Investment opportunities in Miami – Why Miami is the new New York

More and more New Yorkers are moving to Miami. The original blog was written in 2014 and here below I have added some additional links for more updated information.

Contact David Siddons for more information about Moving to Miami. David is a top producing realtor and director of luxury sales with Douglas Elliman. He is known as a market analyst and the author of Miami’s most influential market reports and forecasts

David Siddons | 305.508.0899

Investment opportunities in Miami - Why Miami is the new New York DSG

Why Investing In Miami Real Estate Is On Everyone’s Bucket List?

Please refer to the above information for our latest relocation articles. The below information was written in 2014!


From Apples to Oranges


New Yorkers are buying up Miami Real Estate and they are not shy to spend some money. Many luxury realtors have noticed that the New Yorkers  are buying their way into Miami and are now competing with the South Americans over the most luxurious properties. New York City’s most influential players are moving down South and the reasons are plentiful. They don’t just come to enjoy the sun and the Beach, because nowadays Miami’s Financial Sector and Business is as booming as is Miami Real Estate

Here is why New Yorkers see many Investment opportunities in Miami:  lower taxes,  lower cost of living, luxurious real estate and the nightlife and beaches don’t hurt either.

Investment Opportunities in Miami: Lower Taxes

The main reason why New Yorkers travel south is because of New York’s rising state income taxes. The top earners see huge chunks of their money disappear into governments pockets. As Florida doesn’t have any capital gain taxes, state income taxes, or estate taxes your return on investment will be much higher.

So if you think about it, a hedge fund manager reporting $1 million in income can expect to pay only the federal government, whereas his counterparts living in New York City and Connecticut will fork over an extra $104,300 and $67,000 respectively.

In Miami Today News one of the City’s brokers (Mr Morr) is quoted saying: “If you earned $1 million in New York and paid 12% combined state and city income taxes, that’s $120,000. If you’re able to homestead in Miami and not pay those taxes, that would buy you a $1.5 million house.How? The cost of finance a $1.5 million house with taxes, insurance and mortgages is about $10,000 per month or $120,000 a year“. The above equals a free house, you could live in a Miami $1.5M house with the money you saved by leaving New York.

According to Bloomberg some big players in the financial world (among which Lloyd Blankfein – CEO and Chairman of Goldman Sachs) have purchased a Condo in Faena House, a new $1 billion Miami luxury condominium development. Faena Miami Beach is an 18-story ocean condominium featuring 47 residences ranging from $3 million to $50 million, the report said. Faena House is currently selling for an average of $2,400 per Sq.Ft.

Mark Spitznagel,  founder of hedge fund Universa Investments, is also moving his company to Miami. He told Business Insider:  “Florida’s business-friendly policies … offer the perfect environment for us as we expand, I would expect to see more firms like Universa voting with their feet and relocating to a more hospitable business and tax environment, especially as many local governments are trying to tighten their grip on businesses.”

Investment Opportunities in Miami : Financial Hub

Miami is the second Financial Hub in the US right after New York. Many International Bank has established itself in Brickell, which is Miami’s financial district. The Miami Downtown Development is creating an environment attractive to bankers in order to establish Miami more and more as an important financial hub in the States as well as for South America

At this moment there are approximately 70 hedge and private equity funds headquartered in Florida. Among which investment companies such as Everest Capital, which manages an estimated $2.3 billion, and private-equity companies like Trivest and HIG Capital.

And with the growing Latino market, setting up shop in Miami means capitalizing on a growing Latin American client base.

Investment Opportunities in Miami: Lower Costs of Living and Lower Real Estate Costs

The Costs of living in NYC is between 10-40% higher than in Miami and Real Estate Prices being a significant factor in this. As Space is more freely available in Miami than in NYC where space is limited unless you have very very deep pockets. In General Miami Real Estate is relatively cheap when comparing Miami to other Luxury Markets (see graph here below)

Our own EWM CEO Ron Sheffield affirms that local property values have been a major draw to American homebuyers in the past three years.  “When you compare with other world centers we are a fraction of the cost. You can literally buy three or four of our Brickell Avenue condos for the price of one in New York,” he said. Miami’s most luxurious waterfront Condos are $3,000 per Sq,Ft, an amount that does not shock investors from New York

Investment Opportunities in Miami: Miami’s Luxury Real Estate

Miami offers a wide range of ultra luxurious Real Estate. From waterfront homes in Key Biscayne to Luxury Condos in South of Fifth there are plenty of real estate investment opportunities in Miami. As described here above Miami’s Real Estate is still affordable in comparison with other Luxury Real Estate markets in the world while offering (in most cases) direct access to the beautiful South Florida Beaches.

Investment Opportunities in Miami: Miami’s Quality of Life

Miami rose to seventh place in a recent survey of the most important global cities to the world’s wealthy.

Miami and New York were the only North American cities to make the top ten list of the Wealth Report, which is issued annually by London-based real estate consultancy Knight Frank. The report includes the Global Cities Survey which ranks cities based on four factors: economic activity, quality of life, knowledge and influence and political power, as well as taking into account the number of ultra-high net worth individuals who call each city home.

Miami ranked fourth in quality of life; ninth in economic activity, eighth in political power, and 10th in knowledge and influence.

Miami, which ranked eighth last year, outranked every other city in the Western Hemisphere with the exception of second-ranked New York. Miami outperformed Paris, Beijing and Dubai. The Global Cities Survey predicts that Miami will remain in the top ten for at least the next decade. New York and London will continue to vie for the top two spots over the next ten years, according to the report.


For more information about the Miami real estate market please contact the David Siddons Group

David Siddons | 305.508.0899 |


These are the most commonly asked Google Real Estate Related questions

1. What are the Current Best New Condos in Miami?

If you want to hear in more details our opinions on the best new Miami new construction condos. Please read this article:Best New Construction Condos 2022-2023

2. What is the best New Construction Condo in Fort Lauderdale?

In our opinion, the Residences at Pier Sixty-six are certainly the most interesting and unique. Already well underway this 32 Acre project will be home to the first of its kind Marina where owners will be able to anchor up vessels up to a staggering 400 ft! For specifics of this project see our independent review of this project.

3. How can I compare the new luxury construction Condos to the best existing Luxury Condos in Miami? 

Our Best Luxury Condos in Miami article will prove to be very useful to those looking to compare the existing to the new. You may also want to watch this video which shows the performance of the best Condos in Miami over the last 15 years!


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David Siddons
Akbota YerseitAkbota Yerseit
13:29 03 Jun 22
Excellent leaders!
Cathryne HaladnerCathryne Haladner
12:12 18 Sep 21
We have only superlatives to describe how wonderful Cris Buzolin was throughout the process of selling our townhouse in Coral Gables. We were away in the UK while the transaction was taking place and Cris handled everything-from clearing out our house, selling contents when she could, arranging the moving and storage and dealing with some very difficult problems which arose. Always patient and very willing to help in every way, Cris is a consummate professional who really cares about her clients and worked extremely hard to get the price we had asked for and make things for us as easy as she could. Nothing was too much for her to handle.Cris and Marianela (who provided additional very helpful assistance to us during the transaction) are part of the team that David Siddons has assembled.When we decided to sell our property, we contacted David and he established the framework for the transaction and ensured that everything proceeded smoothly and in accordance with our wishes. In sum, David Siddons and his team are extremely competent and professional and we are totally satisfied with the service they provided. To repeat, Cris Buzolin in particular, went way beyond what one would expect from a real estate agent. The David Siddons Group has our highest recommendation!
Jose Eduardo FilhoJose Eduardo Filho
17:17 13 Jul 21
I thank the whole team and especially Cris Buzolin who, in a very professional and competent way, helped me to sell my property safely and in the best market condition.
Idan Singh (Idan)Idan Singh (Idan)
19:53 07 Jun 21
Great Service for British Expats looking to move to the States.
Simone GarrettSimone Garrett
17:20 26 Feb 21
Fantastic group of people to work with!! David and Adriana were responsive and professional throughout the entire process. We weren't familiar with South Florida so David took us under his wing and did a fabulous job giving us a tour of select neighborhoods in South Florida and shared a great deal of information about each. We fell in love with the Botaniko community in Weston and closed the deal with Adriana. If you are buying/selling this is the team you want to work with!! Thank you guys for helping us find our dream home.

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