How much does it cost to live in Miami?
Arriving in a country and starting a new life is not easy but it is possible if you do it by advising yourself well and doing it with planning.
The issues to consider are:
- Housing: buy or rent?
- Income: employment, business other options
- Taxation
- Other topics
Housing: buy or rent?
To rent you can get from $ 1,400 dollars and buy from $ 200,000 dollars.
Before you head out looking for housing, a first question you should ask is: should you own a home right now? And the second: Or should I continue to lease?
Buying your first home is very rewarding, but financing it can be overwhelming. It’s true, buying a home has its advantages. The government rewards homeownership with favorable tax treatments. It allows you to accumulate a capital that stays with you. And if you’re lucky, the value can be increased (but don’t take it for granted).
And perhaps best of all is the sense of power that comes with ownership. You can paint the walls any color you please—or even demolish them entirely—without having to ask permission.
However, buying a home is a huge financial commitment that cannot be undertaken on impulse. You may be interested in a revealing post by personal finance author Ramit Sethi, who chronicles the story of a friend who had planned very little when she was about to buy a $1 million home in San Francisco. I agree with this brief line he writes in his article: “Research when a colossal purchase is made = good idea”.
Emotions aside, if you are not financially prepared, you may want to continue leasing until you are in a stronger position.
The costs of owning often surprise former tenants. These include down payment and opportunity costs — or anything else you might be doing with that money, such as paying off high-interest debt on credit card balances or personal loans.
You should also factor in a number of recurring costs: the mortgage, annual property taxes, insurance, standard maintenance, home improvements, and payments to the condominium or neighborhood association.
Then there are the emergency reserves you must keep for events that insurance doesn’t cover: a refrigerator breakdown, for example.
To aid you in your analysis, this handy calculation app provides you with a rough figure for the upfront and recurring costs of owning a home, on the one hand, and being a renter, on the other.
Some data you need for the calculation are:
▪ Its borrowing capacity. Being a foreigner you can get a mortgage loan that covers up to 70% of the value of the property. You should also keep in mind that you have to have money for insurance, taxes and property registration fees.
*The value of the annual taxes correspond to 2% of the value of the property. The value of the insurance corresponds to 1% of the property. These values are paid every year.
▪ The mortgage rate you can get. Here’s a useful starting point for assessing bank rates in your region (keeping in mind that it’s a starting point, as rates can change quickly).
To get an idea of the rates that are surely lower than those of Colombia, Venezuela, Ecuador, Peru and other countries of the meeting see this link: https://espanol.usbank.com/home-loans/mortgage/mortgage-rates.aspx
If you’ve been doing the math and concluded that buying is financially better than renting, the Home and Mortgage Finance Agency offers this helpful “Guide for First-Time Homebuyers.” This step-by-step guide begins by determining what you can access, ranging from making an offer to closing the purchase of your new home. Some sections of financing information are region-specific, but most are applicable no matter where you live.
Last but not least, when it comes to reading general information, doing calculations, and reflecting on these topics, I’m a fan of Mortgage Professor, and its list for first-time home buyers.
Income: employment, business other options
1. Employment
If you are one of those who have ever crossed your mind the idea of working in Miami, that American city located southeast of Florida, a tourist destination of sun and beach par excellence, a tropical paradise that everyone should know. If you are already thinking of traveling to Miami in search of employment, take a look at our article that will be of great help when planning your trip and job search in Miami.
Miami is located in southeast Florida, United States. Known for being one of the most famous cities in the USA and considered a city of importance in the sector of finance, commerce, media, entertainment, arts and international trade. The city is home to numerous company headquarters, banks and television studios. It is also an international center of popular entertainment in television, music, fashion, film and performing arts.
The port of Miami is considered one of the ports that hosts the largest volume of cruise ships in the world and is also home to several cruise line companies. In addition, the city has the highest concentration of international banks in the entire United States.
In 2008, the city was awarded the title “America’s Cleanest City“ by Forbes magazine for its year of working for air quality, large green spaces, its clean drinking water and streets, and various recycling programs. In that same year, Miami ranked as the third richest American city and the twenty-second in the world, according to a study by UBS AG. “Wikipedia”.
It is characterized by having a warm climate during the twelve months of the year, with an average temperature of approximately 24 degrees.
Although its long white sand beaches combined with its crystal blue water are the main attraction of Miami, it also has many natural and urban attractions that will catch us in this city.
Some technical data:
- Language: English (official language) and Spanish
- Coin: US Dollar
- Time zone: UTC-5 and in summer UTC-4
- Activities: finance, commerce, media, entertainment, arts and international trade.
When we talk about the salary in Miami, as in all countries of the world, we will earn depending on the sector where we are going to work. The minimum wage in Miami at the moment is about $ 8.05 dollars per hour approximately (it is convenient to look at the exact moment of departure).
Where We Can Look for Employment to Work in Miami
Miami offers many employment opportunities in different sectors. The most demanded are finance, tourism, health, education, technologies… And if we face it and are good, maybe we can open up in the world of journalism or television.
Through the internet you can find a large number of job offers to work in this city, you just have to keep in mind, that they will not call you to work as a waiter being in Spain or another country outside Miami.
There are different Internet sites specialized in job search in Miami. In this article we will name some of the best known sites. Likewise, you always have to be careful with the jobs offered and do not accept any work that asks you for money before you start working (and they are not employment agencies).
Some of the places where we can look for employment are:
- Monster.com. On this site you can search for work by your area and by the desired position. It also offers different tools to write your CV, tips for your interview and the most useful thing that this site has is that it also gives you an approximate salary in the position sought.
- Careerbuilder.com. It offers the possibility to find work online and insert your resume. The site navigation is easy to use and also offers resources to optimize the job search.
- Craigslist.org. It is a site where you can find offers on a board. It is a place where you can look for work effectively also, if you want you can enter your CV so that people looking for employees can see your application.
- Usajobs.gov. It offers numerous jobs in government, but not exclusively. Also here you can find information about salaries.
- Employflorida.com. It is a specific place to find work in Florida.
- SimplyHired.com. Search for jobs on thousands of sites including web, classifieds or company sites.
- Latpro.com. Resource for Spanish and Portuguese speakers. Job listings, career advice, and the option to receive an available position via email.
- Dice.com. Large database of ICT jobs
Most of these places are in English as it is the official language of the country, although nevertheless, a little more than half of Miami’s population speaks Spanish.
Searching through employment websites is one of the first steps taken when looking for a job in Miami to see what trades are the most demanded in this city and if we have any possibility, but we must always keep in mind that to work in America needs a Work visa or job offer to process it.
Before embarking on any trip, it is advisable to visit the U.S. embassy in your resident country and find out how the procedures are to work in the country of destination. You can visit it physically or through its web pages.
Here are some of the embassies: (If your country does not appear in the link you just have to put in the search engine “embassy United States -your country-)
Some employment agencies to work in Miami
Another option to work in Miami, as in most countries, may be to go to one of the employment agencies that are specialized in this City, these are some, but there are many more:
- Adecco – It has offices all over the world.
- Daystar
- Vintex
And as we always say, if you are in the place, do not forget to browse the newspaper, where you will find a large number of job offers that appear every day in the different newscasts.
Some of Miami’s most famous newspapers are;
- El Nuevo Herald de Miami – Largest newspaper in Miami, with a long section of classifieds in the Sunday edition and also online.
- New Times – Free weekly newspaper with a list of office jobs
We hope that this article will serve as a guide to find the desired job in Miami.
2. Own business or franchise
There are options for all tastes. Read and choose yours.
a) Own business or enterprise
If you are going to create your own business and you are already clear that it can work, it is important that you consider the following:
Personal liability protection:
- Companies offer the best protection against corporate liability for business owners, or shareholders. This means that there are provisions in the law such that your personal assets are not in danger to meet the obligations of companies, specifically creditors. Legally, companies are separate from their owners.
Credibility:
- When a company is incorporated, it gains credibility instantly. When you operate your business as a corporation this shows that the business is viable, which is more attractive to creditors and investors. Its clients also recognize the word “Inc” in the name of their corporate identity as a factor that demonstrates credibility.
| Steps offered by companies that provide business creation advice | |
| Presentation of the Articles of Incorporation. *To form a new business in Florida or Delaware, whether a corporation or an LLC, it is necessary to file the articles of organization or articles of incorporation with the State. The articles of organization/incorporation and the corresponding requirements are different for each State | |
| Document Review | |
| Preliminary verification of the corporate name | |
| Phone Support | |
| Certified Copy of Your Articles of Incorporation | |
| Fast document submission |
Other Required Steps:
| 1 Year Registered Agent Service | $99 |
| Business Tax Identification Number (EIN): | $185 |
Additional Services:
| Virtual Office in Miami, FL | $95 per month |
| Corporate Book of Company Shares | $180 |
(b) Franchise
If you have made the decision to be your own boss by acquiring a franchise, it is time to start the pre-research stage to determine which individual franchise best suits your desires. Our qualified consultants will accompany you throughout the process of choosing and selecting the ideal franchise. You can find many options with a low investment $ 120,000 dollars and up, it is not necessary to have millions of dollars to buy a franchise of a well-known brand.
These are the main categories:
- Accounting/ Tax Services
- Advertising/ Direct Marketing
- Assisted Living
- Automotive Products and Services
- Transportation
- Business Management/ Consulting
- Business Services
- Child Development, Education, Tutoring
- Clothing & Shoes
- Construction: Materials, Services & Remodeling
- Employment Services
- Environmental Services
- Equipment Leasing & Financing
- Financial Services
- Food: Baked Goods/Donuts/Pastries
- Food: Coffee
- Food: Ice Cream/Yogurt
- Food: Pizza Franchises
- Golf Equipment, Products & Services
- Hair Salons & Services
- Handyman Services
- Health Aids & Services
- Home Appliances: Sales, Rental & Rep.
- Janitorial Services
- Jewelry
- Laundry & Dry Cleaning
- Lawn, Garden & Agricultural
- Mobile
- Pet Services
- Printing/ Photocopying Services
- Recreation: Exercise/ Sports / Products
- Security Systems
- Senior Care
- Tanning Centers
- Telecommunication Services
- Travel Agents
You can consult the following search engine for greater effectiveness in your search: https://pfsrealty.com/blog/franchise-search/
Costs of the 10 most famous franchises in the United States
Entrepreneur Magazine Reference
Subway
- Total investment: $84,300 – $258,300
- Franchise fee: $15,000
- Ongoing royalty fee: 8%
- Term of agreement: 20 years, renewable
Dunkin’ Donuts
- Total investment: $358,200 – $1,980,300
- Franchise fee: $40,000 – $80,000
- Ongoing royalty fee: 5.9%
- Term of agreement: Term of agreement not renewable
Pizza Hut Inc.
- Total investment: $302,000 – $2,149,000
- Franchise fee: $25,000
- Ongoing royalty fee: 6%
- Term of agreement: Term of agreement not renewable
McDonald’s
- Total investment: $1,057,200 – $1,885,000
- Franchise fee: $45,000
- Term of agreement: 20 years, renewable
Sonic Drive In Restaurants
- Total investment: $1,200,000 – $3,200,000
- Franchise fee: $45,000
- Ongoing royalty fee: 2-5%
- Term of agreement: 20 years, renewable
KFC Corp.
- Total investment: $1,309,900 – $2,471,000
- Franchise fee: $45,000
- Ongoing royalty fee: 5%
- Term of agreement: 20 years, renewable
Domino’s Pizza LLC
- Total investment: $119,950 – $461,700
- Franchise fee: $25,000
- Ongoing royalty fee: 5.5%
- Term of agreement: 10 years, renewable
Arby’s
- Total investment: $365,000 – $2,404,500
- Franchise fee: $37,500
- Ongoing royalty fee: 4%
- Term of agreement: 20 years, renewable
Baskin-Robbins USA Co.
- Total investment: $46,450 – $401,000
- Franchise fee: $10,000 – $25,000
- Ongoing royalty fee: 5.9%
- Term of agreement: Term of agreement not renewable
Taco Bell Corp.
- Total investment: $1,324,300 – $2,465,500
- Franchise fee: $45,000
- Ongoing royalty fee: 5.5%
- Term of agreement: 20 years, not renewable
And all this without counting the requirement that you must have available more than $ 50,000 in available money among other things. The investment risk I think is clear right? And not everyone is given this type of loan and almost no one has this money available in their bank account to open a franchise of this type.
3. Taxes
When we talk about taxes in the United States , we must distinguish the different administrative levels. First are federal taxes that are the same across the country. Then, each state sets its own taxes. And finally, counties and cities also charge certain taxes.
For example, the sales tax (the equivalent of the VAT used in several Latin American countries) is set by the State of Florida at a minimum of 6% that goes to the coffers of the State itself, but each county can establish an additional percentage. So, we have that the sales tax in Miami-Dade is 7% because the county adds 1%. While neighboring Broward County has added nothing and the sales tax remains at 6%.
But as entrepreneurs what interests us most is the company income tax (equivalent to corporate tax in Spain) and the individual income tax (equivalent to personal income tax).
With an LLC (which would be like a Spanish SL ) the income tax in Florida is… 0%. Yes, yes, it’s not a mistake: zero patatero. That is, limited companies do not pay corporate tax. There is no federal tranche and Florida does not impose any state taxes, unlike almost all states. At the end of the year the profits are distributed among the partners and it is they who are taxed on the profits obtained.
And how much do individuals tax on their earnings? Depends on. The individual income tax is progressive as the level of income increases. The income tax also has a federal part and a state part. But in the case of Florida the State does not charge any income tax, so only the mandatory federal tranche is paid for all citizens that ranges between 10% and 35%.
A curiosity is the very high tax on donations and inheritances that is 35%, but in the Clinton era it reached 55%, on the appraised value of the property. The philosophy underlying low taxes on profits but high taxes on inheritances and gifts is that United States It does not penalize the creation of wealth, because they are aware that this is in the interest of all, but it does penalize wealth not earned with one’s own effort. The message is clear: here you can be rich, but not because you are “son of” but because you earn it yourself.
Labour costs are also very low, less than 8% of wages (compared to 37% in Spain). And the dismissal is completely free, and the workers have no problem with it because it is part of the philosophy of life of this country that has made it a world power. Of course, salaries are somewhat higher than in Spain and, in some sectors, much higher.
Finally, there are no cumbersome accounting obligations. You do not work with a PGC as in Spain. The only requirement is that one keeps at least one control of income and expenses. There are also no formal requirements for invoices. So if you buy a table for your office you only need the ticket to justify that expense and deduct it.
There are many more aspects, but they would not fit in a single post. In short, all are advantages for any entrepreneur who decides to locate in Florida. The only difficulty is getting the visa, but it is only difficult, not impossible. So why not give it a try?
Finally it is important that you manage to make your budget either single or married, as your case may be, for this it is important to take into account:
– The prices of basic services such as electricity, water, telephone vary considerably depending on the type of housing and the contract you have with the owner. Many times they rent the apartments with all inclusive and others the tenant must take care of the services. The basic maintenance of a telephone line ranges around $ 45 per month to which we must add the expenses of the long distance company and other additional services. Expenses on services such as electricity, gas or telephone depend on the amount consumed monthly. An average family living in a rented two-bedroom apartment can spend $50 to $120 a month on electricity, a personal home can go up to $170 or more a month, while single people sharing the home can spend $35 to $50 a month on electricity.
– Used cars (depend on model, year and number of miles): from 1995 onwards it can cost you between $2,000 and $5,000. Gas is charged per gallon and its average cost is $1.60. Each gallon equals 3.5 liters of fuel. Car insurance varies by model and can cost from $40 per month to about $200. The ticket or bus ticket costs $ 1.25 per trip and you can take a transfer that allows you to take two transports with an added $ 0.25.
– Health: insurance varies according to the policy, age and number of people insured. A family can pay monthly in health insurance between $ 150 and $ 400, an individual under 35 can pay between $ 55 and $ 75 depending on whether he is male or female. Children who are insured without parents can pay in traditional insurance between $75 to $110 per month (please check the articles in the Health section with medical and dental insurance prices). There are also community clinics and other facilities such as Kiwanis Clinics that offer consultations for $20 or other Miami-Dade County Health Department clinics that charge about $15 to $20 per person per consultation.
Education: Miami-Dade County public schools offer free education to all children and adolescents without distinction. For more information you can call the county phone 305-883-5651 where they will indicate the nearest school for your children. On costs of private schools, university studies and availability of scholarships please consult the Education section.
– Food: a family of four people, two adults and two children spends approximately between $ 90 and $ 150 per week in the supermarket. It depends on the brands and number of products you buy. Using discount coupons and supermarket brands helps save a monthly percentage. Remember to buy seasonal fruits and vegetables and avoid packaged products that are more expensive. Loose fruit will be more economical. Single people or couples without children can spend between $50 to $75 per week. All of these costs are based on existing 2001 prices and may vary depending on how each individual or household manages their income.
– Clothes and shoes: for the purchase of clothes and shoes you have to be attentive to the seasonal sales. A store like Old Navy for example, in times of sales (end of season such as August or March), can sell pants, dresses, shirts and t-shirts at $ 1.99 each. It is worth visiting the so-called “clothing outlets” such as the Mall on 163rd Street in North Miami Beach (there is the GAP outlet with clothes at 50 percent less than the regular price), or the large shopping center of Sawgrass Mills, since they have significant discounts on clothes.