Could Hit Chavez Death The Florida Housing Market Recovery?
South Florida has the greatest population of Venezuelan. The most population of Venezuelans are in the City of Doral in Miami-Dade County. Over 200,000 Venezuelans have called Doral their new home after fleeing the Chavez regime. They choose South Florida because it is close to their home country and of course it has a similar climate and the famous Miami’s flair.
For many of us in the real estate profession in South Florida we are asking our selves how will Chavez death influence our daily business. The question now comes up more and more “Could hit Chavez death the Florida Housing market recovery?”
As confirmed a new election will be called, and we think many Venezuelan will wait on the outcome of this election. This election can open new way’s in Venezuela’s history. Many rich Venezuelan who have fled their country have come to Florida to escape the socialist economy preferred by Chavez. With the new election, a chance can open the door for a new elected business friendly president. Many Venezuelans could return to their homeland and reunite with their families in Venezuela. Venezuelan who did not live in the US choose to buy property close to their Family members in South Florida and use this as Vacation or Investment homes. In our opinion the answer could be yes to the question could hit Chavez death the Florida Housing market recovery?
We don’t believe that too many South Floridian Venezuelan will return to Venezuela, but their Families who wanted to spend their cash in the South Florida housing market will now wait and put their purchase plan on hold. They will not spend their money on South Florida properties, and that is bad news for real estate broker and real estate agents. Many of those buyers would have paid in cash which is lost in our market. Now they will wait and see what happens.
A prediction was made in 2012, that in the year of 2013,Venezuelan buyer would be the number one international buyers in Florida, followed by Columbians who will lose their spot to the Venezuelan. More in depth a 2012 survey showed that all purchases by Venezuelan have been purchased as a rental property, which tells us this purchases were for investment purposes. More even, 69% of those property sales have been purchased by all Venezuelan in cash at the time. Those buyer brought their cash to South Florida to keep it out of reach by the Venezuelan government. This cash money kept the South Florida market going since no lending requirements have been tied to these purchases.
After speaking to many Venezuelan clients about Chavez dead, those buyers out of Venezuela will wait what will happen on Election Day before they will bring more money to South Florida. If they get a business friendly president those rich man’s money will stay in Venezuela. In return, Families who live in the states will more often spend their vacations back in Venezuela and with their families, and this will be lost cash to our economy.
It’s for all a wait and see event how the election in Venezuela works out and how Could hit Chavez death the Florida Housing market recovery!