Depreciation of real estate in the United States can occur due to several factors. Among them, its physical deterioration over time, facilities that are becoming obsolete or a low demand in the market. Knowing the causes is important to learn how to preserve the value of properties in the long term and, at the same time, take advantage of investment opportunities at better prices.
Tips to Avoid Real Estate Depreciation in Miami
Are you looking to preserve and even increase the value of your real estate portfolio? So, keep in mind these strategies that will help you preserve all your real estate investments in Miami.
Buying a ready-to-move home
You can find offers for homes for sale in Miami and thus acquire a property with a long useful life. Although the price is higher than that of a used home, there are mechanisms such as preferential capital, which make the purchase more accessible. This consists of participating in real estate projects with the contribution of capital quotas, which translates into less risk and interesting dividends once the work is completed.
Prevent real estate depreciation with constant maintenance
When buying a used property, you should not only face a real estate due diligence. You also need to implement measures to preserve the property from the passage of time. Including:
- Check electrical and sanitary installations.
- Repair leaks and waterproof exteriors.
- Correct the dampness of the walls.
- Check the condition of the floors.
When it comes to interior decoration, you can do
home staging
to make your property more attractive for sale. The practice consists of redecorating spaces according to the latest trends to make them look more harmonious and modern.
If, on the other hand, the property is to be rented, make sure that the expenses generated are duly recorded in the
rent roll
. This is key to evaluating the profitability of the property and knowing if it is time to adjust the rental fee.
Modernize facilities
Many buildings still have facilities that were once modern, but their use has become obsolete. Therefore, if you want to prevent the depreciation of real estate, you must modernize facilities such as:
- Air conditioning and lighting system.
- Taps and sanitary fixtures.
- Kitchen installations, such as the counter or the extractor hood.
In addition, you can carry out structural improvements. Among them, adding steps to separate rooms, a beam that offers greater security or windows that increase natural lighting.
Deduct taxes
Maybe you didn’t know this, but you can reduce your housing expenses in Florida by deducting taxes on the value of the property. Thanks to the Homestead exemption, homeowners have seen their tax burden reduced.
In total, you can deduct up to $50,000 in property tax. So, use this strategy to offset the depreciation of your assets and maintain their performance.
Undoubtedly, real estate depreciation is key when deciding on your next real estate investment. Consider these factors when making strategic purchases, such as an apartment for sale in Miami, and maximize the profitability of your portfolio.
References
Management. (2023, September 27). Recommendations to avoid the devaluation of the property with a maintenance plan. https://gestion.pe/tu-dinero/inmobiliarias/recomendaciones-para-evitar-la-devaluacion-del-inmueble-con-un-plan-de-mantenimiento-inmueble-mercado-inmobiliario-noticia/#google_vignette
Urdaneta, E. (2023, June 7). Understand depreciation on real estate investment properties. Diario Las Américas. https://www.diariolasamericas.com/opinion/comprenda-la-depreciacion-propiedades-inversion-inmobiliaria-n5337298