If you have been considering investing in a multi-family property in South Florida, you might be wondering if this is the year to jump on some valuable real estate. You might have planned on purchasing property last year, and ended up delaying your plans because of coronavirus. Is now the time to make a move?
There are a number of reasons why you might want to consider moving forward with your multi-family purchase. Let’s go over them now.
4 Reasons to Invest in a Multi-Family Property
- A lot of people are moving into apartments. The pandemic resulted in a lot of people losing their incomes either temporarily or permanently, switching, jobs, or relocating after switching to working from home. As a result, there has been an influx of tenants into apartments in some locations. Some of these are people who simply moved from one city or state to another, while others may have downsized from a house. Regardless, many of these people will stay in their apartments going forward—and some people are still moving into apartments because of pandemic-related reasons.
- Rents have remained surprisingly steady. It is true that unemployment rates have climbed in South Florida. But that doesn’t mean you will necessarily be collecting lower rents. As this article explains, “And despite a spike in unemployment — Miami Beach-Kendall metropolitan area’s unemployment rate rose to 7 percent in December 2020 from 1.5 percent in January 2020, according to the U.S. Bureau of Labor Statistics — landlords did not see rents drop. Apartment rents for the Miami metropolitan area stayed flat year-over-year — a 0.2 percent growth from December 2019 to December 2020, according to Yardi.” So, multi-family units continued to produce steady rent income through the pandemic. That is pretty impressive, and should alleviate concerns you might have about what to expect moving forward.
- The Miami area has a history of rebounding nicely from economic distress. Following the recession, Miami did a great job of bouncing back. The resilience of this area in comparison to many others makes it an attractive spot to invest in real estate in uncertain times.
- People are still flocking to Florida to live and work. Finally, new residents are relocating to Florida in droves, and all are looking for places to live, many of them hoping to move into multi-family units. As explained here, “According to the state’s Office of Economic and Demographic Research, an estimated 329,717 new residents settled in Florida between April 2020 and April 2021.” The article adds, “And for those wondering when the migration will slow down, Florida’s popularity isn’t expected to end any time soon: it’s expected to gain an average 845 new residents a day until 2025, according to state projections.” By investing in a multi-family property now, you can position yourself to profit from that expected influx of new residents over the years ahead.
Invest in Hot Multi-Family Properties in South Florida Now
Have your eye on a valuable property in Miami or elsewhere in South Florida, and looking for the flexible, competitive financing you need to close fast? With our network of local lenders, we can connect you with a loan that is ideal for your multi-family real estate investment needs. Contact Lending Bankers Mortgage at (786) 220-1100 to get started.