We even have certain areas where foreign investors look to purchase residential property. In South Florida, for example, Doral and Weston are two preferred areas for Venezuelans. Known locally as Little Buenos Aires, Argentines love the mid-Miami Beach area.  In the past few years, Sunny Isles Beach in North Miami is fast becoming a Russian enclave for vacation and second homes. Meanwhile, European clients prefer the many waterfront areas of Miami Beach, including the South Beach, Venetian Islands, Normand Isle, Treasure Island, Sunset Islands and Harbor Island.

So while our traditional second home American buyers out of Chicago, Washington D.C., Boston and New York have taken a back seat, international buyers have been flocking to our market to buy distressed real estate.  This year, the range of our international clientele has been extremely diverse and from all corners of the globe, including Turkey, Switzerland, Germany, France, Argentina, Bahamas, Bermuda, Canada, Israel, South Africa, Angola, India, Italy, Brazil, Ecuador, Guatemala, Spain and England.

So what has prompted this surge of international buyers in Miami?  The following driving factors are what we most commonly hear from our international clients buying in our market  -

1. Miami remains an alluring international destination. It is the American Riviera, our own little Sardinia, St. Tropez, Cyprus or Capri.
2. Miami is a cultural Mecca, a tropical paradise where the many cultures of the Americas live, work and play.
3. The cities of Miami and Miami Beach have invested hundreds of millions of dollars to develop the arts, history and culture of our area.
4. Miami is an international hub and easily accessible from most continents. We are a major international airport, sea port for cargo and trade, tourist hub, and regional business center for Central and Latin America.
5. A foreign owner enjoys the same fundamental rights to ownership* as that of a U.S. resident or citizen.
6. Although our country is suffering from a major recession, Miami is a safe place to enjoy, relax and revitalize oneself.
7. The Miami lifestyle is very unique and different to other major cities. This is a city that is always alive and it shows in our people, places, colors, festivals, and experiences.
8. While Miami has one of the highest rates of foreclosures in the country, the value that Miami offers today surpasses that of ten or even twenty years ago.

One of the tools still available to most foreign investors today, is the ability to obtain financing for a second home. Fair enough, relative to three or four years ago when most banks offered generous terms to foreign nationals, it is more difficult to obtain mortgage financing today.

However, one of the common misperceptions of our clients is that the difficulty lies in the program either not being available, or that the rates and loan-to-values are unattractive.  This is mostly an incorrect assumption as today interest rates are far more appealing AND foreign investors may still borrow up to 70% loan-to-value, or 70% of appraised value, whichever is less.

The real difficulty lies in getting approved to purchase a condominium in a project that does not meet today’s guidelines. The personal or borrower requirements, however, for proof of employment, six months reserves, sixty (60) day sourcing of the down payment in a local bank account, and letters of credit, are practically the same.

For further information on any of our properties, or Miami real estate, please call our office at    (305) 673-5300    or email us at info@miamiangelproperties.com.

 * Note that time spent in the United States and immigration status will determine tax liability. Foreign investors should consider title options carefully. There are a several legal issues and tax consequences for foreign investors from purchase to sale of the property – the advice of a qualified accountant, finance professional and attorney should be sought.

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