Other Free Encyclopedias » Online Encyclopedia » Encyclopedia - Featured Articles » Featured Articles: American Idols Tickets - How to Score American Idols Tickets (and How Not To!) - Where to Find American Idol Tickets to Meet Singles Free - How to Meet Singles Free

Miami Florida Condos - Is it the right time for Miami Florida condos?

property market housing potential

Following earlier booms in condominium ownership, Miami Florida condos took a nosedive. As of 2007, Miami creditors foreclosed on over 50,000 properties, enough to rank it the most troubled housing market in Florida and the 8th worst in the United States.

The basic concepts behind supply and demand may make Florida condo ownership seem lucrative. After all, with all these foreclosed properties, shouldn’t that mean that they should now be available more cheaply than ever before?

This observation is both true and misleading. While prices are low right now, it is hard to tell whether they will rise or fall, especially in the still shaky Florida real estate market. If the condo is desired as a commodity rather than a necessary residence, careful investors would be advised to remain out of the Florida real estate market.

This warning comes with two qualifiers, however: first, higher risk investors might feel that now is the right time for such an investment; second, some condo purchasers aren’t waiting for the perfect time so much as addressing their current needs.

Florida is a curious beast in terms of property ownership. Though often broadcast as a paradise, Florida is an expensive place to build homes. As the third wettest state behind Alaska and Michigan, this swampy peninsula requires large maintenance fees to sustain its real estate. When buyers and renters are scared away from the area—say, by a housing crisis—then real estate owners lack the capital to maintain their properties.

Despite these pitfalls, a few speculators have started scooping up valuable looking property in the hopes of turning high profits in the long term. In June 2010, Lionheart Capital dropped $120 million on premium Palm Beach property, a bold move which has some potential Miami condo owners wondering if now might be the right time for them to make a gamble as well.

Those who still wish to purchase Miami Florida Condos so soon after the housing crisis can minimize their risks by being choosy about their property purchases. This can be done by looking for good values from motivated sellers in well-populated condominiums. Resale value is also an important consideration.

Since a condominium is a co-owned property, its value depends on all the buyers who share its ownership. Thus, a condo with many empty rooms is riskier than one which is only filling a gap left by a previous occupant.

Like with homes, the amount of time a condo has been on the market is also a good litmus test for condo quality—if the property has been passed by for months, then it probably has some glaring flaw which would cause other potential buyers to pass on it. However—and this is one reason the housing market makes these investments risky—many properties have been having trouble selling, and it is difficult to know which ones will heal along with the market and which ones will sit and fester for years or more.

While inspecting Miami Florida condos, potential buyers should place themselves in the shoes of future buyers. Nice views and proximity to the beach are eternal concerns for condo purchasers, and if the market does recover, those settling for inferior property may be forced to watch others succeed while their own investments fail to blossom.

In the aftermath of the housing crisis, Miami Florida condos represent an investment risk. While some companies like Lionheart Capital have gambled on a solid housing recovery, it is ultimately the job of the potential purchaser to decide whether the risks are worth the potential rewards.

Buy Eq Plat - Is it Worth It to Buy EQ Plat? [next] [back] Health Insurance Self Employed - Is Health Insurance Available for the Self Employed? - Finding Health Insurance for Self Employed Companies

User Comments

Your email address will be altered so spam harvesting bots can't read it easily.
Hide my email completely instead?

Cancel or