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

     

                

Colombian Home Buyers Rank among South Florida's Top International Clients

by | Mar 23, 2016

Colombian Home Buyers Rank among South Florida's Top International Clients

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Colombian consumers buy the third-most South Florida real estate among all foreign countries. The South American nation registered 10 percent of South Florida sales last year, according to the 2015 Profile of International Home Buyers in MIAMI Association of REALTORS® Business Areas. The National Association of REALTORS® (NAR) conducts the annual profile for MIAMI.

Miami’s multicultural and multilingual population, tropical climate, global business center, and world-class amenities are some reasons why Colombians purchase property here.

South Florida's top international buyers in 2015:

Country Percentage of South Florida foreign sales

1. Venezuela

13%
2. Brazil 12%

3. Argentina

10%
  Colombia 10%
4. Canada 7%
5. Mexico 5%
6. France 4%
  Italy 4%

 

Colombian Buyer Characteristics

Colombians preferred Broward over Miami- Dade County, according to the 2015 Profile of International Home Buyers in MIAMI Association of REALTORS® Business Areas. Colombia ranked as the fourth-largest foreign buyer in Miami-Dade by registering 8 percent of all foreign transactions. Venezuela (26 percent), Brazil (13 percent) and Argentina (12 percent comprised the top three.

In Broward County, Colombian home buyers finished with the third-most purchases among all foreign buyers. Colombian consumers accounted for 12 percent of all foreign transactions in Broward. Canada and Venezuela (both at 16 percent) finished first and second, respectively.

Colombians paid on average $516,000 for South Florida properties, which is significantly higher than the $258,000 average among all buyers in Florida.

Country Avg. Purchase Price for South Florida Real Estate
1. Brazil $766,000
2. Colombia $516,000
  Argentina $516,000
3. Canada $510,000
4. Venezuela $488,000

 

All-Cash Buyers
About 66 percent of Colombian buyers paid all-cash for South Florida real estate in 2015. Among all foreign buyers, Colombia ranked fifth for percentage of cash sales. Canada (86 percent) finished first, followed by Argentina (80 percent), Brazil (75 percent) and Venezuela (74 percent). About 75 percent of South Florida international buyers paid all-cash, according to the 2015 Profile.

Most Colombian buyers purchased condominiums in the central city/urban areas. As far as the type of property, about 46 percent of Colombians bought condos versus the 37 percent who purchased single-family homes. About 69 percent of Colombian clients bought in central city/urban areas.

Colombians Buy Properties for Rental Reasons
Colombians mostly use their South Florida property for residential rentals. About 39 percent of Colombians intend to use their properties for residential rentals; 23 percent for primary residence/retirement; 12 percent for vacation home; 14 percent for vacation and rental; 3 percent for student use; 2 percent listed other reasons.

About 50 percent of Colombian buyers intended to use their South Florida properties for up to six months each year.

Safe Place to Invest
Like other international buyers, Colombians view Miami as a safe place to invest their money. In an ideal location for a resort lifestyle, Miami provides foreign home buyers safety of investment that they don’t typically see in their respective homelands. The U.S. has a trustworthy legal system, which places importance on property rights.

Historical-low interest rates in addition to world-class condominiums with oceanfront views are attracting international home buyers to South Florida.

Miami Welcomes All Cultures
Colombians 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.

Students at Miami-Dade County Public Schools, the nation’s fourth largest school district in the U.S. with 345,000 pupils, speak 56 different languages and represent over 160 countries. Miami’s multicultural background can be best seen in its list of international home buyers.

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 not only a dynamic place to live, but it’s 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 National Association of Realtors 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
Colombians are part of a significant number of South Florida international buyers who are increasingly purchasing property in South Florida. The foreign clients want to live, work, and play in our multicultural, multilingual region. The international buyers are not only paying more on average for properties, they tend to do it with all-cash.

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