In 2007, the US real estate market experienced one of the most serious financial market crashes in its history: the subprime crisis, responsible of an unprecedented fall in real estate prices. Florida was one of the most affected states. In some cities, prices have dropped by more than 50%. Since 2008, the volume of foreclosures has forced US banks to resell countless properties on their balance sheets, at discounted prices. Despite a recovery in growth since 2012, investing in Florida is still worth to benefit discounted prices, but with a much-continued rise that continues: between 2016 and 2017, average house prices in Florida increased by 9,21%.
But U.S for US is particularly interested in the rental market with an immediate return on investment, the collection of income from your real estate investment taking advantage of the famous French-American tax convention.
Miami is a hub for international trading and immigration, thanks to many ports, linking, among others, the South and the Caribbean. In this particularly business-friendly setting, Miami County is not subject to Income Tax, which has the effect of attracting many residents and multinational corporations. Florida remains, by its climate and its geographical location, a State where the migratory flow is constant. Canadians have made it their favorite vacation spot and the European community is well represented.
Nombreux sont les Français à s’y être installés. Sans compter les Vénézuéliens et les Brésiliens qui n’hésitent pas à y sécuriser leurs économies. Les plus opportunistes ont vu leur patrimoine grandir suite à des achats immobiliers dans les villes cotées, telles que : Miami, Orlando, Boca Raton, Fort Lauderdale, Palm Beach, etc.
International sales represent approximately 10% of Florida's residential market and 35% of sales in Miami. 11% of sales of properties to foreigners in the United States are made in Florida while its population represents only 6% of all Americans.
The expansion of the US economy for a seventh consecutive year, maintains a level of asset performance that strengthens the confidence of homeowners and investors. This confidence is supported by strong demographic metrics and an economy driven by new jobs creation.
The entry of "millenials" into the labor market is boosting rental demand throughout the country. This should have a positive impact on occupancy rates and rent prices in the coming years. The opportunity to get better rental rates in secondary markets is becoming more and more precise.
Foreign investors remain very important in the US, thanks in particular to a strong euro and sources of instability in South America. Add to this growing interest from China and the rest of Asia, so we have a US real estate market that is shaped to long-term investment strategies.
Given the attractive prices, the performance of a rental property investment is particularly interesting today. Investing in Florida can generate a net annual return of 5-7% (before income taxes).
With a high proportion of renter households, Florida has a particularly dynamic rental market. Homes that have lost their property are required to rebuild their "credit score" and therefore rent for a few years. This is a long-term demand, as it’s generated by very strong activity centers permanently installed (airports, universities, companies, ports, etc.).