Monthly Archives: February 2017

The Unique Appeal Of The Miami Real Estate

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 Next Real Estate Bubble to Burst

News headlines throughout major U.S. cities note record-high commercial vacancies, along with a decrease in the asking price for commercial rental space. As was predicted by several major real estate statisticians earlier this year, the next real estate bubble to burst is commercial properties.

Based on statistics compiled by Cushman & Wakefield (C&W), the commercial vacancy rate hasn’t been this high since mid-2005. C&W, a global commercial real estate brokerage and consulting firm, found that vacancy rates increased in 24 of the 32 major markets they surveyed.

Colliers International, a global commercial real estate service provider, noted that rental office space is becoming abundantly available. Nationally, office space vacancies in major business districts jumped from 12.5 to 13.74 percent in the second quarter of 2009. Suburban markets increased 1.95 percent to 16.28 percent. In addition, the firm found that the asking rent in major districts dropped by 3.2 percent during the quarter to an average of $38.25 per square foot. Average asking rent in U.S. cities overall, however, are now more often priced at around $25.00 per square foot.

Both firms note that the market has been pummeled by increased supply and a decline in demand due to the economic downturn. Executive Managing Director Maria Sicola asserted that elevated unemployment numbers translate into the reduced demand reflected in higher vacancy rates. More than 66% of 6.5 million square feet of newly constructed commercial space was still vacant at the end of the second quarter of 2009.

Michael Cohen, a research strategist for Property & Portfolio Research (PPR), stated that the firm’s expectation was that vacancies would reach historic highs in office, apartment and warehouse space in 2009. According to ING Clarion Real Estate Managing Director David Lynn, the hospitality market has been dealt the biggest blow with major cutbacks in business and leisure travel.

Most cities across the nation are experiencing a rise in commercial vacancies. Phoenix has a 17.4 percent vacancy, Chicago’s is at 15.4 percent, Washington, D.C. holds an 11.7 percent rate, Las Vegas exceeds 20 percent, Kansas City is higher than 18 percent, Providence, Rhode Island is now over 30 percent, and so on.

Along with the rise in commercial vacancies, insurance companies are becoming more concerned about liability associated with vacant real estate. Vacancies present additional risks not applicable to occupied real estate. Commercial insurance companies are encouraging owners of vacant real estate to minimize risk by implementing the following:

* Notify insurance company of vacancy, become informed and follow policy terms that apply to vacant property.
* Advise local authorities that property is vacant.
* Remove all combustibles, debris and any unnecessary materials from vacant property.
* Inform local fire department of materials left that could impair fire-fighting.
* Inspect property weekly, have someone watch the property or hire a guard service to daily drive by to observe property.

Find A Home On The Coconut Coast And Real Estate

The tiny towns and villages in the Coconut Coast region of Bahia with its unending lineup of beaches has always been an attraction for those who want to live a life in peace and quiet, away from the crowds, noise and dust of the cities. Guarajuba just 14 km away from the tourist town of Praia do Forte and about 70 km from Salvador is one such village. You will find many lovely apartments and houses among the real estate for sale in Guarajuba.

Guarajuba is famous for its beautiful palm lined beaches and beach activities like surfing. It is also a place with plenty of greenery and it is fun to take a walk or a bike-ride along its roads lined by trees on either side. Most real estate for sale in Guarajuba is located in well-planned and developed condominiums which provide a secure living environment. The place is a preferred location for families and holiday home seekers.

Guarajuba Real Estate – An Overview

In Guarajuba, you can get apartments from R$200,000 to R$650,000. An average apartment in a nice condo near the beach will cost you about R$385,000. Houses are available in a wide range from R$195,000 and the price can go up to as much as R$2,450,000. An average house will cost you about R$1,032,000. In addition to residential real estate, commercial real estate like hotels may also be available.

You have the option of buying a plot of land in a nice area to do your own construction or just for investment. Land can cost you anywhere from R$160,000 to R$1,000,000 depending upon the size and location of the plot. The average price will be about R$473,000 for a piece of land in a nicely located condominium.

Apartments In Guarajuba

You will find quite a few apartments below R$350,000 in good locations near the beach or in the village. These apartments which could be up to 100 sq. meters in built-up area usually have two to three bedrooms. In some apartments one bedroom will be a suite.

The condominium generally provides common facilities like a swimming pool, a small garden or green area, parking facility, barbecue, a party area and sometimes facilities for indoor and outdoor games. Almost all condominiums provide round the clock security.

If you go for a more expensive apartment priced above R$350,000, you will find these in gated communities or upmarket condos very nicely located on the seaside or close to the beach. You may also find duplex apartments in this range. The condominiums generally provide plenty of leisure facilities.

These apartments are usually above 75 sq. meters in built-up area and have two to four bedrooms with suites. You can expect a large swimming pool, well designed garden, jacuzzi, barbecue, party area, ballroom, games room, tennis courts, volleyball courts, football fields, kids play area, children’s pool, sauna, massage center, bar and laundry area as part of the common facilities. While every condominium may not give all these facilities, they all provide 24 hours security.

Guarajuba Houses

Houses in Guarajuba are located in nice quiet areas within the town and not too far away from beautiful beaches. You can get good houses for less than R$700,000. Even for this lower price range, you can get a nicely built two floor house with premium construction.

You can expect 100 to 300 sq. meters of constructed area on plots of 400 to 500 sq. meters with a budget within R$700,000. This could mean houses with up to five bedrooms and one or more suites depending on the price. Most houses have a pool, garden, parking facility, service area, kennel, pantry and a party area.

Between R$700,000 and R$1,000,000, the locations get even better and you can find some very spacious houses in this range. The plot area should be between 500 and 1400 sq. meters and constructed areas between 300 and 700 sq. meters.

With this kind of space and budget, you can easily find houses with three to six bedrooms and sometimes with as many as five suites. You will also get a high end swimming pool, a large garden or lawn and garage to park multiple cars. Some houses come semi-furnished.

In addition to the previously mentioned facilities, you may get employee quarters, water storage facility and a water source such as a well on the premises. The condominiums usually provide several leisure facilities and infrastructure for common activities including a clubhouse.

If you are willing to pay above R$1,000,000 you can get a high end house in a luxury condo by the seaside or very close to the beach. Though the prices can be as high as R$2,500,000, the locations are the very best in town. You will find houses with over 250 sq. meters of premium construction on plots with areas of 1000 sq. meters or more.

In the high end of the range, expect houses with three to five suites which sometimes have air-conditioning installed. A large swimming pool with premium features, a well-designed garden and multiple car parking is almost always available. These houses usually come semi or fully furnished. The condominiums offer all leisure facilities previously mentioned and in addition, you can expect playgrounds, solar heating and employee quarters. Security is usually top-notch with round the clock CCTV surveillance.

Buying Land In Guarajuba

The real estate market here offers both standalone plots and plots in well-developed condos which offer several common facilities. These plots are usually in very nice locations and you can get them from 500 sq. meters onwards.