Attila Ozan Yildiz’s Real Estate Investing Guide for Newlyweds

Congratulations on the start of your new life together! As you and your new spouse have dreamed and planned for your shared future, no doubt you’ve set goals and imagined what your lives would look like ten, twenty, and more years down the road.

 

The beginning of your marriage is the perfect time to begin making your shared dreams and investment goals come to fruition, and real estate can be a very lucrative – as well as practical – way for couples to achieve this.

 

Attila Ozan Yildiz has assembled advice and helpful tips to help newlyweds begin their shared portfolio with luxury real estate in Miami Beach, FL. 

Condos in Miami Beach are selling at a median list price of $720,000 as of February 2023 and are selling in less than a month’s time. Inventory is significantly lower than it was at the close of 2022, so properties are grabbed quickly as soon as they become available. Inventory is expected to increase as we move into spring and early summer, as Miami Beach typically sees a listing surge begin in March.

 

Single-family houses have seen dramatic fluctuations in pricing in 2022, and after a stabilizing dip at the end of the year, prices in 2023 have begun to surge upward dramatically. As of February 2023, the average home was listed at $12,900,000, and even so, homes may be sold before they even reach the MLS – or are sold within days. As interest rates and inflation diminish, an upsurge in buyers and real estate demand is expected to quickly follow.

 

Real estate is a reliable long-term investment. Properties appreciate yearly and, generally speaking, home values double every eighteen years. In highly desirable and steadily growing areas, such as Miami Beach, appreciation can be accelerated.

As is true in other aspects of marriage, investing together can enable you to achieve more than either of you would alone. With pooled incomes, you have more potential investment capital. You may also find it easier to qualify for a more substantial loan should you choose to borrow funds and utilize a mortgage to pay for your luxury real estate in Miami Beach, Florida.

 

An explanatory note on mortgages – lenders will scrutinize both you and your spouse’s credit scores in order to determine your qualifications. It is the middle score of the lower-scoring partner that will determine your qualifications. Therefore, it is important for both of you to develop a strong credit rating before you invest.

Begin your investment planning in the same way you’d start any venture in marriage – with open and honest communication. Finances are one of the top sources of strain on a marriage, so you and your spouse must come to an understanding in order to make your investment successful. Ask these questions:

When the two of you have come to an understanding of each other’s thoughts, needs, and goals for investing, it’s time to take a close look at your current income, your debt-to-income ratio, and create a budget for your Miami Beach investment property. Seek the professional advice of your financial advisor, who can help you craft the ideal plan to help you achieve your financial goals. Likely, they will advise you to build a strong emergency fund, typically equivalent to six-eight months' worth of living expenses first, and then begin developing a second budget, separate from your main daily operations budget, to be utilized for your investments.

There will be seasons of life in which it is more advantageous to rent your home – for the short term. The first is a period of uncertainty, such as when you’ve just relocated to a new city and have yet to understand the character of the neighborhoods and where you’ll best fit into your new hometown. You may also want to consider renting if your time in an area is expected to be brief. Are you in a job that is likely to relocate you in a year or two? Do you anticipate seeking new work opportunities soon? If you plan on living somewhere for less than five years, you may find that purchasing a home is not a good investment strategy at the moment.

 

However, if you are planning on keeping your home for five years or more, purchasing a home is a great idea. The rental market has seen explosive demand recently, with cost increases nationwide at 15% per year. Mortgage rates may be high right now at 6.94%, but once you lock in a rate, it is yours for the duration of your loan. Imagine the long-term savings if you pay $3000 per month toward the mortgage of your own home versus $3000 a month toward an apartment now, only to have it increase to $3,450 per month next year, $3,968 the next year, and so on for fifteen or thirty years. And at the end, you walk away empty-handed, whereas, with home ownership, you have a significant, appreciated asset to enjoy, rent, or sell.

Whether you choose a condo or a single-family property for your Miami Beach investment property, it can generate significant wealth for you in a variety of ways. As your primary residence, this is your new family’s point of origin. There is something inexplicably endearing and unifying about purchasing your first home together. It will be the place you always look back to with fond memories, and in the present, it will give you a tangible way to grow together in your marriage.

 

If your purchase is for a second home, you have a number of options. You could use the property exclusively and have a wonderful place to get away, recharge, create new traditions, and enjoy family time. You also could generate an additional source of income by renting out the property when you are not using it. Miami Beach is a popular destination throughout the year, thanks to the warm, sunny climate and great location, so keeping it booked will be a cinch. If you don’t plan to personally reside in this property, you may want to consider renting it out long-term.

 

Regardless of your approach, owning a Miami Beach investment property will help you build wealth through equity, and you can be confident of your investment, as real estate has historically appreciated at a rate of 4% per annum and can double value in as soon as eighteen years (on average).

If you’re intrigued by the idea of real estate investment to build a sound financial future for your new family, get in touch with Attila Ozan Yildiz. He’ll be happy to answer your questions and help you find the perfect property. Give him a call today.