Is Foreign Investment Hurting Miami?

Miami Florida is certainly at the forefront of the real estate meltdown today just as it was five years ago when the meltdown began. It started with foreign investors being lured into buying up high priced new construction from greedy builders who were too cheap to pay a realtor commission and then flipping the properties for even more money to unsuspecting buyers who were led to believe that the market's inventory was dried up, when in fact, it was simply a ghost of an inflated market. 

With all of the short sales and shadow inventory of foreclosures Americans here are going through you would think that the market has a chance of righting the ship and getting back on course. Inventory truly is low now, although the banks are holding back on a lot of foreclosure property. But foreign investors once again have been lured in to buy up all of the available cheap abundance of short sales and foreclosures and then turn around and rent them out this time instead of flipping, which would be okay if the pricing was done fairly, but it is not. Once again greed has set in by not only the investors themselves, but from their greedy and manipulative real estate agents who are new to the business and looking to make a splash. Now the agents have convinced these same investors to jack up the price of rent because Americans have no choice but to lease. So, what might have been a $1700. rental home a few years ago is now $2500.

This is what Miami has become. People taking advantage of others for the sake of a quick profit. Do yourself a favor. If you are moving here you are so much better off buying now than I can ever remember and I am not just saying that because I am a realtor because, believe it or not, I actually not only make more money on a rental these days, but get paid faster! I am looking out for the consumer who has been mislead either by an ignorant agent or the media. If you know you are going to be here at least five years and can obtain a loan, buy! It is actually cheaper than renting and you should see a minimal gain in those five years. If you are an investor from a foreign country be careful who you hire and make sure your timing is on because eventually the rental bubble will burst too, especially in the Miami condo market where only foreign investors are buying and not living. A big part of the real estate business is timing. Don't get caught in the real estate second meltdown this time if you don't have to. Take advice, but do your homework too.