Flights
Miami International Airport (MIA) offers non-stop flights to more than 150 cities, including 98 international destinations. Fort Lauderdale-Hollywood International Airport (FLL) offers non-stop flights to more than 150 cities, including 50 foreign stops.

Boosting the Market
Miami's growing number of international home buyers have provided immensurable benefits to the region and its residents. The buyers have enriched Miami's culture, helped turn our region into a year-round destination, inspired commercial and residential development, and helped lure some of the world's top entrepreneurs and international businesses.

Latin American banks, for instance, have proliferated in Miami as they follow their customers here. Miami has the largest concentration of domestic and international banks south of New York City, with approximately 87 financial institutions and 33 foreign bank agencies. More than 600 Miami companies maintain Latin American headquarters.

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