Brickell Real Estate Market Report 2017 - 2018
In this newsletter, we are going to analyze the sale and price trend of our favorite neighborhood, Brickell. Brickell is one of most popular neighborhood in Miami along with Downtown and Miami Beach. So far this year, the sales volume seems to be dwindling down by almost 20%. There were 7 closed sales recorded at The Brickell on The River condo from January to April this year. This number pales in comparison to last year's 15 closed sales during the same time period. Other condos has shown similar trends such as The Icon Brickell (9 closed sales this year and 15 last year).
In term of prices, there is a noticeable trend that prices have gone down as well. The Jade condo which sold for $650/sqft in 2017 was down to $580/sqft this year. The prices for other condos such as The Carbonell condo also fell slightly. However, fear not, The Plaza condo in Brickell defied this trend and their price per square foot increased as well as their number of closed sale this year.
This downward trend was likely caused by the high inventory of condos available on the market. One might argue that the market is currently saturated with four years condo supply. To add a further comment, the drop of sales is influenced by the increase of the interest rate that has been up since the beginning of this year. This means it has become expensive to finance a purchase.
Tax Advise: Avoid 30% tax on rental income next year
Are you a foreign investor who has bought a property in Florida? Are you renting out the property ? If yes, you might have 30% tax imposed on your gross rental income. This means, if you have a rental income of $24,000, you need to remit $8,000 to complete the U.S. income tax liability.
Here's the good news: you can avoid this tax by simply making an 871(d) election. An 871(d) election allows foreigners to treat their rental income to be connected to a U.S. trade and business conducts. This means you will be exempted by the 30% tax and is instead, be taxed with the same graduated income rates as a U.S. citizen which in this example would be $4,000.
To submit an application for this election, you must attach an income tax return statement with the information required by the Internal Revenue Service (IRS).
PLANTA - VEGGIES LOVER'S DELIGHT
I love new restaurants especially when they are in my hood ! Planta is a new vegetarian restaurant which just opened in the South of Fifth neighborhood. The restaurant is such a beauty and their vegetables are gown on the rooftop! It has a perfect ambiance for a late weekend brunch or for a great evening party.
Here are some of the foods that I recommend: Start off with the Coconut Ceviche and Cauliflower Tots to get your taste buds ready. Then order a huge 'Meat Lovers' Pizza for your main entree! Add Fried rice or 'Chicken' Fried Mushrooms as a side, believe me, they are to die for! Then, finish off with the light Chocolate Terrarium dessert. You will thank me when you order these foods!
NEW CONDO-HOTEL PROJECT: THE YOTELPAD
If you are looking to diversify your investment, maybe its worth taking a look at this project: The Yotelpad condo. The Yotelpad is condo-hotel project where buyers can buy a small unit (max 700sqft) and rent it out short term.
The hotel program allows investors to earn more income than the traditional annual property rental. The Yotelpad is located in Downtown Miami near popular locations such as The Bayside Market Place, The Bayfront Park and American Airlines Arena.
The Yotelpad will have three floorplans: studios ($270,000+), 1 bedrooms ($300,000+) and 2 bedrooms ($425,000+) and the project is expected to break ground this October 2018. Click here for more info
TOP 5 EVENTS IN MAY
Miami has exciting events happening this month. Here are some events that you should look out!
Rolling Loud Festival: May 11 - 13
The biggest hip-hop stars are coming to Miami Gardens for a 3 days festival. The line up includes Travis Scott, Future and many more. Price starts at $299
H.O.T Challenge Golf Tournament: May 11
Challenge your golf skills while participating in a fundraising. All proceeds goes to a scholarship fund for students with African heritage who will work with the local visitor industry
New Times Brew at The Zoo: May 12
Come enjoy a nice day out in the Zoo while seeping some cold beers at the annual Brew at the Zoo event. Sample 100 different kinds of beers from all over the world. Ticket starts at $40
Redland International Orchid Show: May 18 - 20
Are you a fan of orchids? Over 60 vendors are showcasing the most beautiful orchids in the world and this is your chance to find the most exclusive ones
Air and Sea Show and The Musical Explosion: May 26 - 27
It's the memorial day weekend and the 'Greatest show Above The Earth' will be at the beautiful shore of Miami Beach. See flying jets and powerboat racing demonstrations at this two days event.
DEAL OF THE MONTH: 900 BISCAYNE BLVD #3807
Listed at $450,000
1 Bedroom / 1.5 Baths
1 Parking spaces
Click here for more info