While experiencing six years of impressive growth in gross domestic product and successful fiscal policy, investor mistrust of the Argentinean banking system and current fiscal policy drive the middle class and affluent Argentineans to invest capital overseas, particularly in the U.S. Miami continues to be regarded as a home away from home for Argentinean purchasers. This group, when available, prefers standing inventory to pre-construction because of its tangibility.
The Brazilian economy is robust and its currency strong due to success in sectors like agricultural, mining, manufacturing and service. Brazil has the most sophisticated economy in Latin America and was one of the first emerging markets to begin post-recession recovery. Prices of homes in Brazil are much higher than in Miami and many wealthy Brazilians are choosing to buy a second home in the U.S. as a hedge to their banking system, potential profit center through rentals or actual second home for family.
Security remains a high concern for middle-to-high-class Colombians and the security of Miami is appealing. The continued economic problems and violence in Colombia have led to an emigration of Colombians to the U.S. Colombians have always been drawn to Florida’s beauty, Spanish speaking population and financial security of owning a property here.
Income distribution in Mexico remains highly unequal, but high-net-worth Mexicans continue to seek investment opportunities in real estate overseas. The percentage of Mexican buyers in the U.S. has been a growing over the past few years. In 2010, Mexico replaced the U.K. as the second largest buying group purchasing real estate in the U.S. with 10% of buyers.
Venezuelans continue to seek safe havens for their assets. The risk of capital flight and the search for secure second homes due to their socio-political factors are the single most important motivations for Venezuelans to purchase property in South Florida. Due to political and security risks when promoting a property in Venezuela, private meetings are the most important strategy for targeting buyers, rather than local advertising.