HOW ARE THE SALES IN THE MAJOR SOUTH BEACH CONDOS IN 2019?
We can see an overall slowdown of the market this first quarter.
There has been an average -4.4% decrease in sales volume and a -7.3% decline on the price/sqft in the selected condos.
Almost all of the condos studied dropped in sales, except for the Waverly and the Floridian condo, which showed a +83% and a +700% respectively. This increase is remarkably high, but it is important to clarify that it might be linked to their lobby remodeling in 2018 which had slowed down the sales.
The condos with the biggest sale's decrease were the Icon South Beach and the Apogee. They both showed a -75% decrease in volume of sales. The Murano Grande also experienced a -50% drop in volume as well as a -16% decrease in price/sqft.
However we will note that the South of Fifth condos have experienced such a few number of sales in 2019 that it wouldn't be fair to compare their prices/sqft since we don't have enough data this year.
WHAT HAPPENED TO FOREIGN BUYERS?
Even if Miami is still one of the favorite destinations for foreign buyers, as it offers an appealing lifestyle, tax system, and good prices, new challenges are now creating an investment slow-down.
Foreign buyers have pulled back. This current year, there have been several inconveniences to foreign buyer’s investment in Miami. Here are the top 4 challenges for the areas with the largest percentages of investment in Florida's real estate:
- Stronger dollar
- More restrictive U.S. immigration
- Brexit effect
- Tighter Chinese government policies
Let's start with Latin American buyers which have the largest investment in Florida real estate with 36% of all foreign transactions. There are different challenges depending on the country. Firstly, with an extremely unstable government, Venezuela has suffered from inflation and economic difficulties which has caused a decrease in their investment income. Same happened to Brazil with the new election of the current president Jair Bolsonaro. Colombia, on the other hand, has shown a stronger economy and a lot of desire to invest in Miami single-family home market.
Canadian buyers, which represent 22% of the total foreign investors in Florida, are normally trying to escape from the cold weather and find refuge in sunny Miami. When the Canadian dollar comes closer to the U.S. dollar, buyers invade the area. However, with a stronger American currency, Canadians are coming less and investing less. This is good news for Canadians that already own a property in the U.S. as it is a good time to sell.
Europeans represent the other 19% of the pie of the foreign investment in Florida. British buyers have shown a slow-down as a consequence of the Brexit effect. There is a tighter U.S. immigration to some UK buyers that try to invest in the U.S. The Brexit is also affecting other countries such as France, Germany, Spain, and more since they want to see what the outcome is.
Asians represent 11% of the total real estate investment in Florida. Chinese investors have extremely restricted governmental policies regarding foreign investment.
7 THINGS TO CONSIDER WHEN BUYING A VACATION HOME
Miami is one of the favorite locations for owning a vacation home.
Condoideas Realty Group is here to guide you thru this investment. Here are the 7 things you should know before buying a vacation home:
1. Purpose: The first thing that you need to clarify is why are you planning to buy a vocational home? Will you and your family be the only ones staying at the place? Are you planning to rent it while you are not there? How many times per year are you planning to use it? These are important questions to filter your research
2. Location: One of the most important things to decide before buying is the location. The condition of a house changes with time, but the location doesn't. Are there enough attractions and activities nearby? Or would you need to drive hours to get to the touristic attractions?
3. Locals advice: Who knows better about the area than locals? If you are really looking for information, they are your best resource. Ask them about the neighborhood, how is it there during the low season, are there any constructions in the area coming soon?
4. Local Laws: Research about any regulations that you need to now? If you are planning to rent, local rules will maybe restrict you. It would be better to figure that out before purchasing a place
5. Cost: You need to understand that buying a property will be a constant investment. There are some extra costs such as property taxes, maintenance fees, insurance, mortgage... And if you are planning to rent it, consider a property manager if you are not willing to deal with the tenant's needs.
6. Accountant: Talk to an accountant and figure out everything about the property taxes, federal tax laws, rental income taxes, and everything else you need to know about the contribution regulations.
7. Talk to an expert: Even if you have done a lot of research on your own, it is always better to go to a professional realtor that knows how to proceed.
Now you know everything you need to know before buying a vocational home, so our last tip is not to be pressured by time if vacation season is around the corner. You can come always come to us for any advice, we would be more than happy to help you!
WHAT TO DO WITH YOUR MOM ON MOTHER'S DAY?
This month we decided to do something different. We dedicated our full "event's suggestions" to one super special date that takes place this month. We want to celebrate moms as they deserve, so here is a list of our favorite things to do with your moms in Miami on May 12th for Mother's Day.
Broadway Musical: If your mom is a Disney fan this is definitely the best way to go. Take your mom to the Adrienne Arsht Center and enjoy of the one and only Disney's Lion King Broadway show. With tons of awards, this show will clearly be a plan your mom will enjoy.
Garden Brunch at Fairchild: Take your mom for an outdoor brunch at the Fairchild Tropical Botanic Garden. Go get an incredible and exquisite seafood buffet brunch from Le Basque Catering, followed by a relaxing walk through the gardens.
Art exhibit at PAMM: Enjoy together the best contemporary art exhibit at the waterfront Perez Art Museum Miami in Downtown. Big surprises are organized to surprise you are your mom and to make you have an incredible day!
Bay Cruise at Deering Estate: Why not to have a glass of Champagne with beautiful bay views with mom? You could also bring your own picnic basket and have brunch in the 21st Century Museum, Deering Estate. If you don't feel like preparing it, you can also pre-order a catered brunch before your cruise departure.
DEAL OF THE MONTH: YACHT CLUB #2703
Listed at $755,000
2 beds / 2 baths
Lowest priced high floor unit