Renegotiate with Related Group?
Bob makes a good point that the developer should seriously consider renegotiating the price of the unit. After all, there are probably tons of people who will simply walk away. Wouldn’t it benefit them to negotiate a more realistic price and guarantee income. I would really like to hear from other unit owners. After the CNBC interview, I had a renewed optimism about the unit. The fact that the builders haven’t abandoned projects altogether tells me that there is hope. There is only some much coastal property in the world. Miami is still a very popular destination. If only the builders would work with the unit owners. If you are a unit owner in the The Plaza, please let me know.
Posted: October 22nd, 2007 under Uncategorized.
Comments: 17
Comments
Comment from Daniel
Time: October 23, 2007, 5:28 pm
I am glad that finally you are looking something positive out of all of these.
Remember that the price you paid, compared to california, new york, or other areas is still very cheap.
all the brickell area will in the near future be on the 600’s per SF.
keep the positive mind open, a lot of european, latin america, and world customers will be comming soon to MIAMI.
wait until the hotels opens, like the VICEROY…
good luck !!!
Comment from Chris
Time: October 23, 2007, 8:44 pm
in the near future be on the 600’s per SF.
___________________________________
If by near future you mean 2030 then you are correct.
I do think that Zach is doing a great thing and that he is making the best out of a bad situation. I have included a link to his website on my website… http://www.housingfear.blogspot.com.
If things pick up I may even buy a 35.50 certificate to help out myself! and Zach!
Comment from Daniel
Time: October 24, 2007, 10:50 pm
Chris, with all the respect, your predictions are not well fundamented.
The state of florida will surpass the state of NEW YORK by that time. Property values will be much more than what they are now. probably they will double again.
the housing fear is right now at the worst part, and it will start changing after the elections of 2008.
If you see the new buildings that closed like 50 biscayne, i dont see many units on the MLS or foreclosures.. people are very happy with their units, prices, and will be enjoying the downtown lifestile.
Miami to become Financial Capital of the Americas
Miami, FL – Miami will be transformed into the financial capital of the Americas when it welcomes close to 1,500 banking executives from 41 countries of North, Central and South America, Europe, Asia and Australia during the 41st Latin American Federation of Banks’ (FELABAN’s) Annual Assembly.
I have tons of goods news about the future of miami.
i will still remain positive about the future outcome, and we’ll definitelly see in the future!
good luck to all !
Comment from Chris
Time: October 25, 2007, 12:22 am
Daniel its all about the fundamentals!! GET REAL!!!!
I own a 1 bedroom, 890 Sq foot condo in Michigan in a nice area and I paid $76,000 dollars lol. (it was built in 2002)
I added on a detached garage for 6900 more, so for 84,000 ish I have the same place that Zach paid 375,000 for.
…. IS THAT SINKING IN… $84,000 VS $375,000… And mine is BIGGER and has a GARAGE!
Granted Michigan is not Miami by any means, but are you seriously telling me that just because you have a view of an ocean the place is worth 5x more money.
Give me a frigging break!
Its a 1 bedroom condo for christ sake, No one wants to live in it except young college guys trying to get laid, and single females who make 20K a year waiting tables.
Let me say this slowly so you understand.
… I lived in Miami before the bubble for a year…
…The average family income is like 50K a year…
The average single person in their 20’s makes like 20-30K a year there.
THE ONLY REASON PRICES ARE SO HIGH IS THEY WERE DRIVEN BY SPECULATION, NOT WAGES RISING. The speculation is over so the prices are going to crash way down.
Zachs condo will be worth less than 200,000 dollars by 2010. And he will have a 375,000 mortgage on it.
Zacks condo will not be worth 400,000 dollars untill 2030 when Waitress and Bartenders make 60.00 dollars an hour due to inflation and can afford that payment.
Do you follow my logic.
No one… Is going to pay over 200K for a 1 bedroom EVER AGAIN!!!!… untill minimum wage Triples.
Not sure why this is hard for you to understand but if you bought a condo between 2002-2007 in Miami you are screwed and will not see a profit for decades.
Comment from Chris
Time: October 25, 2007, 12:26 am
Just wanted to add one more thing.
THE ONLY REASON PEOPLE WILL BUY A 1 BEDROOM CONDO IS IF THE MORTGAGE PAYMENT IS CHEAPER THAN EQUIVLANT RENT OF A 1 BEDROOM.
ex.
1 Bedroom rent in my area was $700.00 a month
To own the 1 bedroom = $612.00 a month
THE ONLY REASON I BOUGHT A USELESS 1 BEDROOM IS BECAUSE IT WAS CHEAPER THAN RENTING IT.
WHY IS SOMEONE GOING TO GET A 3,000 a month MORTAGE PAYMENT TO BUY A CONDO WHEN THEY CAN RENT IT FOR 1,000.
GET OFF THE CRACK!
Comment from Chris
Time: October 25, 2007, 12:31 am
Btw,
I am getting married next summer and cannot even sell my condo for 79K right now and people where I live make higher than the median income for Miami… That is how screwed you are.
Comment from iHearYouBro
Time: October 25, 2007, 7:55 pm
…in this case iDon’tHearYouBro. Michigan is Michigan and no one wants to be there. We all want to be in Miami, New York, LA, San Francisco and as reality dictates, supply and demand yield 5x, 10x and sometimes higher multiples over Michigan. I don’t live in any of those above cities and I will work my tail off to save enough money to live there. Unfortunately for Miami at the moment, supply is greater than demand, the market is tumultuous, but as history shows that will fade quickly. …especially because of the strong demand for this Latin American capital. If you don’t mind living in your KICK ARS, stylish, sexy urban loft for 2-3 years you will be just fine, history and demand are on your side. …for those of you that enjoy the more simple life, please stay in Michigan or you might double the price of my future condo.
Comment from iHearYouBro
Time: October 25, 2007, 7:59 pm
Just wanted to add one more thing, too.
As you can see by the current owners of $35 units on condo fiasco, there is WAY too much supply. As soon as the story airs on CNBC and the demand rises, the units will begin to fly off the shelves! So get yours now while you can! Maybe Related will get smart and start selling virtual condo units to ride out the blip??
Comment from Chris
Time: October 26, 2007, 10:52 am
Well you can hear this… in 2000 a 1 bedroom, 1 bath condo with a view of the ocean in Miami cost about 100,000 dollars.
You can keep believing that your condo will go up in value, but with the speculation bubble over the prices will fall way back down to inflation adjusted market normal of about 150K-200K.
Enjoy eating Raman noodles for 20 years waiting for your “investment” to return to what you paid for it.
Comment from Daniel Perez
Time: October 26, 2007, 3:48 pm
Chris,
forget Michigan, people in south america dont even know where michigan is located.
as the other person wrote, There are people all over the world how wants to move to miami now and in the future. And I am not talking about working people, i am talking about WEALTHY PEOPLE that pays 50% or even all in CASH. They dont care about mortgages or interest rates, they just buy because its close by to their countries, its safe, its conviniently located to South and Central America. Its just 2 hours from NYC, and in NYC prices are 3 times here in miami.
Obviously you have a very negative and wrong point of view, that in just 2 years you will be hidding in michigan and watching the miami market go up.
your predictions and points of view are totally based on your negative ideas. At this point, its very hard to explain or talk with you after all whats going on in your mind and your comparizon with MICHIGAN !!!
go to south beach for a 1minute, europeans, latin americans, asians, they are ALL IN LOVE WITH MIAMI !!!!
they all want to buy a vacation condo here !!! they all have money to pay cash, now that the dollar is so cheap for them.
and for south americans, the more their countries are getting worse, the more they want to buy in miami to be close by, do business from here, and have their families in a safe city.
Brickell will definitelly be the elite for banking, high class, and internationa business people, and will have a LOT of demand.
There is absolutelly no way that prices will drop like you said. I have 5 years researching the miami real estate market, and i dont even have a property here, unfortunatelly i still rent, and i am planning to buy now in 2008, where the new boom will start to come again.
good luck to all again !!!!!
Comment from Chris
Time: October 26, 2007, 10:44 pm
The prices have already dropped 50%
Comment from daniel perez
Time: October 27, 2007, 12:59 am
50%??? not in the brickell condos…
no way! maybe 50,000, but not 50%
Comment from Condo Vultures
Time: October 27, 2007, 5:38 pm
I hope it works out. The publicity surely will help put some pressure on the developer. If you can’t close on the unit, please feel free to contact our organization to discuss some possible solutions. Thanks.
Comment from Chris
Time: October 29, 2007, 9:03 am
The 1920’s, in America, were a time of great prosperity. Skilled and educated working Americans had jobs providing numerous fringe benefits, paid vacations and pensions. In addition, automobiles were becoming commonplace for the wealthy and middle class allowing cross country travel. This good fortune set the stage for the Florida real estate bubble.
Starting in 1920, many Americans became enamored by the materialistic and prosperous lifestyle of the time. During this time, the stock market was moving forward at an extremely fast pace. Many investors were becoming quite wealthy. Florida became a hot spot for these newly rich people, who didn’t enjoy the cold. Many whole families took vacations to Florida. It was at this point that tourism started booming and land prices were skyrocketing. Many astute investors took notice and started buying Florida real estate. The population in Florida was growing exponentially and housing couldn’t meet the demand. Florida became the “playground of the rich and famous”. Illegal casinos and drinking parlors became widespread in Miami.
At this point, almost anybody could invest in Florida, even without much money. Credit was plentiful and soon everybody in Florida was either a real estate investor or a real estate agent. In 1922, the Miami Herald became the heaviest newspaper in the world as a result of its humongous real estate advertisements. People in the North heard about the real estate prices “doubling and tripling”, causing a snowball effect. Capital was rapidly pumped into the real estate market. Whole golf communities were developed, such as Temple Terrace. Resorts and retirement communities were developed almost overnight. Mansions were sprawling in every area, as were swimming pools. As always, waterfront property was the most desirable. Florida was seen as a veritable Utopia.
Real estate prices quadrupled in less than one year. An elderly man invested $1,700 in property and by 1925 the property was worth over $300,000! It seemed you could do no wrong by just buying any property in Florida and become a millionaire. By 1925, real estate prices had become so exorbitant that buying land wasn’t affordable any longer. New investors failed to arrive and old investors started to sell. Panic arrived, as it always does, and the real estate market crashed. Prices kept moving downwards as heavily indebted investors tried to sell to avoid bankruptcy. In most cases, no buyers arrived, and the investors were bankrupt from the enormous mortgages.
To make matters even worse, a highly destructive hurricane ravaged South Florida in September 1926. The 125 mile an hour winds eventually turned Palm Beach County into swamp lands. After the storm, a huge tidal wave crashed upon the towns of Belle Glade and Moore Haven. Due to these horrible turn of events, over 13,000 homes were destroyed and 415 people died. Additionally, the arrival of the Mediterranean fruit fly obliterated the large citrus industry. It took years for Florida to fully recover, even through the highly prosperous time from 1925 to 1929. Florida was barely affected in the stock market crash of 1929 and the Great Depression, because of its poor financial state from the start.
Market crashes always occur in the same manner. Regardless of the market, the same simple psychological underpinnings are always at work. People who are caught up in a bubble never look back for historical examples. For this folly, they become paupers.
“Those who cannot remember the past are condemned to repeat it.”
Comment from daniel perez
Time: October 29, 2007, 4:07 pm
Chris,
your explanation about the South Florida history is very interesting. I have been reading a lot, and you are right, this problem happened again in the past, and it will happend again in the future,
but,
time have changed a lot, and miami is not what it was in the past.
Now a days, with a globalized business world, miami is a strategic location for the americas.
As soon as the united states start recovering from the economic problems, and interest rates keep low, and also with some new laws helping the real estate taxes issues,
the south florida market will catch up very fast.
IT will take a few years, maybe 3, 4, but not 30 years.
After the 2008 elections i guess everything will start to sell again at a normal rate, not fast.
once the cheap units start getting out of the market, the real estate values will start to go up gradually again.
but i am only talking about specific areas, not everything.
i am talking mostly about downtown, brickell, and some costal areas.
very interesting to have many points of view.
thank you!!
Comment from BrickellCondoOwner
Time: October 29, 2007, 8:00 pm
You have to be delusional to think that we will ever get back to $600 a sq ft. So many people are leaving Miami it isn’t funny. There are so many foreclosures now in the Brickell Bay area now and its only going to get worse. I heard most buildings like the Mark, The Club, the Vue have over 50 foreclosures each. Condo attorneys are recommending $30k in bad debt expense to handle all the foreclosed condos who won’t be paying maintenance. The few people (like myself) will be stuck using my disposable income to pay for the maintenance that my fellow owners can’t pay. That is income that won’t be spent on local stores, restaurants and other activities.
Comment from Lucas Lechuga
Time: November 1, 2007, 2:09 pm
Wow! Where do I begin?
Chris, you are way off base with your figures. You make a point but I still think that you are way off and that your long-term predictions are insane. I agree with Daniel’s prediction that the average price per square foot of condos in Miami will surpass New York’s by 2030. I actually feel that it will happen around the year 2020. I actually like Plaza on Brickell because it will be a new development on Brickell Avenue that will have sub-$350 per square foot prices. It will act as a floor to the rest of the developments.
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