Kijner & Sons International RealtyKijner & Sons International RealtyPresentsPresents

The Miami The Miami Real Estate Market ReportReal Estate Market Report

An Outlook for 2013An Outlook for 2013

By By Laura Kijner & Marc-Henri J. KijnerLaura Kijner & Marc-Henri J. Kijner

www.kijner.com

WHO WE AREWHO WE ARE

WHY INVESTING IN FLORIDA?WHY INVESTING IN FLORIDA?

MIAMI HIGHLIGHTSMIAMI HIGHLIGHTS

Source: Google Maps

Source: Google Maps

Miami is a great investment destination

1.It is a secure market to shield assets and snatch trophy houses or condos in key locations where one can hope for strong capital gain when the market picks up. However, we advise you to be careful with high COA fees and strict enforcement of HOA rules that can limit your management style

1.You can find numerous income producing properties:

Single home properties with single or multi-units: diversifying the risk geographically with several units scattered around the city

Self-standing structure: you own a “building” with multiple units rented to a large pool of tenants, geographically located in one area

Self-standing structures are great for domestic users (US residents vs. tourists) who will rent your property for a continuous time period

Management fees are much lower here but one has to be careful with inspection and ensure that properties are rent ready (ready to move-in = fully furnished & equipped)

Observed monthly yield in May 2013 was as high as 15% and capital gain in certain areas of Miami had more than doubled from last year The main advantage of these multi-income units is the possibility of condo conversion that can be engineered if you intend to renovate these units for future use when the market picks up and tenants want to become landlords with more accessible loans (when they are no longer restricted with their previous loan default that has impaired them in purchasing a new home)

Regardless of your preference, Miami offers a vast choice of quality products with very strong rental income – in the last quarter, the rental market has increased at an 8% vs. 3% rate in Bangkok, a city that mostly relies on wealthy expatriates to fill in the myriad of 1 and 2 bedroom apt. commonly seen here

Fiscal advantages can also help increase your overall ROI – the US gov’t enables you to depreciate your property over 39 years for commercial and over 27.5 years for residential. What determines the nature of your property is its use, the number of units (5 or above) and the commercial value above $1 million. Although we have clients who own several small residential units which may be qualified as duplex, triplex or multiplex but still qualify as residential property.

Lastly and most importantly, depending on your management style, you can report your expenses to create fiscal losses leading to a deficit. This deficit is reportable overseas in your home country and can create a tax break. The disadvantage is that if you count on building equity and use a leverage mechanism, you will have mostly no ability to borrow money for a US structure that is not making profit. You cannot have your cake and eat it!

Profile of International Buyers Profile of International Buyers

In Florida (2012 Data)In Florida (2012 Data)

Source: http://www.floridarealtors.org/Research/upload/Profile-of-International-Home-Buyers-in-Florida-2012-August-24-2012.pdf

Type of Property Purchased by International Buyers

Source: http://www.floridarealtors.org/Research/upload/Profile-of-International-Home-Buyers-in-Florida-2012-August-24-2012.pdf

Source: http://www.floridarealtors.org/Research/upload/Profile-of-International-Home-Buyers-in-Florida-2012-August-24-2012.pdf

Source: http://www.floridarealtors.org/Research/upload/Profile-of-International-Home-Buyers-in-Florida-2012-August-24-2012.pdf

Source: http://www.floridarealtors.org/Research/upload/Profile-of-International-Home-Buyers-in-Florida-2012-August-24-2012.pdf

Source: http://www.floridarealtors.org/Research/upload/Profile-of-International-Home-Buyers-in-Florida-2012-August-24-2012.pdf

Source: http://www.floridarealtors.org/Research/u

pload/Profile-of-International-Home-Buyers-in-Florida-2012-August-24-

2012.pdf

Source: http://www.floridarealtors.org/Research/u

pload/Profile-of-International-Home-Buyers-in-Florida-2012-August-24-

2012.pdf

THANK YOU! THANK YOU!

Q&A TIMEQ&A TIME