Article
Miami Florida Condos---Eye on the Market
It was during the winters of 2006 that Florida condos market reached its peak. However, since then condo prices have fallen by half. And at the end of July, the investors are convinced that the market has reached the bottom. At present Miami, Florida condos market has a good supply of condos for sale. There is wide range of variety too. And all these accounted for the triggering off of a new trend; real estate investors with good supply of cash are buying up Florida condos in bulk. As for example, consider the case of Tom D. Sullivan and Jorge Arevalo. These two big time investors grabbed 51 units in an oceanfront, condo-hotel property called One BAL Harbour. The developer, WCI Communities--- which is recuperating under bankruptcy protection--- let these units go for just $14.6 million
Let's take a quick glance at Miami, Florida condos market. According to some estimation, at the end of June, the developers were holding about 9,400 condo units, while financial institutions owned total 5,000 homes including condo units. Now in a desperate bid to dispose off these properties, the developers as well as banks are resorting to bulk auctioning. The net result is: Miami, Florida condos are selling off in bulk. Another real estate investor Ed Pascoe, an antiques dealer, hit the jackpot last February in one of these auctions. His picks included a building's 56 units out of 135. And the pocket pinch for such a big buy? Just $4 million!
And this was just half of the story…he patiently waited for few more months and as the year hit its 7th month, Pascoe started selling off the units for $99,000 to $299,000. The units that are not being sold are being rented for $1,000 per month.
Now the existing owners of Florida condos are welcoming this trend for the obvious reasons. The new condo owners are blessing to the cash-crunched condo home-owners association. With so many empty units in the building, HOAs have been struggling to meet the maintenance expenditures of the property. Now buildings are filled up by new owners, the Associations are looking forward to getting fees in time.
Now who are behind these bulk purchases of Miami, Florida condos? According to the Miami based real estate investment firms, this trend is being largely fuelled by the groups of private investors.
The new age investors are different from the investors of the boom years. During the boom years, the real estate investors resorted to unreasonable borrowing for buying overpriced Florida condos; today's investors are using cash for acquiring the units in bulk. While the previous investors went on a buying spree with the sole intention of flipping the units, present investors are taking a more Patience and strategic approach. They have the clear plan of holding the Florida condos units till market starts recovering.
The banks are also going to benefit from the trend; if investors keep on buying the low-priced Florida condos in bulk, it will be easier for the banks to get rid off the foreclosure units soon.
To wrap it up all: the Florida condos are in their way to set a new trend and that can be an eye opener for the condo market in the neighboring states. It is to be seen now whether the neighboring condo markets go by the Florida condos market trend or brace a more conservative approach through the upcoming days.
- Go back
Sign up now to learn about new condo developments and investment opportunities.
