Miami’s Boom to Bust

Filed Under Blog ·

During the condo boom of the last decade, Miami justifiably earned the nickname “Crane City”. I think at one point we had over 60 construction cranes dotting the downtown Miami skyline. Developers aggressively marketed their projects, each trying to create a sexier marketing campaign than the other. Supermodels were the face of the developments touting an unimaginable lifestyle of fun and success. For most of them it was a similar theme, buy a small one bedroom condo for $350,000 on Brickell Avenue, and experience la Vida Loca, “the Miami lifestyle!”

The only problem with this pitch was not the weather, beautiful infinity pools, beach volleyball courts, indoor movie theatres, or convenient location to downtown and South Beach. The disconnect was that to own a small one bedroom apartment, one had to earn approximately $80,000 per year to afford the mortgage, real estate tax and maintenance fee payments. Now how many of these jobs are actually available in downtown Miami?

So like sheep in our consumer driven economy, a few jumped in, stories of rags to riches spread, and everyone followed suit. Did you hear the story of the buyer who borrowed $10,000 on his credit card as a down payment, purchased a unit sight unseen, and in a matter of months flipped the contract to the next speculator at a huge profit? Developers supported the practice and charged a 1% ”assignment” fee plus real estate commissions to profit on the flipsters. Sales agents licked their chops earning 5% on the purchase price each time the contract was turned over to the next believer. Developers hired whomever they could to finish the job and slap their buildings together.

At the same time, banks were giving away 100% financing to buyers of high rise condominiums with a 580 credit score. They also allowed up to 6% seller concessions, which would more than cover having to bring any cash to the table. Everyone was betting on appreciation and this huge influx of primary owners and renters moving to downtown. Developers laughed and did not think twice about spending thousands of dollars on weekly lunches at Prime 112.

No one had any skin in the game.

Miami has seen similar booms and busts throughout its history. The terrible hurricane of 1926 that totally decimated Miami Beach, followed by the Great Depression of 1929, completely destroyed our local economy. Many lives were lost, buildings were completely destroyed, and fortunes quickly evaporated. Yesterday, I received an email from E*Trade Financial stating that “At the end of 2008, cash in money markets and bank accounts had reached nearly $9 trillion or 74% of the value of all publicly traded stocks in the U.S.!” Does this ring a bell?

Today we are back to bidding on properties. It’s a seller’s market of bank owned real estate. There is much hype in the market as vulture investors with cash chase foreclosures and are determined to out-maneuver the next bidder. Listing agents require buyers to sign multiple disclosures to relieve them of any responsibility as they are in “multiple offer” situations. Banks say they are lending to buyers of condominiums, and while they may be underwriting many, they are funding very few. First time homebuyers are working hard to obtain a very attractive $8,000 homebuyer tax credit. The National Association of Realtors is claiming that we are ”near the bottom”. This is all feeding even further into the hype and creating more uncertainty.

So where does this leave you, the first time home buyer or investor?

The value of real estate in Miami today has much more value than what it offered as recently as 20 years ago. This is fact and you can ask anyone that has lived here even for the past 10 years. Yes, the Miami real estate market is much like the Wild West at the moment. However, in many instances we are witnessing an over-correction, and here is where you will find the real opportunities.

For further information or to discuss the opportunities in Miami real estate, please send us an email at info@miamiangelproperties.com.

April 23, 2009 by Ross · Leave a Comment

Courvoisier Courts Brickell Key

Filed Under Condos, Hot Picks, Hot Picks - Condos, Listings ·

PRICE : $207,500 FORECLOSURE

Description | This is a fantastic opportunity to purchase a 17th floor condo in the popular Courvoisier Courts on Brickell Key. With beautiful views of the Biscayne Bay and downtown Miami, top-of-the-line amenities, and the exclusivity of Brickell Key, this bank owned property is worth some serious consideration. To view this property, please call us at 305.673.5300 or email info@miamiangelproperties.com.

Address | 701 Brickell Key Blvd, Unit 1708 - map it

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701_brickell_key_unit_1708 (Right click the link and choose “Save link as”)

April 22, 2009 by Julie · Leave a Comment

Brickell Key II Foreclosure

Filed Under Condos, Hot Picks, Hot Picks - Condos, Listings ·

PRICE : $174,900 BANK OWNED

Description | With fantastic bay and pool views, this unit on Brickell Key will not last long. Located directly off of downtown Miami, Brickell Key has for many years been one of the most sought after locations to live in Miami. Don’t miss out on the opportunity. To view this property, please call us at 305.673.5300 or email info@miamiangelproperties.com.

Address | 540 Brickell Key Drive, Unit 825 - map it

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540_brickell_key_drive_unit_825 (Right click the link and choose “Save link as”)

April 22, 2009 by Julie · Leave a Comment

Bay Harbor Islands Foreclosure

Filed Under Condos, Listings ·

PRICE : $177,777 BANK OWNED

Description | With plenty of space inside and surrounded by lush gardens on the outside, this condo will also be a beautiful retreat for the owner. Walking distance to the beach, Bal Harbour Mall and dining, this get-away can become a perfect rental or winter home. To view this property, please call us at 305.673.5300 or email info@miamiangelproperties.com.

Address | 1150 103 St - map it

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1150_103_st_unit_2 (Right click the link and choose “Save link as”)

April 13, 2009 by Julie · Leave a Comment

Club at Brickell Bay Foreclosure

Filed Under Condos, Hot Picks, Hot Picks - Condos, Listings ·

PRICE : $190,000 BANK OWNED

Description | This condo in the sky is offered for a steal at $161 per SF and is located in the desirable Brickell District. It is within walking distance to some of Miami’s newest and hottest restaurants and just minutes from South Beach. To view this property, please call us at 305.673.5300 or email info@miamiangelproperties.com.

Address | 1200 Brickell Bay Drive #4209 - map it

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April 13, 2009 by Julie · Leave a Comment

Brickell Key Foreclosure

Filed Under Condos, Listings ·

PRICE : $124,900 PENDING SALE

Description | This oceanfront condo is located on the prestigious Brickell Key in downtown Miami. This one bedroom unit is priced to sell and won’t last long. Purchase this property with a 25% down payment and your total payments may well be less that renting in the same building, plus consider the benefits of a mortgage interest tax deduction and $8,000 first time home buyer credit as well! Call or email us today to view this property -305.673.5300 or info@miamiangelproperties.com.

Address | 540 Brickell Key Drive, Unit 618 - map it

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540_brickell_key_dr_unit_618 (Right click the link and choose “Save link as”)

April 13, 2009 by Julie · Leave a Comment

Belle Isle Foreclosure

Filed Under Condos, Hot Picks - Condos ·

PRICE : $163,000 BANK OWNED

Description | Located on the exclusive Venetian Isles, this unit is walking distance to parks, spa, restaurants, and Lincoln Road. A large one bedroom, one bathroom unit with laminate wood flooring and a renovated kitchen, this is a fantastic unit at an affordable price. To view this property today, please call 305.673.5300 or email us at info@miamiangelproperties.com.

Address | 5 Island Avenue, Unit 2A - map it

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April 13, 2009 by Julie · Leave a Comment

Coral Villas Foreclosure

Filed Under Homes, Hot Picks, Hot Picks - Homes, Listings ·

PRICE : $549,000 BANK OWNED

Description | This home has been beautifully renovated with spectacular details and a brand new pool. With 5 Bedrooms and 4 Bathrooms, no family is too large. Located in desirable Coral Gables, shopping, dining, and university are minutes away. To view this property please call us at 305.673.5300 or email info@miamiangelproperties.com.

Address | 6435 SW 28 Street - map it

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April 13, 2009 by Julie · Leave a Comment

Washington Place Foreclosure

Filed Under Homes, Listings ·

PRICE : $288,000 BANK OWNED

Description | A classic Miami historic home built in 1938 and located in an up and coming area. Just minutes from South Beach and North Miami Beach, this is a great opportunity to buy a home in Miami.

To view this property please call 305.673.5300 or email info@miamiangelproperties.com.

Address | 622 NE 72 St - map it

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April 13, 2009 by Julie · Leave a Comment

Coral Way Heights Foreclosure

Filed Under Homes, Listings ·

PRICE : $199,900 BANK OWNED

Description | This single family home is located within walking distance of Miracle Mile in Coral Gables, the central shopping destrict with fantastic restaurants and boutiques. With an extra large yard, this home is great for an active family.

This unit is perfect for a first time homebuyer looking for a great location at an affordable price – Call or email us today to view this property -305.673.5300 or info@miamiangelproperties.com.

Address | 5772 SW 24 St- map it