Recently, the French election changed the face of real estate in London and New York, as wealthy investors fled what they considered a dangerous new time, and tax, for the French elite. In Argentina, the newly re-elected Cristina Fernández de Kirchner sent investors, along with their American dollars, escaping into Miami. Now, with the Chavez winning his election in Venezuela, it is looking like there will be a greater flight of capital to Florida once again. Let’s look at some other pivotal elections coming up in the next year and see if we can use them as a crystal ball for Manhattan or Miami real estate.
Chavez will be in power for another six years. This is daunting news for the wealthy citizens of Venezuela, and impetus enough for them to leave with what American dollars they have. Wealthy foreign investors will be looking for a safe haven for that money, and with its similar climate, language, and welcoming nature, Miami makes for a likely place to invest. Miami luxury real estate has been changing hands with South Americans sight unseen. And most of the residences are being bought with cash. There are even rental initiatives in place, so they can recoup some of their mortgage while they are still in their mother country.
Venezuelans will be expected to request entry under the United States’ EB-5 visa program. However, there are many realtors that are happy to help provide immigration lawyers for this service. A part of the program grants new immigrants two-year visas provided they invest at least $500,000 in businesses in rural or high unemployment areas, creating ten jobs. With the visas comes ownership. Venezuelans are the biggest foreign investors in Miami real estate, accounting for 15 to 16% of foreign clients, with Chavez back in power, many Miami realtors believe that this number will increase even more.
Knowing a new boom is on its way, Miami realtors can brace for an influx of foreign capital, and savvy investors can buy early enough to precede the rise. Looking around the world, we are soon to see elections in the Baltic States of Europe: Slovenia, Lithuania, the Czech Republic and Romania. However, the big one will be the Italian election in April 2013, and the Germany elections September 2013. If the policies and discontent between the classes is as pronounced as it is in France, you can expect to see a huge influx of Euros in the coming year.
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