Political and economic problems in Latin American countries has led to many of their wealthiest residents taking money out of their countries and buying expensive luxury condos and penthouses in Miami, Florida – REPORTED EL PAIS.
Over the last year and a half, while the global economy has been suffering historic lows, Miami has witnessed a boom in real estate purchased by Latin Americans. Brokers and realtors say this is not like any investment wave seen before. On this occasion, buyers are turning their investment into their new permanent residence.
In Brazil, Peru, Chile and Colombia, huge protests were stoked by poverty and inequality, leading to a shake-up of the political landscape with the rise of polarizing, radical and in some cases authoritarian figures, generating uncertainty and mistrust among the richest strata of society.
For many people, the easiest way to move their assets overseas is to invest in property, and in Florida, 34% of foreign real estate purchases come from Latin America, according to the National Association of Realtors (NAR).
Rise of Bitcoin transactions and other cryptocurrencies
The use of cryptocurrencies has become so commonplace that people are already purchasing properties in this way, says Merrick Theobald, spokesman and vice president of marketing for bitcoin payment service provider BitPay. Through online platforms such as condos.com, many Latin Americans are making property purchases with cryptocurrency. “When the value of their cryptocurrency rises, people like to use their profits to buy something, commonly luxury items or property. They buy jewelry, a car, but also residences,” says Theobald.