A Real Hype in the Southern Florida Property Market!
After a slow year across in the Southern Florida property market – due to the dominated oversupply of luxury inventory, and the lack of buyers due to the strong performance from the dollar, however 2018 has presented the perfect time for interested investors to buy luxury apartments, penthouses and condos in Fort Lauderdale and Miami.
The softened prices gives that bit more leeway, with developers and sellers willing to offer 10 to 20% reductions on the price of property; the benefit for new buyers will be that the lack of new construction, allowing the current oversupply to be absorbed comfortably.
Less Tax and Huge Savings?
The new U.S tax reform bill could mean huge savings for people willing to relocate to this income tax-free state; with an aging population that prefers luxury living and nice weather for their retirements, it’s ideal!
Lack of New Build and a fantastic tax environment = price increases
As mentioned above – a lot of experts expect that Southern Florida property prices for luxury properties will remain flat throughout 2018, this is due to the oversupply that needs get absorbed by new buyers and investors.
Developers and sellers will be encouraged to offer price incentives to move both resale and new build properties, although some market factors could lead to price increase and these incentives may not be around for long!
According to a Real Estate Agent in Miami: The future pipeline for luxury projects in South Florida is almost zilch right now,” he said, “and that lack of new supply is going to hit everyone.”
“For those buyers who do want something new, they will need to act now and purchase – otherwise they should plan on either picking up a resale unit or waiting till 2021 or 2022 for anything else to really hit the market!”
Southern Florida is becoming more attractive now that residents of high tax states such as California and New York can no longer deduct state and local income taxes from their federal taxes.
This could result in significantly lower tax bills if these people relocated to Miami.
South Florida Property Amongst the Real Estate Trends
North of Miami Beach in Fort Lauderdale – a city that is ranked 6th amongst U.S cities in an Emerging trend in Real Estate – with buyers now expecting to pay 200% less on a price-per-square-foot basis than they would in Miami for a similar property.
Historically prices have always been slightly different, between 25% and 30% – not to this magnitude.
Although the prices may be lower in Fort Lauderdale – you have to remember that Miami, you’re buying the luxury property label, and the fact you’re in Miami – one of the top trending real estate markets In the world!
The Southern Florida Property Market is one of the top interests for foreign buyers when focusing on the U.S.