I was on the phone today with a prospect that lives in Switzerland. He is an avid reader of blogs and information about Real Estate investing and opportunities in Sunny Isles Beach, South Florida. He is a little confused about how to find the best deal in the South Florida marketplace and he's having a hard time digesting all the information coming from so many angles and interests.
He tells me that he read an article that I had written that stated the best deals are in the "default" area and he liked it. I had written that "defaults" are good because the investors don't have to compete in bidding war at foreclosures or auctions, or go through interminable process and technicalities of the short sale.
With that information in hand, he announces that he and his wife are ready to buy Turnberry Ocean Colony at 2004 prices, a four bedroom "defaulted" unit minus a 15% discount. "I would take an airplane today, fly there and buy the apartment" he states. If that type of deal would be available in that building, it will be sold before he calls his travel agent. This type of deal doesn't exist simply because default units in that building.
I would like to clarify a few of these points. There are a lot of people making outrageously low verbal offers in Miami but not being able to make a deal. The first step for an offer to be taking serious is to put it in writing with an escrow deposit. Second, not everything is foreclosures and not everything is for sale at 50% off in Miami! The Real Estate in South Florida is highly fragmented and properties have different location, prices and quality. Most important, different supply and demand parameters apply for each area and each building.
Turnberry Ocean Colony is an amazing building, oceanfront in a prime location, ultra-luxury, very sophisticated and very private and is not for everybody. In fact, there are only 130 units in the South Tower which was just delivered. Supply and demand all over again. If I were a developer from a different building with 800 units and a 25% default ratio and I have 200 units back in the market burning a hole in my hands, yes I would let them go for the original contract price minus 15% (the maximum legal amount that developers are entitled to keep from the default buyer's deposit). But, on the other hand, if I were the developer of a product that is unique in the marketplace, with only ten default units (just to mention a number), those units would be gold. I would definitely be able to sell them fast at fair market price. Market price is a great price for today's standards. Market price today means lower price. In the good old days units that defaulted were sold from 50% to 60% above the original prices. The good news is that market today is all about opportunities, but make sure to identify the best market prices and their bottom line, and once you are in front of a great deal don't hesitate, grab it. Remember that the worst deal you can make in this marketplace is not making a deal at all.
I've decided to make an in-depth analysis of the available inventory in the best buildings in Miami. I will start with the ones that I consider a great opportunity and I am going to give you my opinion as if I were buying them myself, considering parameters of price, price per square foot, elevation, views, tower number, floor-plans, developer and demand. I will start with Turnberry Ocean Colony, because it's just my favorite buildings. Here are the best opportunities in that building:
NOTE: SEE INFORMATION ON PRICES, PICTURES AND AVAILABILITY, UPDATED IN REAL TIME:
TURNBERRY OCEAN COLONY BEST OPPORTUNITIES IN THE SOUTH TOWER (NEWEST ONE)
TURNBERRY OCEAN COLONY BEST OPPORTUNITIES IN THE NORTH TOWER
Questions, Comments?
Gustavo Farfan is a luxury waterfront Real Estate specialist in Miami, with over 25 years of Real Estate experience. Currently, with Marka-Tech Associates. He can be reached at 786-200-8700 or gustavofarfan@glfproperties.com
http://www.gustavofarfan.com
http://activerain.com/blogs/gfarfan1
http://www.technorati.com/people/technorati/gfarfan1
http://turnberryoceancolony.blogspot.com
http://www.immobel.com/miamicondo
http://ezinearticles.com/?The-Truth-About-Miamis-Buyers-Market&id=1092629
http://ezinearticles.com/?Selling-Your-Property-in-a-Buyers-Market&id=977548
http://www.turnberryoceancolony.com/
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