Why More and More High-Net-Worth Individuals Move to Miami
Why are so Many High Net Worth Individuals (HNWIs) Flocking into Miami?
When the Senate passed the tax bill last December, high-tax cities (New York, Chicago, New Jersey, LA (and the area of Silicon Valley), Baltimore, Washington etc) became even more expensive. That realization has caused many to consider moving from high-tax to lower-tax states. Nearly all states have an income tax, ranging from 1-13%. Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming are the exceptions because they do not tax residents’ incomes. Millionaires from high-tax states like New York can save more than $1 million in taxes by moving to Miami and Miami is welcoming them wholeheartedly.
Since the announcement of this new bill Miami has seen a large increase of new residents mainly from New York City, New Jersey, Baltimore and the Sillicon Valley area.
Why Would You Move to Miami, besides Financial Reasons?
1. The Miami Lifestyle
Imagine you live in one of the world’s most exciting cities and you have to choose an alternative? You most likely prefer another global city that is highly desired by high-net-worth-individuals. Miami is a top rated, world class city with the finest restaurants, events, nightlife, fashion, arts and of course 350+ days of summer. There is no explanation necessary as to why Miami is an exciting city, but people are starting to realize Miami is more than just beaches. It is an important business hub hosting hundreds of regional or global headquarters, it is the link between Latin America and the USA and it’s financial sector is called the “Manhattan of the South”. Miami is booming in many ways!
This is one of the reasons why in the last few years Miami has gained more and more attention from wealthy families as a place for principal residency.
2. Miami Real Estate Options
Miami is home to some of the world’s most opulent and exclusive real estate options and its prices per SF are still relatively affordable compared to other global cities. Miami offers many gated communities, waterfront lots, and luxurious sky scrapers with top notch amenities, services and world-class concierge services. Katie Warren from Business Insider recently compared three NYC properties to three Miami properties and found a great difference in general living space, spacious layouts, generous outdoor space, and waterfront views. It quickly became clear that money buys you a whole different type of luxury: The Miami homes are larger and often have generous private outdoor space, as well as waterfront locations, surrounding greenery, and swimming pools.
3. The Best Private Schools
Miami offers many A-graded private schools that are also more affordable than NYC’s elite schools. With education levels on a par with NYC, families feel more and more confident to make the move to Miami. Interesting fact is that the influx of affluent out-of-state buyers is creating huge waiting lists at Miami’s most desired private schools.
Palmer Trinity School, an independent college prep Episcopal is seeing a jump in families from New York and New Jersey, while Miami Country Day School is seeing increased interest from families from New York, Boston, Chicago, Los Angeles, and Houston. Gulliver schools, one of Miami’s most sought-after private schools, commented there is a strong interest from families relocating to Miami both from high tax states as well as from around the world. According to the Miami Herald, Avenues, an elite private school that opened in New York City in 2012, is set to open a Miami location. Annual tuition for Avenues is $56,400.