Invest in Miami Real Estate to Maximize Your ROI
Investing in Miami real estate is one of the best ideas. There are many Miami neighborhoods that have shown an increase in property value. Investing in these neighborhoods is a good idea as it will likely maximize your potential return on investment.
In this post, we will list Miami's 7 best neighborhoods to invest in, so get ready to stroll through those tree-lined streets.
Residents love this hip and artsy neighborhood that features swanky art galleries, trendy bistros, and chic boutiques. It's become one of the hottest neighborhoods in the Miami area.
Wynwood is great for investors because most of the units are sold for a low cost, but their rental rates are high. The rental rates are at an average of $2,500 a month.
In addition, there are new luxury condos springing up in this neighborhood. From commercial space, office space, retail space, to two-bedroom condos, the district is expanding more and more each day. This means that there will be more investment opportunities.
2. Little Haiti
Residents love this neighborhood because it is so culturally diverse. Back in 1970, Haitian immigrants were settling in this area. That’s where its name comes from! Other immigrants from Caribbean nations have also settled here as well.
For this reason, this community has vibrant events, delicious Caribbean flavors, and a rich cultural scene. Plenty of well-known galleries have also moved from Wynwood to Little Haiti, such as Mindy Solomon Gallery, Emerson Dorsch, and Pan American Art Projects.
This part of Miami, located north of Wynwood, is truly up-and-coming when it comes to Miami real estate investments. The price per square foot is lower than many other neighborhoods in Miami like Downtown Miami, and the average price of rent is on the rise.
Miami's Edgewater is an emerging community. Its quick growth is due to its proximity to Design District, Park West, and Wynwood area.
The new Miami housing developments in Edgewater focus on the following projects:
- Multifamily condo
- Upscale single family home
- General multifamily projects
Many modern waterfront condos have recently been built in Edgewater, and more are currently being constructed. Some of the top and most popular condos in Edgewater include Elysee, Paraiso Bay, Biscayne Beach, and Missoni Baia.
To rent an average condo in Edgewater, the asking price is around $4,000. That said, the average sale price for these rental properties hovers around $690,000.
4. Downtown Miami
Downtown Miami provides great potential for profitable investments. The Central Business District of Miami-Dade County is the largest economic and financial center in South Florida. It's a neighbourhood close to both the city center and Northeast Miami.
This area is home to numerous points of interest for residents and visitors alike, such as Bayfront Park, the InterContinental Hotel, and Bayside Market. Also, plenty of well-known restaurants have opened their doors here.
A condo and apartment here have wildly differing price-to-quality ratios. There are a lot of alluring properties available. However, you should definitely do some research before committing to purchasing a rental unit in South Miami.
5. Miami Design District
Did you know that this neighborhood is like New York City’s SoHo? The design district in Miami has a vibrant mix of furniture showrooms, high-end fashion retailers, art galleries, street art and leading dining experiences.
The hundreds of luxury shops lure visitors from all over the States, as well as international tourists. Miami real estate investors face multiple opportunities for growth here.
If you are looking for a stream of passive income, then real estate investing in the Miami design district may be for you. The rental rates are on a steady climb.
6. Midtown Miami
This up-and-coming neighborhood is a large-scale development that has plenty of restaurants, retail outlets, cafes, shops, and residential properties. The bustling neighborhood is only 7 minutes away from Downtown Miami.
As an investor, you should consider Midtown's neighborhood. It’s close to Downtown Miami, but it has significantly lower real estate property and rental home expenses compared to the Central Business District. So, it’s a good option.
The rent prices for this Miami neighborhood's properties have shown consistent growth over the years. Even though it isn't a waterfront neighborhood, it still shows a lot of potential. The median sales price for a Midtown real estate property has gone up an average of 28.6% in the last year with affordable median listing prices per square foot for the Maimi area.
7. Miami Beach Property
This famous Miami Beach neighborhood resort area draws tourists from all around the world. It's already been booming for a long time, but there are still multiple real estate projects underway. In North Miami Beach, you can even see the famous Biscayne Bay, a subtropical lagoon just a drive away!
The rental rates have proven to hold quite steady over the last few years, but there have been fluctuations in overall property or home prices. You should keep an eye out for sudden drops that can help you enter the lucrative Miami real estate market more easily.
Tips for Investment Property Purchase in Miami, FL
Miami real estate investments require careful planning.
- Decide if you prefer a short-term or a long-term real estate property strategy
- Consider the pros and cons of each location before choosing the right one to invest in
- Create a detailed plan: state your long-term financial goals, and determine the steps you will take to reach them
- Decide whether you will self-manage or hire a property management company: weight out the pros and cons
Miami's Best Areas to Invest In
Miami offers a multitude of investment opportunities for rental property investors. Several neighborhoods located in Miami show a steady appreciation trend. This means that there is potential for an increase in the value of your purchased investment rental property.
Many people enjoy these areas as they are some of the best Miami neighborhoods to invest in: