The Worst is Probably Not Over for Property in Miami
Country: Florida, United States
The peak for property in Miami came during the latter part of 2004, long before that other disturbing phrase, ‘credit crunch’, had become part of common parlance. Now that it’s been in freefall for over four years, property pundits are becoming tentatively bullish – if that’s not an oxymoron – about the future of the market in this perennial hotspot. The rich and famous have been making beelines for property in Miami since the earliest days of the silver screen, which explains the phenomenal amount of art deco architecture – especially close to the beach. And the city’s attractions are many and varied, including an eclectic and fascinating downtown, beautiful parks, sensational shopping, restaurants and nightlife, and, in South Beach and Ocean Drive, one of the world’s premier see-and-be-seen locations. Statistics, nonetheless, make for grim reading for any potential property speculator waiting for the rock-bottom gold rush. The Home Tracker website, which collects and interprets data from throughout Miami’s metropolitan area (including the likes of Boca Raton, Delray Beach, Fort Lauderdale and Palm Beach), shows a steady decline in prices running up to the last reported period of December 2008. Home Tracker states that the median property price in April 2006, was around £260,000, while by December 2008 the figure had slumped to £164,000 – a fall of well over 30 per cent. Simon Pyle of Countryside International makes no bones about his view of the market, saying: “In the residential property opportunities lie in the defaults. The most profitable type of default is when buyers are unable to follow-through with their previous commitments to close on a ready-to-occupy unit. This commonly happens in brand new buildings. The big advantage for the new buyer is that since there is an excess inventory of Miami properties in the market, the developer is selling these at 2004/2005 prices minus the 15 per cent deposit that comes from the previous buyers abandoned down payment.” The Miami property slump is putting the ‘real’ into real estate, and even the most optimistic agents are having to admit that the worst is probably not over. Ines Hegedus-Garcia of Majestic Properties, in Miami's Design District, sees the banks as part of the problem (don’t we all?). She says: “Banks are not in the business of holding inventory, and are in many cases underpricing properties to sell them quickly," Difficulties with securing financing, she says, simply add to the problem. "We are seeing a lot of deals fall apart because buyers are not qualifying for loans," she says. The future, though, says Hegedus-Garcia, is bright. “I don't see a massive increase like we saw in 2005 and 2006,” she says, “but I see a normal historical upward trend in revaluation of Miami real estate in general.” Independent emigration and Florida property specialist, Andrew Bartlett, is less optimistic about the year ahead for Miami property, but is prepared to go this far in recommending a purchase: “If you know the area or you’re planning to emigrate, and you do thorough due diligence, take independent and impartial advice, you know what you’re doing, and you build into an offer a further discount – in that scenario, it may be reasonable to buy…assuming you’ve got the currency situation right.” Reading between the lines, you may feel Bartlett has lost faith in real estate as a cash cow. You’d be right. He goes on to say: “I personally think that buying property in Florida can no longer be used as a money machine, certainly not for the next ten years.” However, Miami broker Ian Vucetich disagrees. Vucetich specialises in selling foreclosure property, and claims his buyers can enjoy discounts of up to 60 per cent on the peak prices of recent years. He says: “Foreign nationals have recently increased their purchases of depressed properties as investments, as opposed to the recreational buyers we enjoyed in the last couple of years.” And he further asserts: “We do believe the American dollar is in a strengthening path against all other major currencies including the euro and the pound. As such it is a better investment for foreign nationals to buy US properties that will also offer currency appreciation, instead of holding investments in their own markets.” Many prospective investors will be sceptical about the ability for Miami property to bounce back in the short-term. What’s certain, though, is that Miami will always have the pulling power to seduce lifestyle purchasers who don’t feel the need to make a quick buck. And the well-heeled will certainly find property here to suit their deep pockets. On Watson Island, between downtown Miami and South beach, the Flagstone Property Group is undertaking a top-flight (and top-dollar) development called Island Gardens. With sensational views over Biscayne Bay, and situated next to the anticipated Super-Yacht Harbor, this high-rise beauty will comprise a 150-room Shangri-La Hotel and 100 attached residences. The intriguing thing about this uber-luxurious piece of Florida real estate, though, is its affordability; it’s being sold with a fractional ownership scheme and the 100 units, boasting from 74 to 344 square metres of living space, range in price from £156,000 to 531,000 per fraction. Mehmet Bayraktar, CEO of Flagstone, says of the fractional opportunity: “You know you’re not going to be flying 365 days a year, so why buy a $20 million plane? It’s the same with these, which would otherwise be $6 million apartments” It’s a fair point, although Mr Bayraktar’s analogy perhaps says more about his own rarefied financial status than the desirability of the property. More relatively affordable condo property can be found a stone’s throw from the swanky high-rises of Porta Vita, in Aventura. Turnberry Village is what’s known as midrise real estate, and, with its Mediterranean-inspired architecture and relatively diminutive 14-storey stature, it stands attractively apart from the skyrise. With old-world fountains, lush tropical landscaping and red-brick walkways, Turnberry Village has an elegant appeal, and its three-bedroom, three-bathroom, 146 square metre apartments should at £312,000. Taking a healthy leap up the price ladder, Bal Harbour is the location of the sumptuous St Regis Resort & Residences, a joint development of Starwood Hotels & Resorts and The Related Group. Property in Bal Harbour is highly desirable, and being a neighbour of Miami Beach has helped buoy prices there; in this case, one-bedroom residences, with 165 square metres of living area, on a pristine stretch of beach, start from around £1.32 million. If you need to ask the price of two- and three-bedroom properties… well, you know how the saying goes. Fortunately, as with Island Gardens, there is a fractional ownership option within St Regis, although it’s limited to just 24 of the 300-odd private residences. Another Aventura development, Atlantic III at The Point (which is actually part of a five-tower community) boasts homes set amid more than 14 hectares of landscaped park area, with views of waterways, lakes and the sea, depending on your Point of view, so to speak. Residents benefit from the large grounds with numerous swimming pools, a children’s play area and a beautiful waterfront promenade around The Point marina. A three-bedroom, two bathroom, 250-square-metre property within Atlantic III will set you back around £555,000. And if you’re thinking perhaps you’ll wait for prices of this lot to fall a tad further, it’s worth remembering that there is a lot of oceanfront Miami properties and it’s one of the most sought after destinations in the world; perhaps they will and perhaps they won’t.
First published in April 2009.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
Mike Hayes
There's also a range of articles for you to read about buying property in United States:
As well as our overseas news stories affecting the property market in United States .
Or view our range of property for sale in Florida.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
Some properties in Florida, United States
|
|
|
|
Price: $59,900
|
Type: Mews
|
Bedrooms: 1,2,3
|
|
|
Description :
Vintage Grand is a stunning Lakefront community located in the prestigious “master planned” neighborhood of Palmer Ranch.
|
|
View details | Enquire further
|
|
|
|
|
|
|
Price: $60,900
|
Type: Apartment
|
|
|
|
Description :
Mosaic at Millennia exudes style and Sothern charm and is quite simply the most conveniently located gated condominium community in Orlando.
|
|
View details | Enquire further
|
|
|
|
|
|
|
Price: £41,151(GBP)
|
Type: Apartment
|
Bedrooms: 2
|
|
|
Best investment deal - Villages at Town Centre is a private gated resort complex located in Orlando, close to Disney and all nearby tourist attractions.
|
|
View details | Enquire further
|
|
|
|
|
|
|
Price: £47,000(GBP)
|
Type: House
|
Bedrooms: 4
|
|
|
THIS IS ONE OF A SELECTION OF BANK OWNED HOMES - 4 bed Pool Home, 2 bath, 1652SQ FT, BUILT 1998. Formal living, dining and family room, great eat-in island kitchen with breakfast bar. Master suite with walk-in closet, garden tub and separate shower!
|
|
View details | Enquire further
|
|
|
|
|
|
|
Price: $78,900
|
Type: Apartment
|
Bedrooms: 1,2,3
|
|
|
Description:
Visconti is located in Maitland, one of Orlando’s most exclusive suburbs. Maitland caters for the wealthy resident and is particularly popular due to the quality of educational institutions and local businesses.220
|
|
View details | Enquire further
|
|
|
|
|
|
|
Price: $79,900
|
Type: Apartment
|
Bedrooms: 1,2,3
|
|
|
Description :
Probably one of the most beautiful developments we’ve seen.
Waterside at Coquina Key is in St Petersburg, one of the most famous towns in the State of Florida.
|
|
View details | Enquire further
|
|
|
|
|
|
|
Price: $94,900
|
Type: House
|
Bedrooms: 3
|
|
|
Property Description:
Lot's of room in this house. Master bedroom is 17x26 with walk in closet and a 10'6"x7'6" Master Bathroom. 1 Bedroom needs some drywall to complete the room.
|
|
View details | Enquire further
|
|
|
|
