Miami real estate statistics recently hit record numbers for home sales. So it's not too late to start if you are considering becoming a real estate investor. There is great potential in this exciting market.
To help you, we've put together this guide on real estate investing. You'll learn about the different types of property investment and how to find the best options for your budget.
Types of Investment Property
First, you'll need to consider what to do with your money, as property investment is a broad area. Here are some of the main types of investment:
If you want an investment that gives you regular, long-term returns, rental is your best bet. You'll need to understand your target audience and the people most likely to rent a property before deciding what to buy.
Perhaps you have a background in renovating homes. In that case, buying a property that needs repair and renovation will provide an excellent short to medium-term return on your investment.
For the most ambitious property investor, buying land and building on it is a great way to make high returns. However, building from scratch is complex, so this option does come with those risks.
Always Invest in a Great Neighborhood
Whatever type of investment you choose, location is critical to a suitable investment property. Here's what to look for in an excellent Miami neighborhood:
- Great local amenities such as parks, high-quality schools, and plentiful public transport
- Signs of an up-and-coming location that will be in-demand with renters, such as cafes, restaurants, and trendy shops
- A safe and secure neighborhood boasting a low crime rate
- New investment in the area, such as government-supported regeneration
The easiest way to learn about a neighborhood is to get in the car and explore the area. Take notes on what you spot in each location, and use this later when researching investment properties.
Using Data to Choose the Best Investment Type
Observing a location before investing in property is excellent, but it's not always practical if you live outside Miami. Besides, examining data will give you more concrete information about whether your investment property has the potential you expect.
Here's the sort of data you'll want to gather:
- What the local job market offers and median salaries
- School and college performance ranking compared to other locations
- Crime rate data
- Neighborhood rankings (popularity, safety, wealth)
- Rental vs. purchase as a percentage
- Growth in house prices
You'll also want to learn more about your target audience if you plan to sell or rent. Try and profile the most in-demand buyers and renters so you know which demographic to focus on when buying an investment property.
Gather information on:
- The average age
- Number of dependents
- Marital status
- Job and education level
Suppose the most popular demographic is 30 and under and single. In that case, you'll want to buy an investment property that meets the needs of that group.
That means small, low-maintenance properties with one or two bedrooms rather than something more significant (a four-bed property designed for families, for example).
Real Estate Investing Starts Here
Are you ready to join the exciting real estate investing world? Now is the perfect time to get your money working for you.
So start today by reviewing our property owner resources. See what potential is already on the market and get one step closer to your dream of running a real estate empire.