Why South Americans Should Invest in the U.S Despite the High Dollar
Miami, Florida has long been a hotspot for investors and tourists from South America. Better yet, some say it’s the capital of South America. With its continuously growing tourism industry, warm weather, fine dining, and great shopping Miami is a prime spot for foreign investors.
Let’s be real, the Colombian peso will remain unreliable as long as the country’s main legal income comes from oil. We’ve seen this since last year with a sharp devaluation of the Colombian peso. But don’t count on just oil to move the economy. With the Peace process with the FARC in progress, changes in Colombian politics, and speculation of a bubble in real estate prices, the tomorrow of Colombia is blurry. Who knows what will become of the Colombian peso.
On the other side, the U.S presents itself with a more stable and growing economy. It just seems like a surer bet than Colombia, who’s cocaine production has skyrocketed since 2014 despite what the local media claims and reports on the country’s “fight against terrorism”.
Here’s just a few reasons why South Americans should consider investing in the U.S despite the high U.S Dollar.
The U.S. Economy is recovering rapidly
After the economic crash of 2008, it looked as if the United States may no longer be the best place to invest. The U.S. dollar suffered tremendously, unemployment skyrocketed, and the real estate market collapsed. But today, the market is recovering. Millions of new jobs have been created, and wages for American workers have increased, leading to a stronger U.S. economy.
Americans today are paying off their credit card debt, and big corporations are reigning in spending too, creating a much more stable economy. Though recovery has been slower than many Americans would like, economists predict that the U.S. economy will continue to grow until 2020, which would make the current economic recovery the longest period of U.S. economic expansion since World War II.
A stable U.S. economy
In spite of recent ups and downs, the U.S. economy is typically pretty stable. Even when other world economies are struggling, the U.S. economy has shown itself to be resilient.
South America’s been hit hard
A few years back, economists were raving about Argentina and Brazil’s tremendous growth. Today they are struggling to survive. Not to mention countries such as Brazil, Colombia, Argentina, and Venezuela have all suffered from severe devaluations.
My father who lives abroad tells me how bad South America is doing. From the information he sends me, international media paints Venezuela as the big picture of South America. And we all know that Venezuela is the worst of them all, causing Latin America’s overall GDP to fall into negative numbers.
With this type of information and uncertainty being communicated overseas, which foreign investor would want to bring their investments to Latin America?
Miami property values are expected to rise
During the recession, real estate was at an all-time low, but today it’s back on the rise and there’s never been a better time to invest in property.
The city is bouncing back from the real estate market crash of 2008 quicker than other large cities.
Experts say that the real estate market in Miami has matured, and that there is very little investment risk.
In fact, Miami is what’s known as a safe haven market, where the real estate market isn’t tied to the usual factors. The Miami real estate market is essentially in a constant bubble, since most of the demand for housing come from investors who reside outside of the country.
And on the contrary, global instability only contributes to the growth of Miami’s real estate market, as more South American investors turn towards Miami as a safe place to invest their money during times of economic turbulence back home.
A booming tourist destination
Miami is a booming tourist destination, attracting visitors from all over the world. 45% of tourists to Miami come from outside the U.S., of which 66% are from South America. Thanks to its beaches, world-class hotels, fine dining and shopping, plus its proximity to Orlando’s theme parks, Miami is likely to continue to grow as a tourist destination.
Parts of Miami are improving
A few years back, downtown Miami was a neighborhood to be avoided due to its close proximity to some of Miami’s ghettos. Back then, monthly artist expositions would take place and that was about it. Today, it is cleaning up its act and areas such as the artsy Wynwood district have attracted tourists and South Beach’s trendy crowd.
As a matter of fact, downtown Miami has become one of America’s fastest-growing urban centers. In the past eight years, over 20,000 new condos and 78 new buildings have been constructed in the downtown area alone. The population of downtown Miami is up over 80% from ten years ago, and this boom shows no sign of slowing down.
Miami Beach is a growing hotspot
Miami Beach has always been a hotspot but it still continues to grow. New real estate developments are popping up all around Miami Beach, and more people are making Miami Beach their full-time home instead of just a vacation home.
Diverse industries thrive in Miami
Real estate isn’t the only area where Miami is growing. In fact, a wide variety of industries are booming in Miami (other than the porn industry), making it one of the world’s wealthiest cities. Miami is home to largest concentration of foreign banks of any city in the U.S..
Over 1,400 companies have chosen to base their Latin American headquarters in Miami, rather than in Latin America, making Miami an ideal location for Latin American business.
Additionally, Miami has one of the busiest international ports and international airports. The Miami International Airport ranks first in international freight and second in international passengers out of all airports in the United States. And when it comes to Spanish-language television and media, Miami is the place to be.
With a wide variety of booming industries, ample opportunities for investment in real estate, and a strong (and growing) U.S. economy, South Americans have every reason to invest in the U.S. dollar and to put their money in Miami.
Looking to purchase property or need property investment assessment in Miami? Don’t hesitate to contact my father, Hughes Longelin, a licensed Florida realtor associate at:
Hollywood Beach Realty Inc.