The current decade has been considered as a booming period for the Miami metropolitan area property market scene. Along with the surge in the area’s economy, and an influx of investments and immigrants, the Miami real estate market is currently undergoing probably the biggest, and largest transformation ever in its famous and colorful history.
Just by looking at the downtown and suburban Miami areas, one sees the landscape of real estate in Miami as ever-changing, and with every year, new condominium and high-rise units grow up and clutter this sunny Florida city.
Take for example, Miami Beach , real estate prices are surging, and getting much higher with a lot of new investment opportunities to be gobbled up by potential investors. A major indicator of the increase in opportunities in real estate is shown by studying property values and building activity. Construction and building activity has risen throughout the city. As more homes, condominiums and apartments are renovated, property values have increased at an unexpectedly rapid pace.
By the middle part of 1998, the taxable property value for Miami Beach was $6.96 billion, more than doubling since 1983. To add, the estimated value of building activity has remained constant over the last five years, between $150 and $200 million with over 3,000 permits being issued. This indicates an investment of over $1 billion in residential and commercial building activity in the 1990′s.
Real estate analysts and industry insiders predict that within the next several years, property values in this area would be among the most expensive and sought after prime real property pieces in the United States . With so many variables driving the market, and economic indicators pointing upwards, it surely looks like the Miami real estate market would definitely be on the upward rise for decades to come.
By comparing property trends with other major markets in the country, Miami and its surrounding suburbs still has some of the least expensive real estate on the market. The city currently has an average median asking price for housing units of $114,000, as compared to the state average of $92,000. The median value of owner-occupied housing units currently stands at $120,000. Waterfront homes in the Miami area currently run for $800,000, and one will not find prices like that on similar areas in the Los Angeles area.
However, with the ever-increasing demand for Miami real estate, these prices surely would be just temporarily low ones. Admittedly, the real estate boom in this area has become one of the hottest pieces of investments, with people coming from all over the world and cashing in on the plethora of Miami pre-construction deals.
The flurry of real estate pre-construction deals give people the opportunity to build equity in a property, while not having to pay the normal inclusive duties such as taxes, maintenance fees or mortgages. Whenever a buyer purchases a pre-construction property in the Miami real estate market, 10% of the sales price is due at the time of contract. The second 10% is usually due within the next six months, or probably by the time the building’s foundation is finished.
Condominium conversion is another rising trend in the Miami real estate picture, where rental apartment complexes are bought by a developer and sells the unit individually. With land for new condominium construction rapidly depleting, condo conversions are probably the next most logical step. Miami condominium conversions usually offer residential and office spaces that are at lower price points that appeal to a wider array of buyers. Condo conversions are great for end users and investors alike. Investors can typically find units with existing tenants, and end users are able to attain a good price and move in immediately.
Owning condo hotels has also become the forefront, not just in the Miami real estate market, but throughout the entire country as well. The experience of owning a luxury vacation home at a world class resort and receiving rental income whenever you’re not using it, or away from home for quite a long time is truly one unique experience. Condo hotels have become the newest trend in vacation home ownership.
The key to investing in pre-construction, condo conversions or condo hotels in the Miami property market is to get in early at the very beginning of the sale. The best way to stay in touch, and to be on top of the latest Miami real estate trends is to have a well-connected and well-informed realtor to work on with. This gives you the best prospect as a buyer to purchase the properties before the rest of the public does get the chance.