Increasing Numbers of Brazilians Buying Miami Property
02 September 2011
According to a report in Forbes, Miami is still proving popular with Brazilian buyers. The Miami Association of Realtors has reported that 9% of residential property transactions in 2010 had a Brazilian buyer, and that figure is projected to increase to 20% this year.
Around 300,000 Brazilians currently live in Florida, and many purchase second homes in Miami. In 2010 more than half of all properties sold for more than $500,000 were bought by Brazilians, as well as nearly half of all the million-dollar properties on Miami Beach.
The properties are being bought by middle and upper-middle-class Brazilians who are able to buy US property for less than compatible property in Brazil. Miami is ideal, as it is close to Brazil and the weather is good.
At the moment the Brazilian economy is booming, and unemployment is currently just 6.1%. The Brazilian real has grown in strength against the dollar, making property much more affordable. US interest rates are also more attractive, as in Brazil they are currently in double digits, and many Brazilians are either paying for homes in cash or are putting down large deposits.
An average 1000 ft.² apartment in a decent Miami neighbourhood would typically have a starting price of around $250,000, which works out at $2,500 a square foot, or R$4000 per square foot for Brazilian buyers.
This compares very favourably with property in a decent neighbourhood in São Paulo, where property would typically cost around R$10,000 a square foot. Miami has a lot to offer Brazilians, as the infrastructure is often better, and the properties are often better constructed.