Attracted by what they said are cheap and ready to pay cash prices, Latinos have become buyers of condominiums, apartments and houses, as part of its investment strategy or just to have a second home. They are taking advantage of the money that allowed them to gain the momentum of the economies of Latin America, a region that managed to bear with dignity the global financial crisis. Not only are they hunting for houses. Come to the city to launch the shopping and take possession of all kinds of goods, from iPads and designer dresses to overpriced jewelry.
This wave has revitalized the business property in Miami, where developers are presenting new projects even when Florida was one of the hardest hit by the housing market collapse. He also turned the city into one of the essential destinations for international investors.
"Latin America has helped revive our market," said Jorge Perez, CEO of Related Group, a leading real estate companies in South Florida. Venezuelans lead this phenomenon. Like many Latin Americans, they historically have turned to real estate in Miami as a safe investment in times of political and economic volatility in their countries. According to the Association of Realtors Miami, Venezuelans were the biggest buyers in 2011 and accounted for 15% of all sales to foreign customers, closely followed by Brazilians and Argentines.
Last year, sales of homes and condominiums in Miami rose by 46% compared to 2010, which involved a record, the association said. The condo prices began to recover in the second half of last year, while values in several Latin American countries have for years been rising steadily.
Chávez effect
Venezuelans better position, with reduced investment opportunities at home and worried about what they describe as a crackdown on the property market in the country by President Hugo Chavez, have become coveted clients for real estate agents and brokers.
"They take away their checkbooks," said Harvey Hernandez, who was born in Venezuela and is now manager of Newgard Group, a firm that develops BrickellHouse, one of the first apartment towers to be built since the collapse of the market. More than half of the 374 units were sold BrickellHouse, Venezuelans and represent 40% of buyers. The tower, located in the business district of Miami overlooking Biscayne Bay, will begin construction later this year. Venezuelans have helped revive the property market in suburban Miami Doral and Weston, home to large communities of compatriots.
"Is Chavez effect," he said Cleto Puzzi, a Venezuelan who had sold an apartment in Spain and bought two in Doral, now rented. "You can not invest in Venezuela now," he added.
The wave of expropriations began Chavez has scared many Venezuelans good position. Last year, Chávez passed laws that make it harder for landlords to evict delinquent tenants, something that frightened property owners and cooled interest in one of the few investment options in Venezuela.
sophisticated Brazilians
A recent report RelatedISG a real estate group based in Miami, said prices of the apartments and condos in downtown Miami were lower than newly built properties in several South American cities like Rio de Janeiro, Sao Paulo, Buenos Aires and Bogota. The exorbitant prices in Brazil also led the Brazilians to search for properties in Miami. Driven by the recent appreciation of the real, the Brazilian shoppers are also noisy shopping centers, where Portuguese language is already part of the environment.
For Brazilians, "everything is so cheap. Dine, buy a shirt, buy a condo," said Claudio Stivelman Jacques, president Shefaor Development Company, based in Miami and a native of Brazil. Brazilians with big money have generated particular interest in Miami real estate agents, who say that South American look sophisticated oceanfront properties. "They are buying into the range of more than a million dollars," said Zalewski.
Foreign interest is not limited to purchase real estate. International developers are also involved in more than 20 building projects, many of which could be offered to investors worldwide.
in cash
The interest of Latin American has led the real estate developers, many of whom suffered losses during the housing crisis in the United States, to adopt new models of financing and sales. Before the bubble burst, depended heavily on bank financing. But as the crisis unfolded, entrepreneurs began to see how customers abandoned their deposits and how banks, worried by falling house prices, closed access to credit. Soon, empty towers abounded in the Miami skyline.
Because Latin American and other non-American buyers now account for a majority of sales of real estate in Miami, developers have adopted a more targeted financing option to pay in cash, preferred by international buyers.
The pay as you go system (pay as construction progresses) means buyers finance as certain stages of construction are met. It is widely used in Latin America and requires buyers to pay up to 80% of the final price of the property before it is finished. "I do not think it's a long-term stance is a reaction to the current shape of the market," said Perez.
Iván Pérez, a lawyer of 40 years in Caracas, recently bought two apartments in BrickellHouse 250 and 400 thousand dollars. "Miami is like my second home," he said. The political instability in Venezuela was one of the major factors in making the decision, he added.
Some real estate entrepreneurs who frequently work with Venezuelans expect their interest in the Miami real estate market remains strong, especially if Chavez wins the presidential election later this year.
Eli Santurio, sales manager of Keyes Realtor, said many employers in the sector are joining Venezuelans when monitoring the campaign for the October vote. "That's what everyone is talking about," he said. "If Chavez wins, then sales could increase a lot," he added.
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