There are many consumers not yet convinced that things are “turning around” in the preconstruction market in the Sunny Isles and Miami Beach area. That perspective is fairly easy to understand if you see that people are basing such an opinion on the older headlines and business news, but if you look a bit closer at what is actually happening in the market…well, you’d change your mind about the issue.

For instance, if you were to check out the newest project from developer Gil Dezer you would see a huge amount of interest and activity, and none of it could be described as a reflection of the so-called “modern market”. That is because Dezer is currently working on the newest luxury oceanfront pre-construction project Porsche Tower in Sunny Isles Beach, and though it is not going to be ready for residents until 2016, more than 15 of the $3.9 million-plus homes have already been reserved.

While the $1,000 per square foot price tag on these homes may not be feasible for all interested buyers, there is much more to find in the Miami and Sunny Isles condo market. For example, the Related Group (which is most often associated with massive condominium structures scattered throughout Miami and its environs) is currently working on the MyBrickell facility in the heart of city, usually called the downtown region. This is a neighborhood that was once believed to be a “no go” in terms of residential properties but which has become a dynamic market with the many “bargain shoppers” of the world.

Thus, the $350 per square foot price tag on the 192 units has led to a near “sell out” of the entire structure long before the project has even broken ground. As of early 2012, it had reservations for 90 percent of the homes in the building.
Is Marketing to Blame?

Many might point to these diverse projects and say that it is probably marketing that is leading to so much interest, but the simple fact of the matter is that many of the top selling projects have almost zero marketing, and few even have viable websites or established sales offices.

What is behind the success? If you explore many of the top selling preconstruction projects it would quickly become clear that measured sales are the real engine behind the incredible numbers. Rather than building in the thousands, most of the projects are doing pre-sales on extremely limited numbers of homes.

When this is partnered with the fact that many international buyers are exploring their chances for a Miami property at a relatively bargain-basement price (when compared to the booming years prior to 2008), you get a wonderful result. For example, Canadian buyers who had long avoided the $500 per square foot price tags on the smallest and least opulent units are now able to dedicate less than $400 per square foot for a much more upscale home. Sellers are not boosting prices in response to these sales, however, and that is what is keeping the market viable and vibrant.

We should also offer a bit of additional detail about the strength of this proof that the preconstruction market is more than just back on track. For instance, the luxury homes offered by Gil Dezer come with a mandatory $100k escrow deposit just to take a meeting with the builders! Twenty-seven interested parties have put down the cash to sit down and discuss the options, and as already mentioned, fifteen of the meetings have resulted in fifteen committed buyers.

Additionally, these buyers are asked to put down ten percent of the purchase price of the home that won’t be available for a few more years, plus another ten percent to enter into the contract AND a further ten percent when the actual construction starts. Do they all agree to these terms? Yes, and none of the escrow deposits have ever had to be returned because the buyers are ready to commit to the properties.

The same applies to the lower priced homes being made available by Related Group. They are actually requiring that eighty percent of the purchase price be put down until the closing on the home, at which time the final twenty percent is required too.

There are other groups, such as the Brickell House group, that requires ten percent for a reservation on one of its newest units (a 374 unit project due to begin in the summer of 2012) and a full seventy percent of the cost to be paid during construction; or the Apogee Beach facility that asks for a 40% deposit for one of its 48 units.

Clearly, there has been a sort of metamorphosis in the preconstruction model. Rather than “monster” projects of thousands of homes at one time, with top tier pricing, the market has adjusted to fit the current global financial conditions.

This means that it is possible to find a great home in the Miami area that is newly built, totally modern in terms of amenities (such as the Porsche Design’s automated parking garages), and yet available at a cost that was once unheard of. The newest facet to this model, however, is that it can be a very measurable preconstruction period involved in the deal.

This measured sales approach is working well for buyers too because it does allow them to get a good price (currently averaging at less than $400 per square foot but going all of the way up to $1000 per square foot too) and to be able to use some payment terms that can work well with almost any budget. Ten percent to reserve a condominium about to break ground is a nice deal, and the opportunity to spread out the payments over the next few years is also beneficial. Many buyers will have to pay from twenty to forty percent of the entire price at closing, and this is why so many are rushing into this market before all of the available homes are gone.

If you have been worriedly monitoring the economy, employment and housing data, you probably felt a bit of pleasure when you read January housing and sales results. Why? Though they decreased slightly from December of 2011, they were well above the results from a year earlier.

The United States Census Bureau indicated that around 22k new homes were sold in January 2012, and this means that around 3.5 percent growth has occurred since the same period last year. This is even more exciting when you realize that this is the highest level of sales since April 2010; but the figures for this period were heavily affected by the now-ended homebuyer tax credit. So, people are buying more homes than ever, even without the tax incentives!

What does this mean for those interested in a home in Miami?

Well…for those interested in bargain basement prices it means that it is the last chance to buy. Prices in the Miami condominium market increased by 36% from the previous year, and this is not because more luxurious homes are being made available but because there is so much demand for properties.

In fact, right now there is an actual record low in terms of inventories available. Consider that the “boom” period from 2005 to 2009 saw the construction of 10,001 new condos in the Miami Beach area, and that currently only 1,020 of them remain available. That means that only ten percent of the new homes in Miami Beach are up for sale.

This represents a serious “supply versus demand” crisis, especially when you also consider that a huge number of international buyers are very actively seeking properties in the Miami region. In fact, things have gotten to be so competitive that Miami home sales priced at over one million dollars for a single property are more common than ever.

A few of the most popular brokerages announced that they have sold more homes and properties with “seven figure” price tags than they did in the previous calendar year. This clearly indicates that the prices in the Miami market have gone as low as they can and that things are beginning to turn around. This is going to continue into the future because of several major issues.

For instance, the American economy has not yet recovered, the Chavez Effect is driving Venezuelan investment like never before, Canadian buyers are enjoying excellent rates on their purchases, and new buildings are being opened for reservation for the coming years as well.

When it comes to luxury oceanfront condo development

“Chateau Group� is a seasoned, veteran developer. Their portfolio includes several prestigious buildings in Buenos Aires and Punta del
Este, as well as a growing land portfolio in South Florida, but now the plan is to build a new ultra-luxury Chateau Beach Residences condominium tower in heart of Sunny Isles Beach and 174th Street, next to Sampson Park. The proposed 33-story Chateau Beach Residences will house 85 private residences ranging in size from 1,500 sq. ft. to more than 9,000 sq. ft., priced between $750 to $800 per sq. ft..

All residences of the Chateau Beach Condo

will offer floor-to-ceiling glass, most amazing panoramic ocean and city views. Some residences will even have two stories with very deep terraces and a private swimming pool. No matter which unit you choose, you will enjoy a unique lifestyle, world-class service and amenities. Some of the amenities are oceanfront fitness center with the latest equipment machines for cardio, weights and pilates. There’s also a spa with a relaxation terrace overlooking the ocean. The wine lounge offers private wine lockers for residences. Additionally, there’s a cigar bar offering humidors boxes and a home theater. The entire property offers full concierge services.

If you’re ready to reserve your unit at the Chateau Beach, the pre-sale is in full progress right now, with already over 25 deposits collected. The expected construction will begin in September 2012, and will take about 2 years.

For additional information and/or to submit your contract, please contact Lana Bell at 954-336-1016 or send an email to info@SunnyRealty.com.

If we can take any lessons from the recent past, they would have to include the simple fact that you cannot trust everyone. Look at the many “Ponzi” schemes that have been shown to have been a major part of the trouble in the real estate markets and the financial industries.

This means that anyone considering an investment of any kind, whether it is a classic stock market investment or the acquisition of some real estate properties, should be sure that he or she chooses business partners wisely.

Let’s consider a recent case to emerge from Florida headlines: the story of broker George Elia. In February of 2012, Elia came under scrutiny due to some concerns that the real estate investments he had created were just another Ponzi scheme. What had happened was that one of the (for now alleged) victims of the scheme filed a lawsuit in Broward County. The claimant indicated that the International Consultants and Investment Group headed up by Elia was not yielding the guaranteed returns of twenty percent per year.

What is claimed is that distributions for the investment were delayed in 2011, and that any attempts to withdraw earnings from the fund were prevented by the manager, George Elia. During this time it was discovered that the real estate broker was withdrawing a few million dollars from the firm and shifting it into the hands of other companies, but these two were under the leadership of Elia (or his wife). There is also evidence that nearly one-quarter of a million dollars was withdrawn in the form of cash at this same time.

Though the FBI is now investigating the case, it serves as a good illustration of the need to conduct the essential “due diligence” that would uncover any discrepancies in the way the fund would be handled. For example, it is absolutely mandatory to ask for annual reports and to “shop around” when thinking of utilizing any Miami real estate investments. Though any real estate in the Broward County area is going to be viable and lucrative (after all, this is a region in which prices and sales have grown by upwards of 36% in the past year), it is not necessarily a reflection of the potential of the investments made. Explore the history of the management, the background of the funds that are being used to grow wealth, and ask around to find out if acquaintances have heard anything about the firm. You will be glad that you spent this time checking out the details.

There are some interesting trends developing in the condominium markets in and around Miami. For example, there has been a surge in growth throughout the entire “preconstruction” markets of Miami and Brickell. There has also been news of increases in the average purchase prices – with the figure hitting over $1 million in early 2012. There is also a lot of talk about the shrinking pool of available properties, with somewhere in the area of fourteen percent or less of the “boom” era condominiums remaining available.

When you roll all of these facts into the additional issue of increasing interest from international buyers, you can see that there is certainly a pending or developing shortage of homes for sale in Miami area. This is one of the primary reasons that a sudden amount of interest has developed just over the county lines in the areas of Hollywood and Hallandale Beach.

It is a bit amusing to long-time real estate professionals in the area because there has been a historic difficulty in getting buyers to consider the “next county”, but with the shrinking market, the anticipation of rising prices, and the competition for any available properties, this “thinking outside of the box” has begun in earnest.

Today, it is possible to find many different projects under construction in places such as Broward County, which was once not viewed as the same general region as Miami. In fact, a recent “New York Post” article pointed out that Related ISG is in the midst of developing its Apogee Beach Condo project in the Hollywood Florida area, and that most of the units had already sold.

The bulk of buyers for these units tend to be international buyers, particularly South American citizens who want a home in the region and who are recognizing the fabulous deals currently available. There is still interest from Canadian buyers as well as retirees from the United States, but the demographics point to an entirely new generation or group of buyers showing interest in the area.

As long as the prices remain measured and controlled, which is something that builders have learned is the key to their ongoing success in the current financial conditions, the buyers should continue to pour in. The comparisons are hard to ignore when you see that many Latin and South American properties of similar quality and size are selling at $1,000 per square foot, while the same homes are coming in at an average of $400 in the Hallandale and Hollywood Florida real estate areas.

When talking about “booms” in any sort of market or industry, we are usually trying to illustrate some sort of massive growth in production or sales. When we discuss Fort Lauderdale real estate or Miami Beach real estate we are talking about condominium projects constructed between 1999 and 2009.

After that period, there was a downturn in the economy (and particularly in the housing industry) and much of the purchasing and construction slowed substantially. Things have started to rapidly change, however, and recent data indicates some very surprising results. For example, of the 5,135 condos constructed in Ft. Lauderdale during the boom years, only roughly 140 remain available as of February 2012. This represents only 2.7% of all of the units built.

This means that Ft. Lauderdale has surpassed the Miami market, which is most often viewed as the “hottest” in terms of sales.
Currently, the Miami and Brickell areas have around ten to fifteen percent of their “boom” units unsold – which also seems a bit unprecedented when thinking of the modern economic conditions.

What is behind this? In all areas, there is a tremendous amount of interest from Canadian and Latin American buyers. Their housing prices run at much larger figures than those of the Miami area, and without all of the benefits that come from a property in a dynamic region. Consider that condominiums in Ft. Lauderdale, Miami or Brickell can make ideal retirement, vacation or rental properties.

Thus, international buyers used to high “price per square foot” figures or substantial rental amounts are more than happy to get into the current Miami area markets. Consider that the current average price per square foot for a Miami condominium (whether pre-existing or in preconstruction) is going to be around $400 per square foot. This is a huge difference between the $1,000 per square foot being demanded in locations such as Rio de Janeiro, Bogota, Buenos Aires or Toronto.

A recent article in the “New York Post” pointed out that it is the top of the line condominiums selling at the $1,000 per square foot prices and that the traditionally upscale projects are now at this remarkable $400 average. This is a tremendous value to international buyers who are looking for a new home, a second home, or some fabulous income properties that are also seeing increasing rates. For example, rentals have risen by seven percent in the last year alone.

This all speaks well for the condominium market throughout this entire region.

The latest report on downtown Miami’s condo market

shows almost all of the units built during the housing boom are full. That’s thanks to renters, who would be priced out if not for all of the cash purchase deals.

Here is the latest article by DOUGLAS HANKS from Miami Herald. You can read it below or click the link to read it at Miami Herald site: http://www.miamiherald.com/2012/03/02/2683428/no-vacancy-in-miamis-condo-canyon.html

Downtown Miami condo

canyon is almost full, thanks largely to a steady flow of cash from Latin America.

The latest survey of Miami downtown high-rises built during the housing boom shows more than 90 percent of the condos are occupied. After Latin American investors snapped up condos at distressed prices amid a wave of bankrupt high-rises, they turned to local renters to fill them. Four years into the buying spree, vacant units have almost disappeared.

“I always encourage my clients to bring their checkbook for the first month’s rent,’’ said an agent with downtown Realty who specializes in rental units. “There is a lot more demand than there is supply.�

The study by Miami’s Downtown Development Authority found 93 percent of the nearly 23,000 condominiums built in downtown Miami after 2002 are occupied. Of that, only about a third are occupied by full-time by owners, with the majority serving as rental apartments.

Behind the statistics are a fundamental shift in real estate math allowing for downtown Miami to become one of South Florida’s hottest rental markets.

The boom prices, where top condos were selling for $600 or more a square foot, would require rents too pricey for all but the most affluent residents. Instead, investors who bought then hoped to flip their units for even more money to future buyers.

Even at the sharply discounted $200-a-foot purchase prices in the depths of the housing bust, many of the condos would be too expensive to generate enough rent to cover association fees and mortgages on the units. But with the vast majority of investors paying cash for their downtown condos, they require far less rental revenue each month to make the deals “pencil out� as reasonable investments.

“Traditional financing wouldn’t have made these rentals viable,’’ said Werley, who conducted the study in a partnership with Goodkin Consulting. “If you had a mortgage on a half-million-dollar condo, the monthly costs would be way out of line with any reasonable rent you could generate.�

/Not all condos being rented in Miami’s urban core depend on cash investments, and the DDA study only covers units built during the last decade. Other indicators point to a downtown that is an increasingly popular place to be. The bust didn’t stop a wave of new retail complexes from opening, including the Midtown Miami mall on northern side of downtown and the Mary Brickell Village mall to the south. Restaurant taxes have surged 77 percent within Miami city limits since 2005 compared to a 35 percent gain countywide.

Tyler Tejeda commutes almost an hour each way in order to spend weekends in Miami. The 24-year-old recruiter for a Fort Lauderdale firm moved into a Brickell Avenue apartment in August, despite having a job nearly an hour away. “I could move to Fort Lauderdale if I really wanted to,’’ Tejeda said. “But I’d rather be in Brickell on the weekends. It bothers me less to have to commute on weekdays than have to come down to Miami on the weekends.�

Paul Riemer could afford to buy a condo of his own, but the young insurance executive instead pays upwards of $2,000 a month for a one-bedroom apartment at the Icon Brickell, a posh condo complex on Brickell Avenue.

“I’m not ready to make a big purchase yet,’’ the 23-year-old said. He cites a gap in what he can afford to rent and what he can afford to buy. Why move out of a luxury apartment to purchase his own condo somewhere else with a large mortgage?

“I have the money to comfortably rent,’’ Riemer said. “I don’t know if I’d be able to comfortably buy.�

The 93 percent occupancy rate in the latest DDA condo survey identifies little more than 1,000 vacants units in a condo market that came to symbolize the excess of Florida real estate. And it marks a big improvement over the 65 percent occupancy rate in the first DDA survey taken four years ago — a number that at the time seemed surprisingly high.

That was in 2008, at a time when South Florida real estate sales were just beginning to show a rebound. But prices were heading the other way, accelerating into a decline that has so far last five years, according to the Case-Shiller housing index. At the time, the DDA wasn’t sure it wanted to know how many people were living downtown.

“We were hearing from everybody driving down the road: Hey the condos are empty,’’ said DDA director Alyce Robertson. “You never know what the numbers are going to say. What if they really were all empty?�

With a hot rental market, downtown Miami has become a more expensive place to live. Mark McCann, owner of the Miami Apartment Locators brokerage, said a one-bedroom apartment in the downtown area went for about $1,300 a month several years ago. “Now that’s almost impossible,’’ he said. “Now it’s closer to $1,500 or $1,600. There is a lot of competition for the units. There was more supply before the recession.�

The rental market has helped usher in a new crop of condo projects downtown, a revival many thought might have to wait at least a decade after the big crash. Harvey Hernandez runs the company selling units in Brickell House, a 46-story building planned for 1300 Brickell Bay Drive. His sales staff runs weekly reports on the rental market — statistics that can help close a sale for a $400-per-square-foot unit at Brickell House.

“The rental market influences the buyer a lot. It is a great option,’’ Hernandez said. Miami “has about half the inventory available for rent we had four months ago. And four months ago, it was at least half of what it was four months prior.�

Click here to learn more about Miami real estate

When you think of the term “foreclosure”, what comes to mind? Do you think a long, drawn out process of purchasing a home for an unrealistic low price at a risk? If you have no factual knowledge about foreclosures, chances are that you’ve gathered some incorrect information. A foreclosure is a legal process that occurs when a lender is trying to recover the amount of money owed on a property that the borrower has stopped making payments. Although this may sound simple enough, there are many myths about foreclosures that you should be aware of.

• A foreclosed home will need a lot work- Due to the amount of horror stories in circulation about foreclosed homes being demolished by the previous angry borrowers, there is a wide misconception that these homes will need a large renovation. In reality, in most cases a foreclosed home will only need minimal cosmetic work done such as new carpet, paint, or fixtures.

• A foreclosed home cannot get an inspection before purchased- This statement only pertains to county auction foreclosures. Most bank-owned properties sell the foreclosures “as is” and want to avoid liability in the future so an inspection is often encouraged.

• Most foreclosures are due to homeowners walking away from the mortgage- Many people think that homeowners just walk away from their properties when they cannot pay the mortgage. A very small percentage of homeowners voluntarily walk out of the properties in reality.

• Buying a foreclosure is risky- This statement is only true when buying a foreclosed home at a county auction. There is a potential risk of the home not being up to par because of the lack of an inspection and the new owner taking on the former owner’s liens. However, purchasing a bank owned foreclosure is no more risky than purchasing any other properties for sale.

• Foreclosures are sell at extreme discounts- There are many misinformed potential buyers that believe that they will purchase a foreclosure at more than half off the value of a similar non foreclosed home. Although many foreclosures are priced at a discount, there are more closely priced to similar homes on the market that aren’t in foreclosure.

• You must pay in cash for a foreclosure- This statement is often true only when it comes to purchasing at a county auction. When purchasing a bank owned foreclosure, buyers are able to obtain financing as if they were buying any other home. In few cases, the bank will prefer cash buyers if they believe that it will be hard for the buyer to obtain financing due to the condition of the house.

This is a guest blog post from Kevin Hughes. About The Author: Kevin Hughes, a Boise real estate agent, assists buyers and sellers throughout Idaho. He is dedicated to helping people find Boise homes, Eagle homes, Meridian homes, and Nampa homes.

When you hear the name Trump Royale

it’s almost certain that you think of luxury, and that’s certainly the case with Trump Royal. This condominium complex can offer a life of prestige and comfort, but may people have put buying a new home on hold for the last few years. After the mortgage crisis hit, no one wanted to take a chance on rejection. The sales for homes all over the country slumped, including locations where many people want to live, like Miami Beach real estate. This has forced the market into a recession, where prices are much lower than they’ve been for several years. For buyers who were serious about finding a new home, this situation was beneficial, but it’s certainly not the norm, and it won’t last forever.

Higher Sales in 2011

What you can see from the sales at Trump Royal in 2011 is that these homes are starting to sell at a much faster rate. With twelve sales closed last year, the numbers are much higher than they’ve been in recent times. This is the first sign that the recession is coming to a close, but it’s not over yet. The asking prices are lower than they’ve ever been, and that means that the sale prices are even lower. That gap between the two is growing smaller, meaning you could miss out on your chance to get a great deal on a condo unit in Trump Royal. You don’t have to worry about missing that chance if you take the first step today.

Luxury for the Money

What you receive when you purchase one of the residences in Trump Royal is luxury like you wouldn’t believe. The prices for these units are lower than some of the other luxury communities in the area, but that doesn’t mean you’ll be missing out on the comfort and amenities. These units can go from $500,000 to well over $2,000,000, depending on the size and layout of the residence. There are beautiful designer touches in each home, gourmet kitchens, amazing bathrooms, and views of the ocean from nearly every window and terrace. It’s certainly the life you’ve been dreaming of, and it’s just a bit more affordable now than it will be in the near future.

Make Your Purchase Now

Signs showing that the recession is coming to an end also mean that the buyers’ market will end. That means it’s the right time to buy a new home, whether for necessity or luxury, and Trump Royal can help you with both. You can take advantage of the lower prices that are still lingering if you act right away.

Our experienced agents are ready and waiting to help you get the home you want. We’ll show you the units in Trump Royal that fit your wants and needs, and then we’ll show you how to negotiate for them. You’ll have no trouble buying your new condominium unit, because we’ll give you tips on the fees and regulations associated with owning a condo, and then we’ll help you close the deal at the closing table. You could own a new condo in Trump Royal that easily.

Luxury has been a hard sell for the past few years, as is often the case when the economy is in trouble. As with stock prices, housing prices plummeted and had trouble rallying. Though there have been some shining moments, the overall picture has been pretty grim. Fortunately, this seems to be changing, as many more people are starting to seek out the luxury available at Murano Grande. This SoFi luxury condo complex has seen some excellent boosts in sales, and that means there is a light at the end of the tunnel.

The Effects of the Recession

The recession has had an effect on many things, with the housing market hit hardest of all. The mortgage crisis made people a little jumpy when it came to applying for a home loan, and that meant people were only buying what they needed. Buyers who could afford to make the leap were able to negotiate prices down to get great deals on the properties they bought, putting them in a position to make a great profit when the market bounces back. This wasn’t the best scenario for sellers, but it did certainly keep the market moving a little bit.

That luxury that no one was buying could be found at Murano Grande Miami, and now people are beginning to take notice again. With over twenty residences sold in Murano Grande in 2011, the sales records show a jump that can’t be ignored. People are starting to buy bigger and better things again, and that means we’re seeing the beginning of the end of this recession. The differences between asking price and sales price are dinishing, and that means the buyers’ market is also coming to a close. If you’re hoping to get a great deal on a condo in Miami, then you should start looking at properties in Murano Grande right away.

Luxury for Your Money

When you purchase a condo in Murano Grande

there is a lot you’ll get for your money. You can be sure the interiors will have a decorator’s touch, with upgraded lighting, flooring, appliances, countertops, and fixtures. These luxury touches can be found in many homes, but there is no way you’ll get the same view that the Murano Grande offers. The amenities that go along with the purchase of a residence are hard to beat, too. You can enjoy the swimming pools, beach access, service and security staff, and fitness centers any time you choose. Everything comes together to give you a life in the lap of luxury.

Make Your Purchase Now

If you want to take advantage of the prices, it’s imperative that you do so quickly. If you wait too long, you won’t be able to enjoy the buyers’ market, as it’s coming to a close. Our licensed and experienced agents would be thrilled to help you choose a condo that will be perfect for your needs. We know condominium purchases in Miami better than anyone, so we can make sure you understand the negotiation process and the homeowners’ association regulations. We’ll also ensure that you get to the closing table with no problems so that you can fully enjoy your new home.