I’ve compiled some great tips

having to do with buying an oceanfront luxury condo in Miami in current economic situation. Despite recent decline in home sales and condo sales, home ownership is still one of the best solutions for your financial prosperity. Also, we all know that the nature of any market, whether stock market or real estate is cyclical, and although right now it looks like the real estate market is in distress, the reality is, the real estate market is it’s natural correctional cycle.

Is luxury oceanfront condo the right investment in the current market?

In my opinion, luxury oceanfront condo in Miami is the best investment. That’s right! Despite the current downturn in the Miami real estate market, the luxury oceanfront condos have suffered the least damage. Although the luxury oceanfront condo market has decline somewhat in prices, the damage is way less than 40% and 50% that the rest of real estate has suffered.

But how do you determine what the decline is with the particular building that you are interested in? Lets look at Turnberry Ocean Colony in Sunny Isles Beach. Scroll down until you see tabs “For Sale”, “For Rent”, “Sold”, “Foreclosure” and “Stats”. Click on the “Stats” tab and look at the average price paid in 2006 – $675 per square foot, 2007 – $682, and $685 2008.

Turnberry Ocean Colony Condo
Do you see my point? Not only that the prices did not fall for Turnberry Ocean Colony Condo, they went up in this market! What does that tell you? Condos such as Turnberry Ocean Colony are a perfect investment in the current market. The price will for sure go up once the market rebounds, and there are certain signs of it already.

You can analyze each building you’re interested in and select the one that suffered the least damage.

What area do you want to be in

There are only a few areas in Miami offering luxury oceanfront condos: South Beach condos, Miami Beach condos, Bal Harbour condos, Sunny Isles Beach condos, Hallandale condos and Hollywood condos. That’s it. Check out each area to determine what area suits your lifestyle most.

Examine your credit report

Before shopping or even meeting with your mortgage broker examine your credit report. You can obtain a free copy on-line from a variety of credit report agencies. Your credit report is used extensively by the lenders to evaluate your buying power and worthiness. Your credit score can impact the interest rate and costs of your mortgage and property insurance. There are 3 different credit reporting agencies and you should obtain a copy of your report from all 3 agencies.

Know what you can afford

No matter where you decide to purchase your dream condo, you must know what you can afford.

Downpayment – how much can you put down? At a minimum, you must put down at lease 20% of the purchase price to qualify for a mortgage. However, some financial institutions may require more. Also, there are up-front costs associated with buying a condo, such as downpayment, appraisal, closing costs, mortgage points, taxes and maintenance. Before meeting with a real estate professional, consult with a mortgage broker to find out what programs are currently available and determine which program will work the best for your needs. In addition, this exercise will give you a clear picture of what kind of condo you can afford.

Use Internet to it’s fullest

Internet is a great way to find as much information as possible on any given subject, including Miami luxury condos. Websites like Sunny Realty is a great resource for your research. Generally speaking, the more information you find about your dream Miami condo the more knowledge you have in your arsenal and therefore the more leverage you have in negotiations. So, before you contact a real estate professional, narrow down your search to only a few luxury condominiums you like and can afford.

Today’s myth

Many buyers today offer totally unrealistic prices for prime real estate. Although you hear stories about someone buying a $1,000,000 property for $500,000, the reality is completely different. Most sellers have priced their condos down to an absolute minimum, with almost no room for negotiations.

Let’s say a condo owner paid $1,000,000 with 20% down, which was a very common practice just a few years ago. So, when the offer is 30% to 50% less than the asking price, it is easier for the condo owner to simply “walk away” from the deal and loose 20%, than to sell it and loose 50%. This is why your initial offer should be no less than 10% off in a desirable luxury oceanfront building. Anything less than that usually offends the owner and does not even get a counter offer.

Another great idea is to talk to your real estate agent and try to find out as much information as possible about the property and current owner’s situation before making an offer.

The best approach to buying an oceanfront condo in Miami

Again, you should be able to gather a lot of information on-line. Search on Google for a specific building you like and see who comes up on the first page. Mostly companies who put a lot of effort and detail in their websites are the most up-to-date hard working realtors who have the right knowledge. Look at the website – does it look like an amateur website a teenager put together? If that’s the case, stay away, because chances are the realtor behind this website is an amateur realtor.

Find an expert realtor in the area. A real expert is someone who specializes in a very small area, like South Beach real estate. Chances are that this realtor will know about deals that are not on the market, or the owners who are ready to sell at a great price.

For more information, please consult our expert Miami luxury condos team or call toll free today 1-877-368-2318.