Local real estate agent offers investors reasons to buy in the Miami area – even with its skyrocketing prices | Real estate agents

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With scorching real estate prices, the Miami-area real estate market at first glance appears closed to investor opportunities. But there are plenty of arguments to convince them that buying a house here is worth it.

In a conversation with Dolores Urdapilleta, head of Urdapilleta Real Estateand an expert broker in the Latin American region, we learned insights into the enduring strength of the Miami area real estate market now and in the future.

How do you convince an investor to buy at this price level?

I am an economist and I prefer to refer to concrete facts about what is happening, economically and demographically. Today the most interesting part of our work is that you have to understand the market very well, and know how to explain it well to the client so that he can see what is happening in the different aspects, with rentals, with sales, with economic and demographic. It takes a lot of conviction and experience to give the arguments that show why it is appropriate to make an investment in the current context.

Those looking for a return in dollars, have it today, because the rents have also risen a lot, but there are no rents. Today, greater profitability is achieved when renting a property that is not new construction, which incurs other maintenance costs and expenses.

Isn’t the buyer afraid that we are at a peak and values ​​will depreciate soon?

You have to look at the facts. Today we have a low inventory and a demand that does not stop, because Americans arriving from other states, or Canadians or anyone arriving in Florida continue to arrive.

For prices to fall, there must be more inventory, but there is no easy context for there to be more real estate supply. With rising rates, those with a low rate loan are no longer leaving their homes as they head into a market with higher values ​​and higher rates. So we continue with little inventory and the demand is increasing. And new builds take time to generate more supply. That’s why when an ad appears that is priced, it’s sold the same day.

What is the impact of the current market on the investor who comes from Latin America?

The Latin American investor comes and will continue to come looking to protect their assets (and) in a place where there are laws and systems that work. …Plus, in Miami, people feel comfortable doing business because they’re dealing with like-minded people who they easily understand each other in their own language. It’s not the same doing business and having to deal with a lawyer, an accountant or service people here as in Houston, for example. There is also a very important aspect of trust. We try to build that kind of relationship, it’s not just a sale and then forget about the customer. We continue to work with them, we manage the property and we manage to sell when the case arises. When someone decides to invest, we are a team, we become partners in this company.

What worries you in the current context?

I worry about inflation, fixed costs. Everything has gone up – insurance and maintenance – which will impact profitability. And I’m concerned about new construction, which comes at very high prices. In any case, the current panorama is not that of 2008, this analysis is not correct. Miami today is another city, it’s another world. In the diagnosis, I insist on the fact that we must look at the economy and demography. In addition to Americans and Canadians, and many others arriving to live here, there is now a much larger traffic of people coming for vacations or looking for a second home because Miami offers all kinds of options. It is a more complete city, much more attractive than years ago.

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