Lunch on Miami Beach..

By
Real Estate Agent with Optimar International Realty

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?     

Comments (6)

Teri Isner
Keller Williams Realty at the Lakes - Orlando, FL
GRI, CRS, CIPS
This is happening in Orlando too.  Here the investors are usually cash buyers from Asia or South America looking for someplace safer to place their cash.  Some of the short term communities with such high prices are seeing this too happy to get something from rent to help cover expenses.  Not great..just wonder who was selling them this pitch.
Aug 17, 2006 09:32 AM
William Seufert
Florida List For Less Realty, Inc. - Pembroke Pines, FL
Agree. We`re dealing with alot of foreign investors.. Many are taking advantage of the euro..
Aug 17, 2006 09:38 AM
Maureen Francis & Dmitry Koublitsky
Coldwell Banker Weir Manuel - Bloomfield Hills, MI
Coldwell Banker Weir Manuel
So are there good deals on short term vacation rentals too right now?  Or are the investors looking for the people that will sign a lease?
Aug 17, 2006 10:04 AM
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs
The investors have put all their money in one area. This has to happen when you get speculation in these hot markets. I do not work in one of those markets so we have not seen the downside as you guys will experience then we never get the upside either. Being in the middle of the country we tend to get forgotten. Eric
Aug 17, 2006 10:13 AM
Christopher H
REAL ESTATE - Shelby Township, MI

Not too good for those investors.  5 or 10 years before they can sell, ouch!  How are other properties selling?

Aug 17, 2006 10:24 AM
Erika Cannet
Optimar International Realty - Hollywood, FL
Anything near water sells in Miami and Miami Beach. The water locations will always have a market!
Aug 23, 2006 10:45 PM