Bargains of the Miami real estate market
February 25, 2014
Shopping Tours in Miami foreigners are not only large clothing and appliances, now also roam the city in search of condos and properties that , due to the mortgage crisis, rates are achieved by trinket . “These are perhaps unique opportunity to buy . The prices today are in Miami Beach who knows if it ever will be repeated , “he told AFP Michelle Iglesias, Agent Keyes , a renowned local firm of property … In South Beach, the most touristic area of Miami and most sought international investors , European and many Latin Americans , competing for cheaper condos range between 70,000 and 100,000 dollars, which is considered price will go up soon .
In other areas further north , less touristy , there are apartments ” For Sale” $ 50,000 .
Narrow operation who come from abroad should be a corporation, which is often done through the property itself at low cost, for the payment of annual taxes .
“Many buyers Brazilians , Venezuelans and Argentines are buying very cheap apartments in Miami Beach, but also units category , at a great price , Brickell Area ,” a signature Weichert agent , who declined to give his name.
“Latin Americans here will get prices that are much lower than other beach destinations in South America that have much less potential than Miami ,” he added .
The properties in the Miami area were down 47%, almost half the value it had in 2006 , at the peak of the so-called housing bubble , according to the Case- Shiller & Poor ` s Standard index of property prices .
Analysts warn that the market will not recover until the portfolio is reduced in the hands of banks , which are sold at a bargain price , and to improve the labor market in the United States.
“Unemployment is still high , people are afraid they can not afford housing costs and is very difficult to get credit ,” said Maureen Maitland , vice president of industry price index properties of Standard & Poor’s.
About 5,000 properties, including homes, condos and commercial real estate are held each month of the unpaid mortgage banks in the Miami area and around, according to the specialized site Condovultures Realty, which currently has a database of 236,000 foreclosed units in south Florida .
With a huge supply, prices have not fallen by more than were largely supported by strong foreign demand, according to the Realtors Association of Miami in its November report.
The organization notes that ” international buyers are pumping strength ” in the property market , which begins to show some signs of recovery , according to its president Oliver Ruiz.
Beatriz Lamanda , Venezuela , invested $ 80,000 in the purchase of two condominiums north of Miami Beach.
“I’d rather put the money in propieddades to leave on the bench. In a few years I will have a good difference because prices will certainly go up , “he told AFP.
Others opt for luxury real estate investments that can provide greater long-term profitability.
In the building, ” Icon” , a complex of three towers, designed by French Phillipe Stark, in the financial district of Brickell , the most modern city , apartments sold for $ 250,000 two years ago were $ 370,000 .
“We have sold 350 units in recent months . Most buyers are international in countries like Venezuela , Argentina and Brazil. Also in Colombia , Italy, Mexico and Canada , “he told AFP Alejandra Castillo, Fortune International .
In the same area condos are achieved for less than $ 100,000 left in the hands of banks , and up to two bedrooms and two bathrooms for $ 130,000.
Many of the towers that were built between 2007/2008 in downtown Miami , the apartments were bought with a payment of 20 % and a mortgage for the balance remembered .
But the recession and the resulting decline in the value of property ruined the business wanted to condominiums as an investment, and failed to pay , leaving the buildings in the hands of banks.
The disaster in the condo market ” was destined to happen because many promoters sold too many units to investors who would not live in them ,” said Lewis Goodkin of Goodkin Consulting firm based in Miami .
“That created a false demand drove up prices ,” which then fell sharply to a market that could not find buyers and can not find a flat depressed , he said.
Daniel Lemin came from France for work for three days , and contacted a local realtor to see apartments.
” It’s a great time to invest. And while I wait for prices to rise I have an apartment in Miami to use or rent , “he told AFP.
The rentals are located between 700 and 1,000 dollars, depending on location, for properties of a bedroom and a bathroom .
In some cases these amounts only sufficient to cover the annual common expenses and taxes, so the investment should be seen as a long term bet expected to improve the market , say industry experts.