Two days ago I`m down in SOBE, hanging out and waiting for one of my clients to arrive. I decide to go to one of those Ritzy Cafes on the beach. The kind where you sit out doors and they serve the pooch his own meal and water... Anyway, the buzz on the Beach was all about Luxury condo`s. Right now every investor in town is looking to rent ocean view condo`s in some of the best addresses that Miami Beach has to offer. The table to my right the girl is a model type tall and leggy, she tells her friend that she rented this FABULOUS 2bed,2ba condo for only $1700 a month, that's unbelievable i say to myself.
The building where she rented prices start at $540K and up! The mortgage has to be $3400 or more per month! Next a young couple who appear to be from Germany, he`s explaining to his girlfriend how they`re so lucky to be in this new Building next to the China Grille. My ears perch, i start listening harder. Somewhere, the guys blurts out $1500. Again, I`m figuring the rent is way too low, what the heck is happening? I meet my client and tell him that i`m listening to the people who live here, everyone is living in condo`s that are just completed and very expensive. he told me that the buildings were all Investor related, now the investors will take anything to lease their condo`s just to offset the mortgage payment.
I don`t see how any of these Investors will be able to sell for at least 5-10 years, why would I buy a condo when I can rent one for half price? When my lease runs out in Feb. 2007, guess were I`m heading?