Over the next ten years, it's estimated that around 300,000 will move to the North Bay Village area.
People from all over are flocking to Florida, which is great news for you as an investor. The Miami population increased greatly in 2020, and people were purchasing apartments left and right.
Don't worry; you didn't miss out on an opportunity. The Miami area is still great if you're considering buying apartments.
In this article, we're going to tell you seven benefits of purchasing an investment property in North Bay Village. Read on so you don't miss out on growing your portfolio.
1. Steady Flow of Income
Owning an apartment and renting it out allows you to increase your monthly profits. Once you find a good tenant and they move in you'll start collecting money immediately.
You can use that money to pay off the loan if you took one out. If everything is done correctly after you pay off your monthly mortgage payment, you'll have money left over to reinvest in other properties or to pay off your other bills.
It is important as an apartment owner that you find reputable tenants who are going to pay on time. Otherwise, that monthly income will be delayed.
2. Tax Advantages
There are several tax benefits that come when you're buying property to rent or use for investment. You can deduct a number of different items from your taxes. If you spend money on marketing your apartment in North Bay Village, you can get a tax deduction.
The same goes for property insurance, maintenance fees, property management fees, and more. If in the future, you decide to sell your apartment and you make a profit, the money won't be taxed as income but as capital gains. This is good news for you since taxes on income are typically higher than taxes on capital gains.
3. Mass Buyer Appeal
Renting out a property isn't always the easiest. Before you purchase, you must think about who your ideal tenant is and if the property will appeal to them. One of the benefits of buying apartments in Miami is that they attract many people.
There are so many different apartment options you'll be able to find one that appeals to a wide variety of people. This will make it easy to find renters.
You can market your apartment to students, growing families, young professionals, people who travel for work, and even investors. Purchasing a house instead of an apartment will limit you when it comes to potential tenants.
4. Less Risk
There is some amount of risk with every investment. However, investing in an apartment is a little less risky. The more units or apartments you own, the more stable and better off you'll be.
If a tenant unexpectedly moves out, you don't have to stress right away about filling it because the income from the other units will cover the vacant unit. Once you own your apartments, consider staggering move-in and move-out dates.
This will reduce the risk of losing all your income at once. If you have five full units and none of them decide to renew and they move out the same day, you won't have any income until you find new renters, which can take some time. If you stagger the dates, you give yourself some time to find renters before the others move out, so you'll have some money coming in to cover all your bills.
Owning apartments in the same building or owning the entire apartment building allows you to stay organized a little easier too. If you have multiple single-family homes all over the country, you may have trouble keeping up with your tenants and property managers.
5. Protection From Inflation
Inflation can be a hard battle as it affects everything. As an international investor, you can use it to your advantage when you need to. The majority of residential leases are for one year.
As inflation starts to rise, you can evaluate and raise the rent at the end of your tenants less. This is more beneficial than a commercial building because those leases are typically 3 to 4 years, and you can't adjust the rate once the contract is signed.
Inflation also increases housing pricing, making it difficult for people to purchase property, especially first-time home buyers. This means more people will be looking for apartments to rent and will lower your vacancy rates.
6. More Control
When you're investing hundreds of thousands of dollars, you want to have control over it. While the housing market can be unpredictable, owning an investment property is one of the safest investments you can make.
You will be able to choose precisely which apartment you want to buy and where you want it to be located. You will also have complete control over who lives on your property. You can be able to pick how long you want to rent it out for and when you want to sell it, if ever.
7. Long-Term Security
The great thing about investment properties is they appreciate in value. Even if the market drops, you can hold onto your property and sell it for a profit in the future. Even in a market dip, you can be making money off the property by renting it.
Buying Apartments In North Bay Village
When you're buying apartments in Miami, take your time. There are so many options, and it's important that you choose the one that is right for you and your goals.
Investing in property is a major decision, but it's one you won't regret. If you're ready to get started expanding your real estate portfolio, contact us here. We can answer any questions you may have.