Covering an area of 151 940 km2 (about a third of France!), this little paradise has 300 days of sunshine per year, a GNP of over 400 billion dollars and a most favourable tax system… 400,000 ! Here is the number of people who set up each year in Florida. To those who still wonder why, it must be said that Miami has a convergence of advantages. Miami has 6 international airports with 150 airlines flying to 185 destinations. Indeed the most important characteristics to be the first world tourist hub. To those who like to sail away, Miami is also the world capital of cruises with sea routes to 100 countries and 250 world ports. The Miami port is the only place in the world where thousands of up-market passengers cross each other at about a hundred meters with tonnes of freight.

A dynamic metropolis
But Florida does not boil down to just that; gone are the stereotypes of golden retired people and all kinds of traffic… With over 17.5% of people being +65 years and a 94% decline in criminality rate compared to 1992, the Miami of the 90’s largely consecrated in the cult serial “Miami Vice” definitely belongs to the past. Today it is referred to as a growth pole, of one of the main American areas of employment creation…Compared to the French situation Florida’s unemployment rate is under 3%! This rather indicates a shortage of labour! In the hotel sector some are even compelled to have recourse to Mexican labour. Characterised by a young and dynamic market, Florida is a contact point between the American market and those of South America. A relationship enhanced by a Hispanic community largely represented there… And this population only rarely contributes to boosting up the low class or marginalised populations. Quite the contrary; they often belong to the middle and sometimes higher classes… Emblematical exemple: Jorge Perez, Executive Chairman of Related group, which is the third largest promoter of the United States! Miami is also the United States’ largest international banking centre just after New York. According to forecasts by the US Census Bureau, Florida will overtake New York as the third most populated state as from 2020… Won’t Miami become the sunny alternative to Manhattan? As regards technology, it is also at the cutting edge. Thousands of companies specialised in information technologies, 2nd concentration of medical laboratories in the United States, 4 world leaders can be found… Miami city’s financing of an artistic center for over 250 million dollars is line with the birth of a cultural and artistic landscape. At South Beach, the area of art deco and the Mecca of night life, one just has to pace up Ocean Drive and Lincoln Road to understand why some talk of the American capital of fashion… But you can also go to North Miami and take your lady to the innumerable luxury boutiques of Bal Harbour. And why not set up in Key Biscayne, the famous billionaire’s island ? Let’s dream…

An omnipresent French diaspora
Amid a population of 18 million inhabitants (a growth rate of 23.5% between 1990 and 2000, and forecasts of +21% by to 2010!), the French Diaspora is among the most active of Miami. France is one of the largest foreign investors in Florida, over 35 billion dollars invested in 5 years! 25% of French subsidiaries set up in the United States are located in Florida. We can count no less than 110 French companies with the presence of big names such as the LVMH group, l’Oréal, Alcatel or even the Club Méditerranée. With over 21 non stop flights per week to France only, there are millions of flights which each year link up the United States and Europe. According to some official statistics the French presence is estimated at almost 25,000 people. During French Tuesdays – evenings gathering about 2,000 members and organised by Cyril Kadouch - all conversations centre around one and the same subject: make money!!!

The “american dream” at hand
Billions! And in dollars please. The American dream is not a remote remembrance going back to the times of the gold rush. It is more than ever real in a region where growth is going on well while the international scene is rather on a stabilization trend. Here, it is not uncommon to hear accounts of some people who landed in with some dollars in the pocket and who today drive in their Porsche without any complex. In Florida people have a different outlook to competences and to success. There is confidence in the professional qualities of the individual, in his project rather than in his age or in his origin. Hence we see successes as rapid as they are spectacular! Paul bakeries are well settled after 8 months and have overshot their objectives by over 40% according to Vladimir G.Alfa. Another unbelievable success story is that of R.Vertalier who has launched many magazines meant to attract clients to Malls. For investors, Miami also offers some exceptional opportunities to make money and particularly in the real estate market. One of the very fashionable methods in Miami is “Pre Sell”. In the United States, the acquisition system for new property is different from the French system. All that is required is to pay 20% of the total price of the asset upon reservation. The remaining 80% is paid at the end of the works. It is at that time, at the “closing”, that the final deeds will be signed. Meanwhile, from 15 to 24 months, the purchaser can “sell back” his reservation and cash in the capital gain. As an example, purchase of an apartment at 500,000 $. The purchaser will pay 20% at the reservation, i.e. 100,000$. The apartment is sold back during the construction period for 590,000$. The gross capital gain is 90,000$, to which the intermediary’s commission (about 5% of the sell price) of 30,000$ will be deducted. Hence the net capital gains before taxes is 60,000$ i.e. 60% compared to the initial investment (100,000$) ! While some are congratulating themselves for an increase of 2% of the stock market… The amount of taxes to be paid will depend on the total amount of gains realized over the year as well on as the purchaser status (individual, company, resident…) While this system appears simple and does not require any specific structure, it is appropriate to take some precautions and particularly as regards the following points: promoter’s standing, quality of the location, state of the economy. Do not hesitate to call for a professional, estate agent and lawyer, especially if the purchaser is not well versed in this sector. Also do not forget that should the case arise the purchaser must go to the end of his commitments and sign the final deeds. But also know that if the purchaser’s choice goes towards big promotion names such as Related Group, Desert, Trump or Fortune he will minimize the risks. Assuredly, considerating all its advantages (climate, investment, style life, capacity of development…), Miami is indispensable as the new Eldorado of the 21th century. To be continued.