Over time, the value of a property will go up and down.
Over a long enough period of time, home values generally go up.
But, of course, there are no guarantees in real estate.
When your home appreciates you have a greater asset to borrow against, and you'll realize a larger profit when you sell.
There is a variety of reasons why property values in Miami shift. So, how will you know what you're purchasing presently will appreciate over time?
The most important aspect is that you choose an agent in Miami who knows the factors that influence local prices.
Many believe that the economy is the number one factor impacting real estate appreciation.
Clearly,
there are numerous issues on a national level that adjust your property's value: unemployment, interest rates, business growth, and more.
However, your home's value and the features that play the most significant role in its appreciation depend on the local Miami economy and housing market.
Location in a community - Most people want homes in the areas with the most accommodating amenities, like our jobs and schools.
So these areas often appreciate, or carry their value, best.
Recent sales - Your agent should provide you with information on the recent home sales in the areas that you're asking about. You'll want to know average time on market, selling versus listing price and more.
History of appreciation - In the last 5-10 years, have house prices risen or declined? Does location or affordability affect how desirable the neighborhood is considered?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a nice combination of job types in an area, or does it count on just one industry? Is the mix of commercial and residential development changing?
All these play a part.