FL Real Estate Market

Discussion in 'Economics' started by SiSePuede!, May 26, 2007.

  1. just21


  2. Damn, people begging to get out at 2003 prices. A 4 year rewind in florida.

    Yup, the bottom is in, really, really it is :D
  3. My neighbor listed at 625 in Feb of 06. She's down to 379

    The house would have easily sold at 575 in 06.
  4. How do you figure?

    "After years of stunning price increases — 25 percent in the West Palm Beach-Boca Raton area, for example, from March 2005 to March 2006 — condo prices have started dropping.

    Condominiums in West Palm Beach and Boca Raton sold for a median price of $211,800 in March, down from $224,600 a year earlier, according to the Florida Association of Realtors. And in Fort Lauderdale, the median price in March was $195,500, down from $202,600 the previous year."

    Look's to me like prices are off a whopping 5%.

    Condo prices are certainly weaker down here than SFH's but they still ain't anywhere near less than outrageous.

    A recently widowed friend of my mom's wanted to sell her condo last month and got $675k after listing it on an index card tacked up in the building's laundry room.

    Another thing, lol. I'm one of those guy's who sees little weakness in DT Miami (Brickell ect). Most of those Miami buildings are priced cheap. I wouldn't exactly call 450k for a 2bd on Biscayne Bay expensive let alone bubblesque. The people who move here aren't coming from Omaha. They're moving from NYC, Toronto, Boston and comparatively SoFla is still a bargain. In fact I'd compare SoFla prices to about that of Chicago (which is pricier than you guy's might think).
  5. jasonjm


    man I'd really be interested in buying an investment condo when the bottom arrives

    but how to time it will be a mystery....

    I guess the bottom will be in when inventory of condos in miami starts dropping significantly? prolly 2009 to 2011?

    On a side note, on a 2nd or investment property, is property tax and interest charges also tax deductable? is there any limit to the amounts?

    good trading all
  6. The problem I have with Condos is the common ownership aspects.

    Whats happens if you close in a condo high rise with say, 1000 units and only maybe 25% of them close?

    Who pays their share of the condo fees??

    When I worked with US Home in New Orleans we had a condo project where an number of people walked on their units. We as a company ended up paying their monthly fees to the association.

    However, US Home ended up going bankrupt a few years later and the payments stopped. I have no idea what ever happened to the homeowers stuck in that failed project and how the common expenses were taken care off.

    Does anyone knows what happens if you close in a condo project and you are the only one left paying?

  7. I've heard in a worse case scenario a condo owner can have liability below zero. In a co-op for sure.

    There's about 1,000,000 units of multi-family housing in South Florida. Someone told me there's 350 hi-rises on each side of Collins and then A1A between Miami Beach and Boca.

    The supply is seemingly unlimited.

    Compared to rents resale values are outrageous. One can rent a condo for $1500 a month that would sell for $300k.

    South Florida uniquely attracts a condo demographic. Older people who're tired of keeping a SFH, New Yorker's who've never lived in a SFH, and wealthy South American's-many of them from those hi-rises in Sao Paulo- who're fleeing the scary ideology of S.A.'s new clique of Marxist leaders.

    Throw in the folks who merely winter here, Europeans and Canadians spending cheap dollars and those who worry about the fortitude of a house in a Cat4 (my SFH's hurricane insurance this year is 9k) and you have a booming condo market.

    Also no state income or VAT tax. Wealthy New Yorker's and refugee's from Taxachusetts can almost subsidize a condo down here with their tax savings if they declare Florida their legal residence.

    So it's iffy. IMO, prices are often ridiculous given supply but supply seems to find buyers. I'd say a solid 25% break is coming but at the end of the day that just fills in those 03-04 prices.

  8. Yes. Property taxes, interest, and about 3.63% of the value of the structure every year. The tax advantage is really good.

  9. jim c

    jim c

    Pabst, What is your take on the Coconut Grove area? I was just down there last weekend and sorta fell in love w/the area. I was amazed at the highrise cranes. I think my wife counted like 16 or something on the Miami skyline. Smartmoney, what do your mean by the 3.63 % of the structure every year? I know you can deduct interest and property taxes not to exceed 1 mil with all properties combined. Thx guys. jim
    #10     May 30, 2007