7 mistakes Latin American investors make with their first Miami condo
Choosing by the rendering, skipping the rental rules or forgetting the tax on resale. The mistakes I see most often and how to avoid them from day one.
I work with many Latin American investors on their first Miami purchase, and the same mistakes keep coming up. None of them is serious if you catch it early; almost all of them are expensive if you find out at closing.
1. Picking the project by the rendering
Every building looks beautiful in the images. What makes a good investment is the exact location, the unit's orientation, the deposit schedule and who will rent it out once it is finished.
2. Not reading the building's rental rules
Each condominium decides whether it allows short-term rentals, the minimum stay and the operator. Some projects are built for it, like ELLA Miami Beach, which permits short-term rentals; others only allow annual leases. Your return changes completely with this one rule.
3. Running the numbers without carrying costs
On top of the mortgage you will pay HOA dues, insurance and property tax, which in Miami-Dade is roughly 2% a year of assessed value when it is not your primary home. Do the full math before signing.
4. Assuming the bank will lend like at home
Foreign national loans exist, but they usually require a larger down payment, often 30% to 40%, and more paperwork. Talk to a lender before you commit, not six months before delivery.
5. Signing without knowing your cancellation right
Buying direct from a Florida developer comes with a right almost nobody uses well: 15 days to back out, counted from signing and delivery of the condominium documents. Use them to review everything calmly.
6. Forgetting about the exit
When a foreign person sells US real estate, the buyer generally withholds 15% of the gross price (FIRPTA) against your taxes. You can recover the difference, but it pays to plan for it from the day you buy.
7. Choosing the ownership structure after buying
Buying in your own name or through an LLC has different tax and estate consequences. That conversation with an accountant belongs before the contract, not after.
If you are looking at your first condo, write to me. We will review the project, the building rules and the real numbers together before you place the first deposit.
