Who is Buying at Continuum and Why are they Buying?
- loes
- October 23rd, 2018
Continuum is seeing new listings on a daily basis. In the last week alone, 5 units were listed in the South Tower. In total we now have 29 listings in the south tower and 23 in the north. Many owners see this as a perfect moment to sell their unit and we have to agree; prices are rising and there is increased interest in the South of Fifth market. With the increased amount of listings, how can you make sure your unit is exposed to the right kind of buyer? We investigated who is buying at Continuum in order to know how to target them and how to sell your unit!
After 2 or 3 years of more moderate sales numbers, 2018 is taking up again with 22 sales so far and two deals under contract. Current Months of Inventory are 21 months for the North Tower and 26 months for the South Tower (This is a very healthy amount for the luxury market)
Who is Relocating to Continuum South Beach
Several of the sales happened with buyers that were already owners at Continuum. These buyers either up or downgraded or purchased for a family member. The majority of buyers at Continuum are from the USA. Most of these national buyers are coming from the northeast of the US and Chicago. There are still some European and South American buyers, but the largest group of investors is definitely from within the US.
Why are they Relocating to Continuum?
The main reason these northeastern buyers are relocating are the lower taxes and lifestyle. They mainly come from the states which are known as “High-Tax States” and have the ability to work from all over the US. We looked at the inherent costs of living in the high-tax states and we not only noticed the 10% (or 14% if you are from NYC) of lost income from their current city & state taxes, but also many other advantages of living in Miami. The ‘cost of living’ and the multiplier effect of owning a home in Miami over several years (for what is essentially zero cost given the enormous tax costs that one saves) allows the owner to benefit from seeing their mortgage get reduced and a potential appreciation of the home value. The multiplier effect often makes the added value not 10-14%, but 20% or more. This is absolutely impressive. If you are a high level executive and you are making $1M or more a year, a move to Miami is potentially $200,000+ back in your pocket per year.
We actually relocated a $7B company (TTI) and its entire management team from Baltimore into Miami as well as 4 different families. As we specialize in corporate and HNWI relocation we have written several relocation guides, which focus on tax benefits and important aspects such as the best Miami schools and the best condos for families. At this moment our guide is being pushed towards the right audience in the northeast of this country via effective digital marketing strategies.