The real estate market is a fascinating subject that I could talk about for hours!
For the purpose of this post, I’ve boiled it down to 3 things that most people may not know about the current Miami real estate market.
1 – Miami has a homestead exemption. The Homestead Exemption is easily explained but not limited to the following: The Exemption gives homeowners the security that any creditors or judgements against them are unable to be levied against their “homestead exempt” house, assessed value can not increase great than 3% per year, and lastly there is a portability option in the event you relocate to a new property.
Applying for a homestead exemption is greatly beneficial to homeowners from a multitude of angles, the main reasons in my opinion being the ones above.
This exemption is unique to Florida and if you have further questions, give me a call!
2 – Brickell is made up of 90% Condominiums vs. Apartment Buildings – The metropolitan area of Miami-Dade county can be defined as Brickell. Brickell is under 1.5 square miles and is known as a financial district.
Much of the Brickell residential options were built as condominiums as compared to New York City which is a majority of landlord owned buildings. Condominiums are individually owned and owners share a “common space” such as the gym, hallways, etc. When renting in Brickell you will most likely be renting from a condominium building, meaning you will be dealing with a landlord and not the building.
There are many advantages to renting a condominium vs. an apartment, the most significant being that your rental unit can be upgraded by the individual owner and feature certain things other units might not have. Rental Apartments are built by a development company and besides possibly different fixtures and coloring of interior materials, all the apartments within that building are the same. Since Brickell is mostly condominiums, your chances of renting a condominium are much higher.
As Miami, more specifically Brickell, is experiencing a tremendous boom in growth, many out of state and in state developers are building apartment buildings in Brickell. 10 yeas ago, there were only a handful of these apartment buildings, whereas today I can count almost 20.
Lastly, a major difference is the up front cost of moving into these two different types of residences. Condominiums often require first, last, security, and sometimes a second security. Whereas rental buildings usually require first months rent, a security deposit that is typically less than one months rent, and you are off to the races. The main question is, does that upfront cost matter to you more or would you rather have a more unique space?