If you have had the opportunity to house hunt in global cities like Hong Kong, Singapore, London, Zurich, Stockholm, Tokyo, Paris, Sydney you will realize the apartment cost as a measure of dollars per square foot in these cities is much higher than in Miami.
Considered a piece of paradise by most, buying a piece of luxury property at Pines Garden Apartments is a bargain relative to the above-mentioned global cities.
If we were to compare the average prices per square foot of luxury homes in other global cities relative to Miami the typical luxury property in Miami would go for around $650 per square foot.
The average rent paid for a Pines Garden Apartments is also significantly lower than an equivalent luxury apartment in these global cities. An apartment for sale in Hong Kong goes for roughly $4900 per square foot which is almost 8 times the average in Miami.
Even beachfront properties in Miami are still a bargain compared to some of these global cities where there are no beachfront properties available.
Now let us look at some of the reasons why property like Pines Garden Apartments in Miami are much less expensive than in other global cities.
Large Land Mass
The United States has a very large landmass compared to other countries. The availability of land and space to carry out construction provides developers with the area they need to carry out development. The more the development the higher the number of apartments available for sale and rent and this means that demand and supply closely match each other or sometimes even the supply exceeds the demand.
Such a system where demand and supply closely track each other eliminates any possibility of hyper-inflated housing which is what happens in most other global cities. Developers have to be conscious of the prices they charge per square foot so that they do not risk pricing themselves out of the market this applies to both houses available for sale or rental properties like Pines Garden Apartments.
Land and property tax
Although this might sound counterintuitive land and Property taxes applies pressure on landowners to develop them and put them to practically use that generates income. In some of these global cities, they have a policy of 0% land tax which leads to landowners holding onto land and creating speculation and hyper pricing of the Land without any value attached to it, this eventually leads to very expensive apartments as the developers try and recoup the money they spent buying the land.
The competitive and modern construction industry
The construction industry in Florida is huge compared to some other countries. Florida construction companies operate on very large economies of scale which they pass on as a lower cost of construction. Because of this competitive nature, the cost of construction in Miami is lower than in these other cities. So the costs of Pines Garden Apartments, when compared to these other cities, will be much lower.
Alternative investment opportunities
Broadly speaking, in the US there are more investment opportunities other than just real estate. So for the Investor who has the extra dollar to invest, we have a lot more options. This means that land has competing investment opportunities. In other global cities, real estate is considered one of the major forms of investment you, therefore, have a lot of competition to invest in real estate which leads to price increases. In some of those countries, there is little faith in investment opportunities like Stock Exchange and shares so with everyone competing for real estate it will definitely lead to overpriced housing.
There is also the case of pressure from foreign investors who are willing to pay above-market rates for property in these global cities because their investment opportunities in their own countries are not as viable as real estate in these other countries. This situation does not affect Miami as much because as we just mentioned, there are a lot of other investment opportunities in the US other than just real estate.
So having considered these factors and additional benefits like Miami being the world’s largest cruise port, it is clear that there are no tangible benefits that other cities have over Miami. The prices of property in these other cities are extremely high compared to luxury apartments of the same size in Miami. It makes more sense to invest in Miami because you get more bang for your buck.
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