We are all used to Miami welcoming both young professionals and families looking to make their lives better in some way. But, as you can probably tell, Miami can be a great place to invest in. And not even the recent pandemic has slowed down the Miami real estate market. In fact, it only continues to advance. But, if you’re investing, you need to be prepared. As the good old real estate mantra states, location is crucial when you're going for such a big purchase. And, putting your finger on the map of Miami and choosing the neighborhood isn't going to cut it. In order to get your money's worth, you need to be aware of the best Miami neighborhoods to invest in. Luckily, we are here to help.
Our pick of the best Miami neighborhoods to invest in
Before we start our list, it is worth noting that investing in real estate requires ample research. Before making your choice, you need to outline what type of real estate you want to invest in and how you will finance your investment.
With that in mind, we would advise you to take our list as more of a friendly suggestion than an outright recommendation for investment. If you need further help, we will happily connect you to a Miami realtor. That way, you can consult a local expert. Now, let's see what Miami has to offer when it comes to real estate.
If you plan on making your money from rents, Wynwood is an obvious recommendation for real estate investment. Compared to other Miami neighborhoods, Wynwood has comparatively low purchase costs. But, the average rent for a 1-bedroom apartment is currently at around $3200. This, as you can imagine, is nothing to scoff at. Make the right call, and you can return your investment within a couple of years. And seeing that new condos are constantly being built and new people are moving in, there is every indication that this trend will continue. The one thing we would recommend is to understand what home improvements most people expect. That way, you can make the most out of your investment.
Neighborhoods with a cultural background tend to present a decent real estate investment. Notable cultural events tend to draw in the more educated crowd. And such a crowd doesn't shy away from buying and renting in these neighborhoods, especially during their youth. If this sounds like your cup of tea regarding investment, Little Haiti is the neighborhood to check out. With its Caribbean heritage, it holds a distinct style and vibe when it comes to Miami neighborhoods. This makes it an ideal housing choice for both Caribbean ex-pats and people who enjoy the Caribbean culture.
Not to repeat ourselves, but it truly doesn't take much experience in real estate to learn that it is all about "location, location, location." Therefore, once you consider that Edgewater is near Design District, Wynwood, and Park West, it should become clear why we've featured it on our list. The great thing about it is that it is still in development. Therefore, there are plenty of investment opportunities, although they aren't cheap. If you find the right Realtor, they will advise you on the best next step depending on your needs and wants. But know that whether you consider renting or flipping your property, know that you stand to earn a lofty sum if you opt for Edgewater.
Downtown Miami holds excellent potential for investment, regardless of whether you buy an apartment or a house. As for apartments, you can easily make money from renting. More and more young professionals are moving to downtown Miami each day to enjoy the vicinity of the Miami nightlife. And young families are looking to purchase homes in the quieter residential areas. So, once you decide what works for you in terms of investing in real estate, know that Downtown Miami is an excellent place to start your search.
When it comes to up-and-coming Miami neighborhoods, Midtown Miami most certainly stands out. With great restaurants and numerous cafes and outlets, Midtown Miami holds terrific investment potential. More and more people realize how great living in Midtown can be, which is why real estate prices are constantly on the rise. Therefore, if you choose to invest in Midtown Miami, we advise that you do so as soon as possible and with your eyes wide open.
Miami Design District
Since it is one of the more luxurious Miami neighborhoods, many people seem to stay away from Design District when it comes to investing. But, for those who can afford it, investing in the Design District can be incredibly profitable. There are plenty of art galleries, modern restaurants, and high-end fashion retailers rushing to situate themselves in the Miami Design District. The district itself is constantly expanding, so we strongly advise you to at least check it out and quickly turn your investment into reliable passive income.
While on the subject of passive income, Buena Vista can also be a good idea. While it is not as expensive as the Design District, it still holds great investment potential. Since it is located close to Biscayne Bay, Little Haiti, and Downtown Miami, Buena Vista is a terrific place for rentals. According to Pro Movers Miami, more and more young professionals move to Buena Vista simply to make use of its great location. So, if you have some extra funds, investing in a home for a rental can be a solid plan.
Northeast Coconut Grove
Gentrification has done its fair share in Coconut Grove. Before, it was a known gathering place for Florida hippies. Now, it is filled with bars, ristorantes, and luxury hotels. Fortunately for you, this also made Coconut Grove a terrific place for real estate investment in Miami. Especially the Northeast part. The housing is close to local colleges and universities, so it should be pretty evident to whom you can rent your property.
The last on the list of our best Miami neighborhoods to invest in is the most sought-after neighborhood for young professionals. Namely, if you are a 20 something-year-old person that just moved to Miami, then Brickell is the place to be. All the reasons mentioned above (nightlife, location, neighbors) are in effect here. So, if you are looking to invest in order to rent out to young professionals, this place is an obvious choice.
Written by: Lisa Roberts with US Moving Experts