Real estate capital refers to movable property owned by a natural or legal person. It is key when investing in property, because it allows you to calculate your wealth and project future profits.

Do you want to make a profitable investment that will ensure you an excellent capital gain in the future? Learn why and how to venture into the Miami real estate market.

How to get a return on real estate capital in Miami?

Today, La Florida offers facilities for those who wish to invest in Miami. Here are four strategies that will help you start your own real estate capital in one of the most desirable cities:

Investing in Real Estate Trusts

This is an administrative figure that allows you to delegate the management of your real estate portfolio to experts. This way, you can skip the red tape and dedicate yourself to enjoying the returns on your investment.

In addition, trust managers make decisions aimed at obtaining the best returns based on market trends.

Manage Rentals

Renting is one of the most convenient forms of real estate investment. Miami is a destination with high demand throughout the year and, especially, in the summer months, between May and September. Thus, you can rent units with a very low vacancy period and even take advantage of them a few days a year for your holidays.

Take advantage of investment opportunities

If you have enough capital and some financing mechanisms, you can take advantage of excellent opportunities such as:

  • Real estate investment funds: these are instruments with collective contributions and diversified assets. They are relatively accessible while also helping you reduce risk and maximize profits.
  • Co-ownership: this is another option to acquire a housing unit without paying the full value. In this case, you share ownership of the property with other investors.

Maximizing the Equity Value of Real Estate

Property values tend to increase over time, in parallel with the development of urban infrastructure. The increased demand in a city also stimulates the appreciation of its properties. For these reasons, your real estate capital can grow steadily.

You can even increase the capital gain of a property by making repairs and improvements. In this sense, it is a good strategy to acquire a property and modernize it.

Tips for optimising real estate investments in the city

Do you want to get the maximum possible return on your real estate capital? Keep in mind these recommendations to get the most out of your real estate investment in Miami:

  • Consider investing in black works or pre-construction projects.
  • When investing in Miami, look for upscale, high-demand neighborhoods like South Beach or Downtown.
  • Go through the process to become a tax resident in Miami; This way you will pay less taxes and you will be able to access a financed property.
  • Find out about the caps on exempt occasional gains on real estate sales. This way, you’ll know what percentage of taxes you have to pay on the sale of a property.

The real estate market in Miami offers interesting opportunities for local and foreign investors. Are you looking to build solid, well-structured capital? Consider opportunities in South Florida real estate in order to earn a consistent income over the long term.

References:

Tax Agency. (2023). Concept of income from real estate capital.

Fimax Advisors. (2022). RENTA 2022: real estate capital returns.