The condo market in Miami has slowed down somewhat however, the new ultra-luxury developments are still on the way, projected to deliver over 20,000 new condos in 2018. However, the rental market in Miami is heating up one more time. Actually, the condo-rentals are experiencing a boom because more and more people are interested in renting rather than paying mage-dollars for the overpriced condos. Let’s face it, the carry-over cost for condo in Miami these days is super expensive. Most of the newer buildings in downtown Miami are paying between .75c to $1.00 per square foot, plus approximately 2% of the purchase price for taxes. Condos on the ocean in Sunny Isles Beach are paying even more – between $1.00 to $1.50 per square foot according the Sunny Realty – http://www.sunnyrealty.com/ – a leading local real estate company.
2018 will bring about 12,500 new rental apartments in the Miami area, according to Miami Downtime Residential Authority. There are about 2000 more rentals that are slated to hit the market this year. So, yea, plenty of inventory in Miami to buy or to rent.
Speaking about the new Miami’s apartments, most of them have a lot to offer like pools, gyms, business office, restaurants and many other perks. The apartments range between the smaller studios with at least 650 square feet, one bedrooms which are start at about 850 square feet, two bedrooms start at around 1,200 square feet and the three bedroom apartments typically start from at least 1500 square feet. The price for the newer construction apartments for rent will vary between $1.80 to $2.70 per square foot. For a single bedroom apartment, you will likely pay between $2,000 to 2,500 per month. Although the price is high it is worth it because of the amenities the building offers.
Where can you afford and Buy an Apartment?
The above-mentioned prices are high for the targeted market but it is also a fact that most of the new buildings are filling up quickly. In the Melody tower for example, about 85% of the apartments were leased in the very first week of the building opening. Another tower Grove station was open this January and now it is 65% full.
- Among 14 residential developments in the city, 11 are rentals.
- 10 developments have been completed in the Brickell, Edgewater, and Arts & Entertainment District and they have more than 2000 units.
- The Brickell center has a mix of luxury condos, hotels, shopping centers, and offices.
- Another developer ZOM is set to start a new rental tower with 429 units and the CIM group is delivering 863 apartments in summer 2018.
- The wave of rental properties will continue to experience a boom time because there are about 150,000 people who travel for work each day and about 200,000 office jobs are opening.
So there are a lot of rental buildings that are beyond the city to handle.
The Estate Planning
The most important thing that most of the buyers of the apartments should keep in their mind is the estate tax. Generally speaking, if the person who owns a property and he dies then the property that he owns will be subjected to the taxes anywhere between 30% to 40% of the total value of the property which was at the time of the death.
All homeowners in Florida pay taxes. They also have to pay tax on the income that is generated by the property they own. All the real estate taxes are administered on the local level. This tax is paid on annual basis and the rate is about 1 to 2 ½ % of the total value of the property. The owners have to pay these taxes from November to April but if you pay the tax in November then 4% discount will be offered to the owner. In Florida, there is no state income tax. The exemption is also available to the residents in Florida but it is not automatic. The owner of the home has to file for this with the help of the county property appraiser. If successful, the exemptions are granted as well as a reduction of $50,000 will be granted to the homeowner as a homestead on the total value of the property. The homestead has many benefits, including protection from the creditors, etc.