The United States is home to the largest Haitian migrant population, with 70 percent of the country’s Haitian population residing in either Florida or New York. Seeing as New York is notoriously known for their aggressive state income tax, Florida takes the proverbial cake in this scenario as providing better tax benefits to homeowners. Following recent tax reform laws, renewed cultural interests and an increasing wave of Caribbean-influenced businesses, Haitian residents are experiencing an uprise in just exactly how they can turn their Florida homes into a lucrative lifestyle, and you’ll want to get in on it, too.
What to Know About the Federal Tax Reform
In 2017, the US government signed the federal tax reform into law, and while this affected investors and homeowners by setting a cap on deductions for property taxes, income and sales of a home, it actually worked in Florida’s favor. Why? Florida doesn’t have state income tax. Following the tax reform, there has been a dramatic increase in the demand for property in Florida, and particularly in the Little Haiti neighborhood in Miami. With an average rental income of $2,009 and an average Airbnb rental income of $2,376, Haitians looking to either invest in rental property here or turn their Little Haiti home into a money-making house have the ability to do so.
Financing Renovations to Increase Appeal
In order to compete in an increasingly competitive rental market, Haitians will have to make the most of their Florida property and its appeal. One way to do this is to take out a reverse mortgage on the home in order to fund renovations, repairs and general improvements. While this can sometimes be a risky decision, it generally pays off as they provide owners with a large lump sum of cash to invest in increasing the overall value of their property, especially in a neighborhood as attractive as Little Haiti. The great thing about these types of loans is that you don’t have to make monthly payments on it and will repay it once you sell your home or move to another property, making it relatively low-risk and an easy way to access tappable equity and make it work in your favor.
You’ll Find the Most Money in Short-Term Rentals
As long as the Miami real estate market continues to heat up, so will Little Haiti. Seeing as the Airbnb rental income exceeds that of the average rental income in Little Haiti and all throughout Miami, it’s recommended to invest in property that can be used as a short-term rental as opposed to buying to let. Tapping into the cultural interests of Airbnbs and vacationers looking to experience the best that Miami and Little Haiti have to offer, while it’s hot, is crucial for Haitian homeowners. Investing in their properties to draw the attention of guests, whether long or short-term, is only one way to make money off a property, but in 2019, it’s shaping up to be one of the most lucrative ways.