Real estate investment outlook for 2023

Housing in the USA has reached very high prices, but what will they be like next year? We share with you the market predictions and what is known about 2023.

Mortgage rates in the U.S. have risen so much, following the Federal Reserve's (Fed) benchmark interest rate hike, that average buyers of a property at the median price will now spend more than a quarter of their annual income on mortgage payments alone, according to estimates from the firm Capital Economics.

Prices started to rise during the pandemic, but what will they look like in 2023? Will they go down?

Market predictions.

High prices in the U.S. housing market will plunge in the coming months as cash-strapped prospective homebuyers face rising mortgage rates. The mortgage rate on 30-year fixed loans reached 7.10% according to Mortgage News Daily. The same mortgage rate hovered below 3.5% in January.

According to projections, home prices are expected to decline by approximately 5% by mid-2023. Property values were previously expected to remain unchanged during that same period.

The deterioration in affordability will exclude many potential buyers from the market. That will reduce competition for homes, and sellers will eventually find it necessary to accept a lower price for their property.

6 Reasons why property management is necessary for a successful real estate investment

How important is a property management company?

Being a tenant and managing a rental property yourself involves more work than you would expect, especially if you are trying to grow your rental property business.

Handling tenant and maintenance issues, and being physically present at your rental properties is not always likely. These are the benefits of a property manager.

The benefits of hiring a property management company are not the only reason to consider investing in a property management company instead of being a renter on your own. Here are six reasons why a property management company might be a better landlord than you.

 

Proximity

If you don't physically live near your rental properties, it's difficult to manage the day-to-day operations as a landlord. This is why a property management company that is close to your rental investments is helpful. The property manager can handle the daily routine of your property. In circumstances where there is an emergency, they can be at the property immediately. As the owner of an investment property, this gives you the peace of mind that it is being well managed and that your tenants are taken care of.

 

Rental Pricing

A successful property management company will be knowledgeable about the current rental market and understand the trends occurring in rental rates or prices. They will help determine the right rental price for your properties based on factors such as location and amenities, and comparing going rates of similar properties. The rental management company helps you avoid overcharging the rental rate, preventing you from maximizing your monthly rental income, and also prevents you from overcharging and potentially having vacancies on the market for longer periods of time. A rental management company will also be able to test when it may be a good time to increase rental rates and by how much.

 

Finding the Right Tenant

One thing that is very important to finding tenants quickly is finding the right tenant and knowing how to evaluate them. A bad tenant can not only drain profits from a rental, but can cost you a lot of money. A good rental management company will have a robust system for screening tenants. Not only will their system be good, but they will have interviewed hundreds of tenants and realized the things you could be missing.

 

Maintenance, Inspection, and Inspection Department

Good property management companies have a maintenance department ready to address day-to-day repairs and tenant-reported emergencies, and keep tenants satisfied. In addition, it will perform inspections not only at move-outs, but also during the tenancy to make sure the property is in the care of the tenants. In addition, management companies establish relationships with all types of contractors, from maintenance workers to tradesmen and suppliers. That's why having a property manager overseeing your rental properties is essential for you as an investor.

 

Customer Service

Customer service and keeping your tenants happy may seem like an easy job, but sometimes landlords don't have the customer service skills necessary to deal with tenants. This can lead to tenant-landlord relationship breakdowns and eventually vacancies in your investment property. A property management company is experienced and familiar with the customer service needed to keep tenants satisfied from providing welcome packages to new tenants, quick turnaround times for maintenance and repairs, or collecting rents online for tenant convenience. An excellent property manager will take care of your tenants' needs.

 

Rules and regulations

You, as a landlord, are probably not up to date on the rules and regulations for rental properties. A property management company is up to date and helps you comply with the law. An experienced property manager can help you with:

- Inspections

- Housing regulations

- Housing and building codes.

- Notices

- Eviction procedures

 

A property management company makes sure you always comply with federal, state, and local laws when it comes to your rental property.

Hiring a property management company to oversee your rental properties makes sense. There are many benefits of having experienced property managers covering your investments and running the day-to-day operations. With the help of a property manager, you can maximize your profitability and consider expanding as a landlord.

How Miami Became One of the Riches Cities in America

 

Miami is known for its weather, parties, and many cultural activities. While still having all those things, it also has slowly become one of the strongest purchase capitals in the American region, with a growing Hispanic population.

According to the most recent data by the U.S. Census Bureau and the Pew Hispanic Center, Hispanics are now accounting for 1 in 4 Floridians, when a decade ago it was 1 in 6. The fastest-growing county with a Hispanic population is Broward, and it’s also the largest community in Florida, representing 20.5% of the state’s total population.

 

Latino influence in purchasing

Knowing this data, it’s also essential to remember that Cuban-Americans are still the most prominent Hispanic group, with Mexicans being the fastest-growing, followed by Nicaraguans, Colombians, and Venezuelans.

Back in 2012, the purchasing power of Hispanics in the state boomed $212.8 billion, a 980% since 1990. All of this means that Hispanics account for 29% of consumer power in the state.

With a booming minority in the state, Hispanics have a strong influence in the market, raising economic standards and pushing the state into a different category of affordability and quality.

 

What happens next?

Since the pandemic began, many people have been moving to cheaper cities. Since services are more affordable than in other states, there was a surge coming into Florida. However, it didn’t immediately translate into price increases, but more companies decided to invest in growing industries in the state.

With all of these circumstances aligned, Miami has become a competitive place to start investing in and building a life. As minority groups keep growing and industries keep coming in, Miami has a platform still raising its standards and becoming one of the best places for having a work-life balance.

Miami's Real Estate Boom: What You Must Know

 

Miami is becoming a center for tech startups and investors at a fast pace

Miami has become the second most expensive city in the housing market, after Los Angeles. But this hasn’t stopped people from making the city a new reference in tech development and startups. It has been compared to Silicon Valley. 

 

The pandemic affected several industries and changed the way people worked. It wasn’t necessary to go to an office every day or be close to your workspace. When people started to notice that, most of them began to plan around this by moving to states where they could work in their industries while planning their personal lives. When most companies started to realize the benefits of remote work, they began to change the way they conceived remote work, allowing most of their employees to work from wherever they wanted. 

 

But what does this means for real estate? 

Craig Studniky, executive director of Related ISG Realty, commented that Florida had increased its population by 900 people per day over the last few years. The pandemic didn’t affect this internal migration as much as other states. Over the first four months of 2021, the housing market grew by 39.8%. 

 

It is expected that the housing market will normalize by next year, offering more options for buyers since inventory has been on the rise. However, don’t expect prices to lower; those will still be on the rise. 

 

In recent predictions, there’s a forecast of a 3.2% increase in home price by June next year or even a 12% increase by July. 

 

Millennials are looking for comfort (a better quality of life, and most of them, started to plan their families). That’s a big reason why cities like Miami are booming in real estate: since it’s beginning to become a startup and tech capital, it’s a tax-friendly area, and real estate is on the rise, it’s the perfect place to start planning their professional and personal future. 

 

Just like it happened in New York City and the Bay Area, Miami is in the zeitgeist of a tech financial boom that, on the one hand, has created opportunities for those who can afford a house and have their work here. On the other hand, it makes a breach in the quality of life among specific populations. Still, Rebecca Danta, from the angel firm Miami Angels, claims that part of the solution could be generating more job opportunities in the tech area to close that gap. 

 

Miami’s continued rise won’t stop any time soon and will stay relevant in this new normal, and real estate will be one of the markets that will see the benefits from this. 

Moving to Miami? All you need to know

 

Miami is a wonderful city, on an eternal vacation and with a wonderful climate. Plus, Miami brings together the best of worlds: Caribbean flavor and American culture. But, before moving to Miami, as in any city in the world to which you want to move, you must know certain factors: who lives there, what the lifestyle is like, the economy, etc.

 

Miami has a very colorful and happy culture, with a vibrant nightlife and beaches, and warm winters, if this is something that matters to you, this is your place. But, since not everything is fun, here is a guide to the advantages and disadvantages of living in this city.

 

What factors should I consider when moving to Miami?

When moving to Miami you must consider a number of factors:

Climate

For those who want to live in the United States, there are many advantages in this particular aspect. With 50 states, you have all the climates to choose from. Miami is a city with a mild climate and temperatures, when you compare it to others, especially in winter. However, it is a city where it rains constantly and is in the eye of the hurricane, at least between June and November.

 

Therefore, if you want to move to Miami, you should consider that you will have to prepare for this season.

 

Additionally, consider that during the summer the temperatures will be quite high and the humidity is intense.

Is Miami an expensive city to live in?

Yes. The highest costs of living in Miami are rent and food. But Florida has a benevolent tax legislation: there is no state income tax in Florida, which could save you thousands of dollars (you should pay only the federal taxes).

 

Traffic

In Miami you lose time in traffic!!! This is true! There are areas that are very congested and this makes people look to live in other areas of the city and surroundings and not waste so much time in traffic.

 

There are several factors to improve in these aspect, but we know that the corresponding authorities are working on it. Even so, it is our duty to tell you…

 

Food, food, food... many different culinary cultures in one place

In Miami you will never get bored of eating the same, since the cultural offer is not only in activities, but also in restaurants!! Whatever you want to eat, we have it!

 

There are MANY options in condos to move to Miami

When you are moving to Miami, you have to make decisions like whether to rent or buy; the area where you want to live; if you have children, the schools where they will go, etc.

Fortunately, there are options for everyone and we can help you! Check our web to know our options for you.

 

Activities and cultural offer

It is impossible to be bored in this city. If you are moving to Miami, be prepared to be amazed by the lot of things to do. For lovers of nightlife, Miami offers the most intense activity; If you prefer to taste Latin American cuisine, the city offers an impressive variety of restaurants.

 

If your interests are inclined towards art, the galleries represent artists from all over world. If you prefer contact with nature, we have famous natural parks that are less than three hours away.

 

What are you waiting for? Moving to Miami looks like a many more joys and advantages than anything else. We will be waiting for you!

Coconut Grove, a great location to live in Miami

 

Coconut Grove is one of the oldest neighborhoods in Miami, it was founded around the 1800s and is located between Brickell and the city of Coral Gables, but… besides this, what makes it special and unique?

 

It is strategically located. It is close to several key areas in the city; the financial center of Miami, as well as shopping and entertainment areas. Coconut Grove also offers families a quiet space to live, surrounded by vegetation and trees, which provide a touch of privacy and exclusivity to the houses and villas in the area.

 

Among the activities that you can enjoy in the area are:

 

Visit parks such as Peacock Park: with recreational areas, baseball fields, basketball, and tennis courts. It serves as the stage for various events during different times of the year.

 

Visit the Vizcaya Museum & Gardens, a museum that was originally built in 1914 as a European-inspired winter villa, surrounded by gardens, sculptures, and fountains. It is currently a certified historical monument and museum.

 

In Coconut Grove you can bike the Commodore Trail, a 5-mile paved route that runs along South Miami Ave., Bayshore Dr., and Douglas Rd.

 

In addition to this, it is very close to the Peacock Park marina and there is a good area of ​​restaurants, cafes, and bars for all tastes, which feed the "bohemian and chic" life of the urbanization.

 

Coconut Grove is the ideal place for a quiet life, close to everything that is important in Miami. Enter our website and visit the properties for sale in Coconut Grove https://www.miamiriches.com/forsale

Why New Yorkers keep moving to Florida.

 

Lower taxes, better weather, and the coronavirus are driving nearly a thousand people a day to come to Florida, according to the Miami 2020 report. According to the Daily Mail, and citing The New York Times, during the coronavirus pandemic hundreds, nearly thousands of Americans are reportedly moving to Florida every day as entire families leave cities in upstate New York, New Jersey, and Connecticut.

 

The reason?  Even though "everything is more expensive" in the Sunshine State, the interest rates on properties are not so high compared to the rest of the cities in the north of the country.

 

The environment propitiated by the pandemic paralyzed prices so much so that, for example, in counties such as Palm Beach, new contracts for single-family homes over $1 million experienced a 268% increase compared to the same date last year.

 

According to The Daily Mail, since COVID-19 began, the so-called "rich end of the market" expanded "in major South Florida markets," as well as in Tampa and St. Pete.

 

Experts believe that the possibility of a second wave of COVID-19 also plays a role in this movement of approximately 950 people daily. What better place than Florida, with its warm temperatures, to pass the disease?

 

The reality is that home sales in some parts of Florida have more than doubled since March 2020, in what they call an "unprecedented demand."

All that you have to know to rent or sell your property in Miami

There are many things to take into consideration if you are looking to rent or sell your property in Miami.

Many people take several factors into account before making a decision, that is why we believe you should consider the following if you want to rent or sell your property:

1.   The location: This is a fundamental factor.

The location of a property will make the difference for people who want to buy your property. If you are close to universities, transportation, shopping centers, or if you are close to the main access roads of the city, you will be able to sell or rent your property much faster.

2.    Be careful with the price. Remember that everything depends on the area where your property is located.

Do not try to set a price above the market, because if you do, it will be very difficult for you to rent or sell your property in Miami.

3.    Expenses: If you are going to rent your property, take the expenses into account.

There are many mishaps or accidents that your potential tenants may suffer. For this reason, before generating a rental contract, take unforeseen expenses or accidents into account.

4.    Remember to have all your papers in order:

Remember to have all your papers up to date, so when the time comes to sign a rental or sale contract for your property, you will not have to wait so long for the paperwork.

 

Take these factors into account and you will see that you will be successful with the sale or rental of your property.

Advantages of an elevated home.

A growing number of Miami Beach homes are being designed with higher-than-ground living spaces, as homeowners and builders try to protect against frequent flooding and rising sea levels.

Buildings or elevated structures have been repeated as a constructive typology throughout the history of architecture; popular architecture has been able to develop very interesting solutions such as the hórreos, which are small warehouses raised on columns, or constructions supported on large piles over rivers or swamps.

So, let's take a look at the main advantages of buildings raised over the ground.

1-Preventing animals from entering the house.

2-Protecting the interior from filtration and humidity.

3-Protecting the lower part of a house from contact with people, animals, or objects, which causes faster deterioration of the facade.

4 -In certain cases, helping to better isolate the interior of the house.

5-Saving, in a simple way, the irregularities of the ground without having to alter it with earthworks.

Will you buy your first house in 2021?

 

Are you planning to move or buy a home by 2021?

There are several things you need to consider.

The year 2020 has taught us the importance of home, of having terraces, open spaces available, places to share with family, or even an office to work in.

Thanks to the experience lived during this year, we know what we need to move or buy a new house.

Visual appearance

One of the most important elements when making a choice: the looks.

How the house looks inside, what amenities it has, which schools, supermarkets, avenues or other places are near this property. Many are the factors we see, before making a purchase choice.

Appearance is essential and very important at the time of choosing.

If there is a house that you liked visually, don't go into debt before taking out a mortgage.

Focus on your mortgage first, and then, once it's granted, you can make other arrangements.

Check out all the little details

1. Location: If you have bought a property that is not located in one of the best areas, you may regret this decision over time.

2. Structure and finishes of the house: It is very important to carefully check the structure, walls, rooms, kitchen, bathrooms and other elements of the house, because if you get many imperfections, you may have more trouble fixing the house you want to buy than looking for another option.

And finally, do not forget the importance of knowing a little more about the location of the house and the neighbors who will be near you, this is an essential aspect for many people when buying a property.