Miami’s booming real estate market has become a magnet for Chilean investors seeking diversification and strong returns. Since 2019, the value of premium single-family homes has surged by 286%, fueled by foreign capital, talent, and corporate migration. Yet, alongside opportunities lie risks. Experts from AGD Developers, a Chilean-led firm active in Miami, warn that recurring mistakes often reduce profitability and can turn the “American dream” into a financial setback.
Key Points:
- Aesthetics over strategy: Investors often prioritize dream designs or renders without analyzing zoning, appreciation potential, or rental demand.
- Underestimating property conditions: Many Miami homes date back to the 1950s, making upgrades to modern standards costly or unfeasible.
- Ignoring timelines and complexity: Flipping projects may look simple, but permitting and luxury market standards can delay and increase costs.
- Neglecting after-sales management: Poor maintenance and lack of tenant management reduce long-term value.
- In many cases, demolition and new development prove more profitable, with AGD achieving IRRs above 20% on projects featuring Italian kitchens, wellness rooms, and energy-efficient design.
Read the full article to discover how Chilean investors can avoid costly missteps and turn Miami’s real estate boom into a lasting success.
