INSIDE SOBE REAL ESTATE JOURNAL
Get the latest scoop on the area including inside tips and advice from our professionals.
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Miami’s Preliminary 2009 Tax Roll
July 3, 2009
This week the Miami Dade County Property Appraiser published the 2009 Preliminary Tax Roll. So now it’s official, the countywide taxable value of existing properties has declined by 13 percent, to $222.1 billion. With an adjustment of $8.4 billion in new construction value, this represents a net decline of $23.4 billion or 9.5 percent over the the previous year’s taxable value.
For those of us in Miami’s real estate circles, this announcement is very disappointing. Miami’s Property Appraiser, Pedro J. Garcia, was appointed to office just a few months ago. …
MAP is now Mobile
July 1, 2009
Based on worldwide numbers, mobile devices outnumber computers 20 to 1. While not all mobile phones have the ability to access the internet, the turnover of mobile devices is significantly higher than that of computers.
With so many technophiles claiming that mobile applications today are similar to where the internet was at the beginning of the century, we decided to get with the program and launch MAP Mobile.
Here is a list of the features of the MAP Mobile site:
The site will determine if you a using a mobile browser and then serve the content based on that browser.
The site has been tested and functions …
Miami’s Shadow Inventory
June 25, 2009
Today’s headline in the local Miami business journal read “Judge grapples with her discovery of 15,000 unserved foreclosure cases.” I also read an article on CNBC.com titled “Rebound In Housing Hampered By Slowdown in Short Sales.” So what is the story here?
According to public records, in Miami-Dade County there were 26,731 foreclosures filed in 2007, another 56,656 foreclosures were filed in 2008, and an additional 29,833 foreclosures have been filed through May 2009. That’s over 110,000 foreclosures filed within the past two-and-a-half years! We have a HUGE shadow inventory of foreclosed properties out there that very few people in the …
Beached in Miami Shores
June 18, 2009
A few months ago, I posted a blog titled Miami’s Boom to Bust. Since writing that post, I have walked through hundreds of distressed properties throughout Miami Beach and the surrounding areas. For a number of reasons, my recent experience of working on a property in Miami Shores is the epitome of that boom to bust cycle in Miami.
This house sits on a corner lot in a prime location in the popular suburb of Miami Shores. The property consists of a total living area of 1,658 square feet with 3 bedrooms, 2 bathrooms, a renovated kitchen and bathrooms, new roof, and features a large swimming …
Foreign Investors Q&A
June 15, 2009
There are so many questions that a real estate professional has to face when dealing with foreign investors. The following guide addresses some of the most common legal and tax questions.
Q - What should foreign investors take into account prior to signing a real estate purchase contract?
A - One should consider the form in which title or ownership is to be held so as to take advantage of potential U.S. estate tax and gift savings. On the one hand, we have individual long-term capital gains rates, which are currently at 15 percent. On the other hand, the purchase may be structured so that the foreign investor takes title to U.S. property through one or more entities …
Flippin’ Short Sales
June 12, 2009
I will never forget reading a sign that was posted on the Venetian Causeway a couple of years ago. The pitch was something along these lines - “Do You Have Excellent Credit? Need Fast Cash? Help Us Buy Real Estate. No Risk!”
Unfortunately, Miami continues to suffer from real estate fraud, and flipping a short sale has been the latest craze for several months now. Whether Medicare fraud, mortgage fraud, insurance fraud, it’s all here. Then months ago, one of my agents was personally involved in flipping a short sale deal, and after catching wind of the scheme, I had to …
Quest In Sunny Isles Beach
June 11, 2009
37th floor, Trump Tower I
Over the past two weeks I have spent considerable time walking several luxury condominium buildings in Sunny Isles Beach. The objective was to find a 2,000 square foot condo in a luxury “established” building with minimal distress, a flow through floor plan, turnkey unit, and with awesome ocean and city views. Sounds easy enough, right? Now try and accomplish that for under $350 per square foot.
So how does one determine an established building? It’s not easy, but a good start is to look at the pipeline of distressed properties in the building, including pre-foreclosures, bank owned and those scheduled for auction. With …
Tips for Foreign Buyers
June 9, 2009
In Miami Beach, we generally deal with international buyers and foreign clients that would like to own a second home or investment property in our beautiful city. Therefore, it is common for our clients to ask us for information on immigration and visa related matters as a potential foreign owner of Miami real estate.
We must preface this comment by stating that we are not immigration specialists, attorneys nor advisers on such matters, but we did conduct some research and were pleased to determine that there may be one realistic option for real estate investors with the financial ability to obtain U.S. residency.
The program is called the Regional Center EB-5 Program, or the “investment visa” …
Miami Real Estate Monthly - Mar 2009
June 9, 2009
Summary - March 2009
For the month of March 2009 vs. February 2009, we experienced an 14% increase in the number of closed sales from a total of 206 to 235 closed sales. The inventory of properties for sale increased marginally by 10% over the previous month. This is the third month in a row that we have seen an increase in the overall number of closed sales, and we are up an impressive 35% in the past two months alone.
While the average sale price of single family residences in Miami Beach with a price under $1 million continues to decline from $653,282 in January 2009 to $513,800 in March 2009, the average closed …
Miami Real Estate Monthly - Feb 2009
June 5, 2009
Summary - February 2009
For the month of February 2009 vs. January 2009, we experienced an 18% increase in the number of closed sales, and at the same time, the supply of properties for sale decreased by 19% over December 2008. This increase in closed sales was mostly due to the pent up demand for distressed properties and foreclosures. The percentage of overall sales that are either bank owned properties or short sales remains high at over 50% of total sales.
Many of our clients are curious to learn how many closed sales are cash buyers versus those obtaining purchase mortgage financing. According to …
Lincoln Road’s 50th Anniversary
June 2, 2009
Next year in 2010, Lincoln Road, considered by residents and visitors to be the heart of South Beach, will celebrate its fiftieth anniversary. This outdoor pedestrian mall is my haven and my daily ten minute walk to the office full of delight, sounds, smells, colors, people, and always an experience.
As a resident of South Beach for almost a decade, I am still constantly enamored by the vitality and life on Lincoln Road. Yes, we have seen several changes over the years, some for the better and some towards the mainstream …
Foreign Interest in Miami Increases
June 2, 2009
Although there is no official data available, the estimated percentage of second and investment properties owned by foreigners in Miami is as high as thirty percent. We attract investors and second home owners from all over the world, with our primary feeder markets coming from flight capital leaving Latin and Central America. This is one of the reasons that we have a somewhat unique residential market, and what is now helping us turn over so many foreclosed properties.
We even have certain areas where foreign investors look to purchase residential property. In South …
World’s Prime Real Estate
May 25, 2009
Over the past 20 years, I have been fortunate enough to have traveled far and wide and visit many countries and major cities. Recently, I read the Wealth World Report 2009 compiled by Knight Frank, which presented The Global Top Ten of residential real estate.
Not to say that I have personal knowledge of real estate in many major financial centers in the world, but this survey revealed some incredible residential real estate numbers in comparison to the Miami market. Miami clearly did not rank in the Top Ten in terms of price per square foot, not even close. However, the survey did reveal that you will pay through the teeth to live in many of the globe’s …
10 Condo Questions To Ask
May 12, 2009
Before you buy in a Miami condo, it is important to contact the condo board or management company and ask several questions. During this process you will learn how responsive and organized the management or board members are.
Here is a list of several important considerations and facts you need to obtain before making your investment:
What percentage of the units are owner-occupied? In general, the higher the percentage of owner-occupied units, the more marketable the units will be for resale and the easier it will be to obtain financing.
What bylaws and restrictions govern the property? What rental restrictions are in place? You may determine, for instance, that you cannot rent out the property …
Miami Beach Foreclosure Fantasy
May 11, 2009
Getting all caught up in this real estate madness of chasing the next “best” deal to come on the market, certainly has its downsides and pitfalls. This obsession to find the perfect view, size, location, price, and all in a quality and not a distressed building, is at most just a real estate fantasy, a made for “Property Virgin” TV episode.
Here are some of the most common misperceptions that we commonly hear when “foreclosure hunters” visit our Miami Beach market:
Cash is King; just because you can pay in …
Rent is Paid, Now What?
May 4, 2009
There are many renters in the Miami area that are paying their rent each month only to find a Notice of Foreclosure posted on their front door. According to RealtyTrac, so far this year thirty percent (30%) of all homes that received foreclosure notices where occupied by someone other than the owner. This is an unfortunate consequence of the struggling housing market as many landlords collect rent and do not pay their mortgage. In Miami, we have even witnessed instances where unscrupulous individuals rent out property that they do not even own to unsuspecting …
Miami’s Boom to Bust
April 23, 2009
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 …
Miami in Review - Q1 2009
April 13, 2009
For many of us, reflecting on the state of the Miami real estate market for the first quarter of 2009 versus the first quarter of 2008, is much like this monkey trying to make sense of his reflection in the camera lens. While we appear to have made significant progress as properties are selling and inventory is shrinking, just what is the reality and where is the market heading?
Single Family Residences
For the first quarter of 2008, a total of 1,149 single family residences were sold with a median sale price of $316,500, or $173 per square …
Miami Distressed Sales - Update
April 9, 2009
During the most recent three month period from December 2008 through February 2009, we experienced quite a significant jump in the number of closed sales in Miami Dade County. Although the above chart does not show the results for the same period during the previous year, our total unit sales increased by 1,722 units or 43 percent over the same period! So what is really driving the increase in activity?
If you pay attention to the statistics in this table, what should immediately jump out at you is that two-thirds, or 66.2 percent, of the …
Bottom Fishing
April 3, 2009
The Financial Dictionary defines a bottom fisher as “an investor seeking stocks that have fallen at or near their bottom, which he or she believes will trend up in the future.” I think that we as a society are fixated with the idea of finding the floor or bottom in real estate. It’s like an anti-depressant for some, one’s Prozac you might say. Once the local or national media says that we have hit bottom, you immediately feel good about making a decision.
What we are able to recognize, however, are great deals based …
Miami Real Estate Monthly - Jan 2009
April 2, 2009
Summary - January 2009
For the month of January 2009 vs. December 2008, we experienced an overall 20% decrease in the number of closed sales in Miami Dade County. This decrease in overall sales was most likely due to a typical seasonal dip that we experience in January each year. In spite of the twenty percent decrease, the actual total number of distressed sales, including bank owned properties or short sale, remained the same.
Just as we have similarly experienced in recent months, the percentage of overall sales that are either bank owned property or short sales, remains very high at 66.2% or two-thirds of total sales. Our analysis of the past three months reveals …
The Return Of Bidding Wars?
March 10, 2009
I recognize that some of you may find this hard to swallow, but recently we have experienced a few scenarios where there have been multiple buyers bidding on a bank owned property. This is certainly not occurring as often as it was during the boom years, however, it is taking place at certain price points and in areas and buildings of high demand.
What is also encouraging are the many full price offers that closed in Miami Beach and downtown Miami in the past 60 days. These properties can come and go before you even source the deal for you client, so you have …
The Killer Real Estate Tax Pill
February 27, 2009
Property taxes provide the bulk of local government revenues in Florida. They account for a large portion of the revenue needed to provide fire protection, education, law enforcement and other services. Unfortunately, this tax system does not make sense in times of economic difficulty and the rapid erosion of real estate values.
While the owners of Florida real estate are looking to lower their property tax burdens, cut monthly expenses and increase cash flow, the state and local governments are facing huge budget deficits and are resistant to simultaneously significantly lower tax assessments. Of course, this could not be happening fast enough for all of us.
Why should an investor who is willing …
Lincoln Road Mall - 1111 Project
February 19, 2009
One of the many great pleasures available to the residents and visitors to the city of Miami Beach, is enjoying the many shops, cafes, restaurants, galleries and theatres that make up the Lincoln Road Mall. Carl Fisher, the founder and developer of Miami Beach, originally named the street after his favorite president.
Following a $600,000 transformation in 1960, this stretch of Lincoln Road became the first pedestrian mall in America. This nine-block open air pedestrian mall extends from Washington Avenue west to Alton Road. The block between Lenox Avenue and …
December’s Results - Miami
February 13, 2009
It’s no secret on the street, and even in the national press, that the sales of existing homes has picked up around the country. In Miami, this has definitely been the case in the past few months. What has led to this local trend is directly related to the increase in the number of sales of bank-owned and pre-foreclosure [short sale] properties.
With such a large number of inquiries from clients and prospects, we have decided to start publishing the detailed lists of these distressed condominium sales in …
