Crash, Correction or Continued Growth? | Fort Lauderdale Real Estate Market Report 2022/2023 (Part 3)

Real estate markets are always shifting. While the Miami condo market is more volatile, which presents both risks as well as opportunities, the single family home market is seeing a more steady upward trend. In both markets you can get great investments if you have the right information and guidance!
Regardless if you’re an investor looking to buy and rent out, or if you’re a relocating buyer trying to figure out if you should mobilize your hard earned money to buy a home rather than rent, this article will come in useful. The principles for both groups to buy is the same. The rental market is very very strong.
The below video interview is from 2020, although dated from 2020 it perfectly captures the difference is volatility and sustainability between the condo market and the housing market, which is evergreen advice.
In part 3 of our 2022 Miami Real Estate Forecast we discuss the Miami rental market, mostly the Miami luxury rental market. In this article we explain why Miami’s rental market boomed and became such a solid investment.
The Miami rental market has completely changed in the last few years. While your typical investor market was (and still is) dominated by investors who put their units up for rent. This market was pre-dominantly built-up with Latin American flight capital. Miami’s urban core for example is mostly owned by Latin American investors who at the time they bought this product were very focused on getting their capital out of their respective countries and to invest in a solid, dollar-based market. This typical rental market is now shifting to the single-family markets. This shift is happening because of the high demand for single-family homes, the robustness of the single family home market and the more attractive return on investment. Read part 3 of our report to learn more about investing in Miami and Miami’s shifting rental market.
To determine whether a property is a good investment property (here defined as a property that brings you the most return on investment) we looked at asset appreciation over time, the cap rate from potential rental, general ease of upkeep and ease of renting the unit. The cap rate is the annual return on investment from renting the property out.
This is a rough and simplified guide for a $1,000,000 property with a 20% downpayment and a $800,000 mortgage. We cannot generalize* the Miami real estate market, but for the simplification of this example we assume that a $1M dollar home or condo can be rented for approximately $6,000 per month
*Of course costs like maintenance and upkeep vary from property to property and these should always be considered on a property specific basis.
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