Miami condos 50% off sale

[farmerEd]

When it was all over, Pham walked away with a two bedroom unit on the 19th floor. To put the price in perspective, a one bedroom priced at $350,000 sold on average at auction for $176,000, almost half.

A two bedroom unit that sold for about $600,000 last year, sold on average for $295,000.

cbs4.com - Miami Condos Go For A Song At Auction


Ouch, thats gotta hurt for all those other folks waiting to sell, or even those that bought last year and aren't.....

 

[tryan]

... the healing has begun.

I wonder if an investor could rent the 2 bedroom unit for 3k/mo. Even the 50% seems a bit too high. My guess is you'ld need ~4k/month to show a profit. Condo fees and special assessments in luxury condos are a killer.

Disclaimer - I don't rent in the Miami market.

 

[FinallyRetired]

Here's the web site for that Platinum condo. It says prices were to start at $250k, probably a low floor with no view. Looks like a nice location, close to Biscayne Bay. Somebody is getting a great deal if they can hang on to it for a few years.

Platinum Condominium - Miami Arts District Luxury Condominiums - The Florida Condo Directory

 

[W2R]

Those condos are in the Miami "arts district". Granted, I have only been to Miami once in the past half century, in 2005 for three busy days to attend a conference. Still, I remember thinking they must have put up signs saying "arts district" in the middle of a declining neighborhood or slum in order to sell condos, and wondering how/why anybody would buy in that area or feel safe living there, and being utterly aghast at the prices they were asking for condos in that neighborhood. Maybe I got the wrong impression!

 

[tryan]

Yeah, wait another year or 2; foreclosures will have peaked and been placed on the market AND the builders will have finished everything in the pipeline.

THEN you'll see these things available for 30-40 cents on the dollar from the prior peak. Sold at a price investors can rent out the units and PROFIT month to month. That's what will set the bottom (investors re-entering the market).

Until then, keep your seat belts on.

 

[brewer12345]

Yeah, wait another year or 2; foreclosures will have peaked and been placed on the market AND the builders will have finished everything in the pipeline.

THEN you'll see these things available for 30-40 cents on the dollar from the prior peak. Sold at a price investors can rent out the units and PROFIT month to month. That's what will set the bottom (investors re-entering the market).

Until then, keep your seat belts on.

That's what I am waiting for. Although I think that if I see some of the houses for sale in my hood show up n the weekly sheriff's sale list, I might go take a look and make a seriously lowball offer.

 

[FinallyRetired]

According to this story, the developer auctioned 20 units but only 9 had no minimums. He had to sell those 9, but took back the other 11 because he didn't get high enough bids. And the story does say that's not the best neighborhood in Miami.

Miami condo auction illustrates distance between buyers, sellers - 09/25/2007 - MiamiHerald.com

 

[W2R]

According to this story, the developer auctioned 20 units but only 9 had no minimums. He had to sell those 9, but took back the other 11 because he didn't get high enough bids. And the story does say that's not the best neighborhood in Miami.

At least I wasn't nuts to get that impression, then. Personally I would not have felt comfortable parking and walking around in some parts of the Arts District by myself, especially in the evening.

And yet, there were many new condo developments going up in the Arts District at the time, and advertised in the paper at ridiculously high prices. I wondered if they were being marketed mostly to speculators.

 

[lazygood4nothinbum]

Those condos are in the Miami "arts district". ...signs saying "arts district" in the middle of a declining neighborhood or slum in order to sell condos, and wondering how/why anybody would buy in that area or feel safe living there

just what i thought when i first looked at the ad. checking the address on mapquest, surprise, we're both sort of right. only rather than being in a declining area, it is in a formerly upward mobile area which lost steam midstream.

there is a very large marginal area which runs along the west bank of biscayne bay. a block or two west of there is much poverty. before the boom, no one with any kind of money would have considered living there. it is less than 15 blocks to overtown, site of a locally famous 1982 overtown riot which even closed down i-95.

there are some great old, but rattyish, houses in this area between biscayne blvd (u.s. 1) and the bay and no doubt many existing owners made a bundle as redevelopment came to the area. unfortunetely for those who did not sell and for those who recently bought, the boom did not last long enough to radically change the character of the area.

and so now there are lots of condos for sale in the "arts district" (named for a hugely overpriced but gorgeous performing arts complex recently completed about 20 blocks south of this particular condo, offering beautiful views of the bay with prices you used to not be able to touch with a stick, in an area where you better be walking at night with a big stick.

edit:

... the healing has begun.

I wonder if an investor could rent the 2 bedroom unit for 3k/mo. Even the 50% seems a bit too high. My guess is you'ld need ~4k/month to show a profit. Condo fees and special assessments in luxury condos are a killer.

Disclaimer - I don't rent in the Miami market.

taxes are probably over $6K/yr. i'm guessing but maintenence maybe another $6-8k (which might include some insurance)? then you need interior insurance for your unit plus any mortgage costs. my guess is rent in that market might be $2300 if you are lucky. i see ocean view apartments in very good areas go for $2k these days. we were able to get $3500 for our house back in the day. as it isn't selling we're considering renting again. maybe we will get $2k or $2500 max.

 

[W2R]

and so now there are lots of condos for sale in the "arts district" (named for a hugely overpriced but gorgeous performing arts complex recently completed about 20 blocks south of this particular condo, offering beautiful views of the bay with prices you used to not be able to touch with a stick, in an area where you better be walking at night with a big stick.

So THAT's why it is called the "arts district". When I was there, I started driving around in it (in my rental car), looking for art galleries. It got a little spooky at dusk so after only just beginning my search I gave up. I went back to Biscayne Blvd and my hotel - - having found no galleries (just a tattoo parlor).

 

[tryan]

my guess is rent in that market might be $2300

wow! sooo prices could correct ANOTHER 50% before these things rent at a positive cash flow.

I might go take a look and make a seriously lowball offer.

That's always fun. The problem with biding is the "cash in 30 days" ... either need a fat wallet or fat equity lines.

 

[lazygood4nothinbum]

wow! sooo prices could correct ANOTHER 50% before these things rent at a positive cash flow.

by then you'd be purchasing the product for less than the cost of the materials it took to build it. a more likely scenario is florida dropping property taxes. but i don't see that happening within the next 5 years.

 

[tryan]

Yeah, the builders will take a bath ... but they made thier wad during the boom.

Bought many properties below the cost of materials ... paid: 5k for a duplex, 8.5k for a sf, 15k for a sf, 17k for a sf, 19k for a sf, ... then it gets up into 30-40k range. Where there's chaos, there's opportunity! (Note the 5k duplex was a gut job ... the others required less than 5k of rehab before occupacy)

 

[Texas Proud]

I agree with Tryan... even at the 'firesale' price listed... they are WAY to expensive... drop another 50% and then you can start to sell them...

IMO an one bedroom should not sell for more than $100K...