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  2. Planning on making real estate investments in Miami? Learn about its history

Planning on making real estate investments in Miami? Learn about its history

Planning on making real estate investments in Miami? Learn about its history and its most notable influences.

biscayne-bay-view-miami-downtown-my-condo-shop-1

 

The city of Miami is an exceptional point of cultural integration that combines not only its Spanish, European, and native indigenous influences, but also the contribution and color of the Latino community in what is known as the capital of the “Sunny State”.

On July 28, 1896, Miami obtained the title of city. Before, the city was known as Biscayne Bay, which borders the Atlantic coast of southern Florida. Miami and Miami Beach currently occupy part of that territory along with Biscayne National Park.

Biscayne Bay was originally home to the Mayami, Tequesta, and Calusa indigenous ethnic groups. Then the Spanish arrived and controlled these lands for three centuries. Juan Ponce de León was one of the first Spaniards to arrive in the United States and who gave Florida its current name. The English, for their part, did the same by taking control of the territory. Already in 1821, the United States would take final possession.

Julia_DeForest_Tuttle

Julia DeForest Tuttle – Mother of Miami

In this story, a woman played a fundamental role. Julia Tuttle was a businesswoman dedicated to agriculture, born in Cleveland, Ohio, on January 22, 1849. Her vision motivated her to suggest the construction of a highway that would extend Florida’s eastern coastal route to Miami. This same vision not only led her to be known today as the Mother of Miami but also to be the only woman to found what is now one of the most important cities in the United States.

Over the years, and with the accelerated development of the region, Miami was transforming its daily life. With some of its properties, Miami still reflects part of those Mediterranean influences from the beginning of the last century.

Real estate investments in Miami Florida have transformed this port city into an important commercial reference for the real estate sector since its status as a global city has allowed it to become a hub for financial development, entertainment, tourism, and cultural fusion. for the United States. In fact, the United Nations estimated that Miami became the ninth-largest metropolitan area in the country and the seventh in terms of population. 

 

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Miami smart city self driven cars venetian causeway

 

Miami Smart City: Technology closer to us

A smart building? Safer streets? Synchronization of my security systems at home? Now it is possible.

In Miami, smart real estate investments must include the study not only of the adjacencies of the home or office but also their direct connection and relationship with the advantages offered by technology. Generally, we associate these technological benefits with security and protection aspects. Today we can also think about comfort and practicality within the home or office.

 

In this way, real estate investments in Florida are open to a new type of investor. An investor who will now not only be governed by the premise Location, location, location, but also by the benefits and savings of time and money associated with the efficient use of technology as an ally of their daily lives and comfort.

Do you want to be part of the new history of Miami? Contact me and  I’ll give you the best advisory whether you’re buying a new condo or home.

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  2. Three charts that tell us this is not a housing bubble

Three charts that tell us this is not a housing bubble

3 Charts That Show This Isn’t a Housing Bubble

3 Charts That Show This Isn’t a Housing Bubble

With home prices continuing to deliver double-digit increases, some are concerned we’re in a housing bubble like the one in 2006. However, a closer look at the market data indicates this is nothing like 2006 for three major reasons. – miami housing market

1. The housing market isn’t driven by risky mortgage loans.

Back in 2006, nearly everyone could qualify for a loan. The Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers’ Association is an indicator of the availability of mortgage money. The higher the index, the easier it is to obtain a mortgage. The MCAI more than doubled from 2004 (378) to 2006 (869). Today, the index stands at 130. As an example of the difference between today and 2006, let’s look at the volume of mortgages that originated when a buyer had less than a 620 credit score. – miami housing market 3 Charts That Show This Isn’t a Housing Bubble | MyKCMDr. Frank Nothaft, Chief Economist for CoreLogic, reiterates this point:

“There are marked differences in today’s run up in prices compared to 2005, which was a bubble fueled by risky loans and lenient underwriting. Today, loans with high-risk features are absent and mortgage underwriting is prudent.”

2. Homeowners aren’t using their homes as ATMs this time.

During the housing bubble, as prices skyrocketed, people were refinancing their homes and pulling out large sums of cash. As prices began to fall, that caused many to spiral into a negative equity situation (where their mortgage was higher than the value of the house).

Today, homeowners are letting their equity build. Tappable equity is the amount available for homeowners to access before hitting a maximum 80% combined loan-to-value ratio (thus still leaving them with at least 20% equity). In 2006, that number was $4.6 billion. Today, that number stands at over $8 billion.

3 Charts That Show This Isn’t a Housing Bubble

3 Charts That Show This Isn’t a Housing Bubble

Yet, the percentage of cash-out refinances (where the homeowner takes out at least 5% more than their original mortgage amount) is half of what it was in 2006.

3. This time, it’s simply a matter of supply and demand.

FOMO (the Fear Of Missing Out) dominated the housing market leading up to the 2006 housing bubble and drove up buyer demand. Back then, housing supply more than kept up as many homeowners put their houses on the market, as evidenced by the over seven months’ supply of existing housing inventory available for sale in 2006. Today, that number is barely two months.

Builders also overbuilt during the bubble but pulled back significantly over the next decade. Sam Khater, VP and Chief Economist, Economic & Housing Research at Freddie Macexplains that pullback is the major factor in the lack of available inventory today:

“The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.”

3 Charts That Show This Isn’t a Housing Bubble | MyKCM

3 Charts That Show This Isn’t a Housing Bubble | MyKCM

Here’s a chart that quantifies Khater’s remarks:Today, there are simply not enough homes to keep up with current demand.

Bottom Line

This market is nothing like the run-up to 2006. Bill McBride, the author of the prestigious Calculated Risk blog, predicted the last housing bubble and crash. This is what he has to say about today’s housing market:

“It’s not clear at all to me that things are going to slow down significantly in the near future. In 2005, I had a strong sense that the hot market would turn and that, when it turned, things would get very ugly. Today, I don’t have that sense at all, because all of the fundamentals are there. Demand will be high for a while because Millennials need houses. Prices will keep rising for a while because inventory is so low.”

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  2. How to manage your mortgage before interest rates rise

How to manage your mortgage before interest rates rise

How to manage your mortgage before interest rates rise

How to manage your mortgage before interest rates rise

Mortgage Strategy low rates Real Estate Miami Florida

In today’s real estate market, mortgage interest rates are near record lows. If you’ve been in your current home for several years and haven’t refinanced lately, there’s a good chance you have a mortgage with an interest rate higher than today’s average. Here are some options you should consider if you want to take advantage of today’s current low rates before they rise – Mortgage Strategy.

Sell and Move Up (or Downsize)

Many of today’s homeowners are rethinking what they need in a home and redefining what their dream home means. For some, continued remote work is bringing about the need for additional space. For others, moving to a lower cost-of-living area or downsizing may be great options. If you’re considering either of these, there may not be a better time to move. Here’s why.

What You Should Do Before Interest Rates Rise

Mortgage Strategy low rates Real Estate Miami Florida

The chart below shows average mortgage rates by decade compared to where they are today:Today’s rates are below 3%, but experts forecast rates to rise over the next few years.

If the interest rate on your current mortgage is higher than today’s average, take advantage of this opportunity by making a move and securing a lower rate. Lower rates mean you may be able to get more house for your money and still have a lower monthly mortgage payment than you might expect.

How to manage your mortgage before interest rates rise

How to manage your mortgage before interest rates rise

Waiting, however, might mean you miss out on this historic opportunity. Below is a chart showing how your monthly payment will change if you buy a home as mortgage rates increase:

Breaking It All Down:

Using the chart above, let’s look at the breakdown of a $300,000 mortgage:

  • When mortgage rates rise, so does the monthly payment you can secure.
  • Even the smallest increase in rates can make a difference in your monthly mortgage payment.
  • As interest rates rise, you’ll need to look at a lower-priced home to try and keep the same target monthly payment, meaning you may end up with less home for your money.

No matter what, whether you’re looking to make a move up or downsize to a home that better suits your needs, now is the time. Even a small change in interest rates can have a big impact on your purchasing power.

Refinance

If making a move right now still doesn’t feel right for you, consider refinancing. With the current low mortgage rates, refinancing is a great option if you’re looking to lower your monthly payments and stay in your current home.

Bottom Line

Take advantage of today’s low rates before they begin to rise. Whether you’re thinking about moving up, downsizing, or refinancing, let’s connect today to discuss which option is best for you.

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