WHICH PROJECTS CAN YOU GET A DEAL?
Once upon a time, when I was still a rookie, a developer told me that if you wanted to get a deal when buying into a new preconstruction project you had 2 moments. First when the project is first launched so you get in at the "Friends and Family" price. Your second opportunity is when the project is already built and almost fully sold.
At this time of the real estate cycle, developers have some inventory left and since it's a buyer's market they go overboard to sell their last units and move on to a new project.
We have done a list of recently built condos that still have a few units from the developer. We can negotiate for you a discounted price as well as some "goodies" such as a year of free maintenance or property taxes paid in full on the first year or no developer fee (which is in general 1.7% of the price). Check out condos such as Flatiron, Brickell City Centre or even Aria on the Bay for the last developer bargains.
I personally think it's the best moment to buy into a project because you have in front of you the final product so you won't be disappointed as some buyer were when their condo was delivered and the living room wasn't as expansive as they thought or there was a column which they hadn't expected.
WHY DOES EVERYONE MOVE TO FLORIDA?
Did you know that Miami ranked #5 as the fastest-growing luxury real estate market in the world? The 1st market is Madrid, then Berlin, then Paris, and Capetown right ahead of Miami.
We benefit from a national and an international crowd wanting to name Miami as their primary residence.
Nationally residents from New York, Connecticut, and California migrate to Miami for tax reasons. High-end earners like hedge-fund managers, successful tech CEO's decision to establish their primary residence here to escape the Trump tax reform.
As a consequence 902 people/day migrate to the Sunshine State whereas New York city loses 132 people/day. Out of these 902 people, 25% establish their residence in Miami-Dade. Did you know that our private jet industry has increased by 35%?
Internationally Florida is the #1 state in US foreign buyer sales. Mexicans, Brazilians, Colombians, and Argentinians are the four major investors in Florida. Mexico's leftist government has enticed wealthy earners to invest abroad and Miami is a geographically close safe heaven. Even is Colombia has been stable recently its residents still view Miami as a great way to diversify their investments. Brazil is currently in a terrible recession so high net worth Brazilians are not sure about the future of their country and prefer to place some money in the US. The same for Argentina who is living through a political turmoil and a depreciation of the peso has lead Argentineans who have the capacity to invest in Miami.
As a consequence, south American buying has reduced in the last few years but an investment in Miami is still viewed as the best place to store money.
BEST ART BASEL EVENTS & PARTIES
Hereafter is my selection of some of the best Art Basel events and parties this week:
1.#BaselDream party- Dec 5th @ 4pm
Enjoy the Dream hotel rooftop party. The event will feature pieces of art, live performance and an interactive mural in which guests can take pic and tag #baseldream and become part of the projection.
2.Rumors Art Basel party- Dec 6th@ Sunset
The Deck hosts LA-based Future primitive raver and DJ Israeli Guy Gerber for seven hours of partying under the stars.
3.The Cloud- Dec 6th @ 5pm
The Burning Man born immersive art installation is coming to the Magic City innovation district. A fluffy cloud around your head you'll experience a reinvention of a concert experience.
4.Rhye- Dec 5th@North Beach Bandshell
R&B concert under the stars by canadian vocalist Mike Milosh presents indie-electronic project Rhye
5.UNKNWN-Dec 5th-8th@ 261 NW 26th street
A string of opening events and new releases including brands such as Nike will be hosted at curator's John Margaritis new massive in-store basketball court.
ARE WE RUNNING OUT OF INVENTORY?
Two weeks ago I went to a very interesting real estate conference. The speaker was a developer who presented to us his perspective on Miami for the next 5 years.
To quickly understand his theory you have to know that there is 2 kind of residential condo sales in Miami. First, the new construction sales which you buy from the developer and then the resales of older buildings.
89% of the new construction inventory has been sold leaving only 2,001 units through South Florida. At the current rate, it will take 2 years to sell these which brings us to 2021.
Nowadays from inception to delivery developers need around 5 years to deliver a project. At this time there are only 5 projects which have launched sales which means that even if new projects start in 2020 they won't be ready before 2025. These leaves us with a 4 years window without any new development inventory.
Bottom line, starting in 2021 buyers will have no choice but to focus on resales which will reduce that inventory. When the inventory will be lower it will create a shortage and prices will increase till the next cycle.
DEAL OF THE MONTH: 9180 W BAY HARBOR #5B
• Price: $445,000
• Breathtaking views of Indian Creek
• 1,500 sqft
• 2 beds / 2 baths
• Maintenance fee: $598/month
• Pool, gym, 2 parking spaces