The Attraction Of Miami Real Estate For The Chinese Investor

Miami real estate is a favorite with foreign investors. Miami is a cultural and trade hub for the Caribbean, Central America, and South America. The port and the airport in Miami have more cargo and travelers pass through it every year than almost any airport in the world. Miami attracts an enormous amount of internal migration from the Untied States as well. Miami is a boom town, and boom towns are good for real estate.

Florida in general, and Miami in particular have shrugged off the effects of the Great Recession, and Miami real estate is in demand from investors looking for a great place to make money, along with many people who want to make the Miami area their new home. Miami real estate has become a prime destination for the Chinese investor, too.

To a Chinese investor, Miami real estate ticks a lot of boxes. Many wealthy Chinese have accumulated large cash reserves due to the explosive growth in world trade, but are unable to find appropriate places to invest in their own country. The Chinese economy has enjoyed runaway gains, but their markets are still very volatile, and many investors seek a more reliable market for their portfolios of investments. According to real estate is a particularly stable investment, especially if it’s in a country like the United States where property is considered a great way to earn equity on an asset that can be used, not just held.

Because the Miami real estate market has returned to pre-recession reliability, investors in properties in the area can enjoy the promise of steady increases in equity along with excellent liquidity. While the most expensive properties might have to stay on the market for long periods in order to receive a top price, at every other level of the market, a Chinese investor can expect to sell their Miami real estate in a matter of weeks without having to offer it at fire sale prices.

Not all Miami real estate for the Chinese investor is strictly a vehicle for diversification of investments. The turmoil in Chinese markets is more than just financial. Many wealthy Chinese have made very long-term plans that include retirement or emigration to countries like the United States. While the majority of Chinese emigration lands on the west coast of the United States, more are looking at other markets where they might like to live in the future. Most of the west coast real estate markets are very expensive, and there is very little room for appreciation. Countries like Canada have also been a favorite destination for the Chinese investor, but Miami real estate is more attractive simply because the climate is so congenial compared to Vancouver or Toronto.

Another consideration for the Chinese investor who buys Miami real estate is the possibility of educating their children in the United States. The popularity of condominium projects in the Miami real estate market means that affordable housing is available as an investment, and their children can live in it while they attend one of the many schools in the area. After graduation, the condo can hopefully be sold at a profit, or the parents can move into it as their retirement home.