In Miami, it is easier and more profitable to lease for the long term. Condominiums or housing developments are much more stringent when it comes to short-term leases (Airbnb, booking.com, tripping). The main reason is that residents do not like to have a new neighbor every 3-4 days (understandable). There are rules from certain administrations where they allow renting 3-4 times a year, but in general they are stricter.

There are also projects that are created from the beginning thinking about short term renting, but they are few, it is important to find out before finishing the purchase what are the general rules of administration or “Home owner association”.

Before investing in Miami, we recommend you to get good advice about the environment, analyze information about rental periods of properties in the neighborhood, average prices of similar properties that are for rent or purchase, projection of the city where the asset is located and a lot of information that your advisor has to provide.

Orlando is different, it is one of the most visited cities in the world, thanks to its amusement parks like Disney and Universal, there is a lot of short term tourism, with a lot of rotation. There is also a great offer of hotels and short-term rental properties.

Our recommendation in Orlando, if the objective is profitability, would be to rent but in the long term, try to avoid as much as possible the market of short term rentals, unless you want to use the property and do not care much about the return of your investment.

Our recommendation in general is to select the asset with tweezers at the time of investing, since many times it is cheaper to be a tenant than an owner. This can happen in cities where the supply of condominiums and hotels for short term rentals is higher, which generates a price battle that can affect the profitability of the assets at the time of renting them, problems that do not happen as much when one chooses stability and attractive areas for residents and long term rentals.

• Real estate provides better returns than the stock market without as much volatility.

Historically, the risk of loss is minimized by the length of time the property is held.

When the market improves, so does the value of your home, and as a result, you build wealth. Risk never changes in the stock market and there are numerous factors beyond your control that can negatively impact your investment. Real estate gives you more control over your investment because your property is a tangible asset that you can leverage to capitalize on numerous sources of income, while enjoying capital appreciation.

• Real estate has a high tangible asset value.

There will always be value in the land (land), and in the value of your home (construction). Other investments may leave you with little or no tangible asset value, such as a stock that may drop to zero or a new car that declines in value over time. Homeowners insurance will protect your real estate investment, so be sure to get the best policy available so your asset is protected in the worst case scenario.

• The value of real estate will always increase over time.

History continues to show that the longer your property is maintained, the more money you will make. The real estate market has always recovered from the bubbles of the past that caused home appreciation to slide and for those who held on to their investments during those uncertain times, prices have returned to normal and appreciation is back on track. Now property investors in the higher yielding markets are enjoying a windfall profit. In fact, last year, every state in the nation had a positive appreciation and some of my clients in the Los Angeles market have earned millions of dollars in less than a year from the change.

• The value of real estate will always increase over time.

A real estate investment can also diversify your portfolio. If you’ve ever talked to a financial planner about investing, then you’re well aware of the importance of diversification. When you diversify your portfolio, you spread the risk. Real estate will always serve as a safe tangible asset to mitigate risk in your portfolio. Many have accumulated wealth by investing only in real estate.

• Last but not least, investing in real estate comes with numerous tax benefits.

You can get tax deductions on mortgage interest, cash flow from investment properties, operating expenses and costs, property taxes, insurance and depreciation (even if the property gains value), and other benefits. The end of the year is a very busy time for real estate because people want to take advantage of the many tax benefits before the year is out!

An investment in real estate is not only a safe financial investment, it is also an investment that can provide years of fun, happiness and priceless memories that will last a lifetime.

Translated from the original text by

Guest Writer at Entrepeneur.com

James Harris

Co-Founder, Bond Street Partners

It is in times of crisis that opportunities are created and in this time of the Coronovirus it will not be the exception. As we have been analyzing it with our different partners and the University of Florida (FIU), we think that this crisis will be different from the previous ones referring to the real estate market in Miami/Florida and more if we compare it with the 2008/2009 crisis.

Miami is one of the 10 most attractive cities for investment worldwide based on the annual wealth report ¨Wealth Report¨, because of its stability and socio-economic development.

nvesting in Miami is a privilege that only foreigners with the right information can do well. Most foreigners think it is not in their power, but that is not true. I invite you to invest in Miami, recognized as the “alpha city”, thanks to its level of business activity, human capital and cultural activity. “World City Study Group.”