Miami Condo Fiasco

Comment from Adam
Time: June 17, 2007, 4:09 pm

when does your condo actually open? What are you looking at to rent it? I’m moving to Miami August 1, and am looking for a place.

Comment from common sense
Time: October 16, 2007, 9:24 pm

One question: if you couldn’t afford to drop the 70k and meet closing costs, why did you do it? Was the sales chick who sold you the unit like a Playboy bunny or something who offered you a little “extra” incentive? I’m personally glad that all the little richboy wanna-bes like you are actually getting spanked now. The only thing you all will be flipping is pancakes.

Comment from Thomas
Time: October 16, 2007, 10:31 pm

Well, to lease it you have to factor in the CAM fees and property taxs. If you have a $2,000 mortgage, plus $1,000/month CAM, plus property taxs, the rent would be hard to squeeze out of a one bedroom.

Comment from Natasha Gill
Time: October 17, 2007, 4:23 am

WOW! You just proved that Miami gets more pathetic by the MINUTE! Not only is it a swamp city with absolutely no class or future; but it’s economy is a joke.

Comment from Nancy
Time: October 17, 2007, 6:42 am

To Natasha Gill: Miami is not a “Swamp City” without class or future!!! and our econonomy is not a joke. Granted there has been some bad press related to bad real estate ventures lately, for the most part this is a growing and thriving metropolis which on occasion has bad press. There are many wonderfull reasons to enbrace this city but you only focus on the negatives and don’t see past your ignorance!!! Where do you live ??? I’m sure it’s a “Paradise” wherever that is, nothing ever goes wrong there !!!!!

Comment from Ali
Time: October 17, 2007, 7:00 am

Yeah well you made a bad move, bad bad investment!…and now you are stuck with a piece of Miami that instead of being a dream home will become your worst nightmare, i dont know if is that you never lived in miami before or you just lost your mind! with a 70k down you could be in a better place, people loves to say they live in a popular “expensive” vicinity but a 1/1 850 sq ft is not the way to go…im sorry every comment you get here is boring and somewhat reprehensive but you should have know better, i bought a piece of your condo, even though was very crazy what you did i am a firm believer everyone deserves a second chance, this will be a lesson you will never forget, good luck on your endevours and god bless you and your family!

Comment from Derek
Time: October 17, 2007, 11:54 am

All of the downtown condos are going to be a disaster; there is no freaking way they are going to sell all of those. They greatly inflated the real estate market, and especially thinking that people will want to live downtown, which by 5pm is empty. At least you have some nice wig and fabric stores nearby!

It will be a meltdown of epic proportions. The developers and the investor/flippers will lose big time. If you actually want one of these condos, wait a year or two. Banks will be BEGGING you to take the mortgages off their hands.

Comment from Mike Cannuscio
Time: October 17, 2007, 4:14 pm

I read about your situation in Inman News. Best of luck extricating yourself from the situation. I hope that you can match the press, traffic and revenue generated by that guy that sold pixels on his site and made a million bucks.

Would it be better for you to leave the $70,000 on the table with the developer or go through a foreclosure and blow your credit score?

Comment from Daniel Perez
Time: October 20, 2007, 1:01 pm

YOU SHOULD DENINITELLY CLOSE ON THE CONDO AND EITHER RENT IT, OR LIVE ON IT. YOU WILL BE AMAZED ON HOW MUCH VALUE THEY WILL START GAINING STARTING IN 2010. THE BRICKELL AVENUE AREA WILL BE TOP DESTINATION WITH WORLD WIDE RECOGNITION. NOT THAT IT IS NOT LIKE THAT YET, BUT IN A FEW YEARS IT WILL BE MUCH MORE IMPRESSIVE.

WITH MARY BRICKELL TOTALLY FINISHED AND FULL, ALL CONDOS, ALL NEW COMERCIAL BUILDINGS, THE GREEN OFFICE LANDMARK BUILDING AT BRICKELL FINANCIAL CENTRE.

THE INVESTMENT IS GOOD, YOU JUST HAVE TO BE PATIENT AND HOLD IT A COUPLE MORE OF YEARS, AND IT WILL BE IMPOSIBLE TO FIND UNITS AT THIS PRICES.

THE BEST OF LUCK !!!!

DANIEL PEREZ.

Comment from Magic City Harvard Lawyer
Time: November 8, 2007, 1:14 pm

I came upon this site today and must say that it is very unique in tracking the condo bust from the perspective of a single buyer (and unit).

I have been documenting these issues closely from a legal standpoint on my blog at http://beckandlee.wordpress.com/

Comment from Rosibel Perez
Time: November 18, 2007, 7:33 pm

I agree with Daniel Perez’s comments. In a similar situation, I would close the unit, rent it out, wait and be patient. Living in Brickell will be impossible in 3 or 4 years. Its your time to look at this as a long-term investment.

Best Regards,

Rosibel Perez

Comment from Ornella
Time: December 20, 2007, 8:33 am

I just came accross this interesting blog of yours and I was wondering what happened, last update I see was on Nov 17th.
How is your situation now??
Have you decided what to do?
email me

Comment from condodetective
Time: December 22, 2007, 9:42 pm

Facinating website. Write David Letterman or Jay Leno. See if you can get on their show. I think you have a chance.
Fact are you should forget Daniel Perez’s advice because everyones is different.
If you have deep pockets and can afford to hold the unit easily for 3 plus years is perhaps will pan out and come back. The fact is if you close you have an upside down mortgage currently, and it would make more sense to talk to a CPA about how you can take a utilize this loss as a write off against any other investments and/or income. If you can receive information from a good CPA about how to write this off you may come okay. You need tax advise at this point and how you can best document this as a bad investment.
You could also find out if there are any class action lawsuits against the developer and have someone take it on a retainer basis. Consulting with a real estate attorney specialist should be a first free consultation. You need to be given your client rights before you sign anything. You need to research everything completely. Also, a one bedroom is less saleable than a two bedroom, so that is another strike against the unit. Good luck, 30 days is more than enough time to research what to do. Remember only you know your personal circumstances on how long you can hold something. You really need deep pockets at this point.

Comment from tiu
Time: January 18, 2008, 12:24 pm

HI.
I just came across your website… I am in the very same position as you.. brought condo at the Plaza and will have to ‘ walk’.
The next issues is trying to get some of the deposit back. I came across some fast talking atty’s…. they claim they can do it. Do not know? What is your view there?
Keep in touch

Tiu

Comment from william
Time: February 24, 2008, 5:27 pm

how much do you want for it

Comment from John C
Time: February 28, 2008, 4:04 pm

Keep the unit. With more than 77 million babyboomers that will become empty nesters, this area of Miami will be thriving withing 2-3 years.

We all have a “herd” mentality. We listen, see, and read all this “noise” and we think the sky is falling. hang in there, and in 3 years you will sell at a nice profit. In 10 years you would sell at a fortune. I am thinking on putting some eggs in the miami real estate market for this exact reason.

John

Comment from jeff morr
Time: April 17, 2008, 10:53 am

You all need to chill Chicken Littles of the world. The sky is not falling. Miami went through a 15 year boom. It was extremely undervalued and still is. The media helped slow sales down for the past two years. Sales have doubled this yeat already.
Miami is the New Manhattan with much better weather and no state income tax. Buy this year or you’ll pay more next year. Just travel and see prices in cold climates to figure it out. We live in the internet age. People don’t need to live in cold climates any more. Where will they be relocating? To the Sunbelt. Hope you have a great day! Its about 75 degrees and sunny here in Miami!

Comment from Farine Oween
Time: May 9, 2008, 10:17 am

Have you ever thought of renting out the place as a vacation rental. There are many people who would pay to stay in a condo like yours. I’d not sure what amenities you have in your condo i.e stainless appliances, high ceilings, close proximity to the beach. But at least you would be getting some income to supplement your mortgage.I would recommend furnishing the place and try to list your place on hotwire if you can. I do not know the criteria for listing in their inventory, but it would not hurt to ask. I would like to know what hotwire says.

Comment from Marcela Mancinni
Time: May 27, 2008, 8:03 pm

Hi!… Im fromo Italy, and I just bought an apartment in the Plaza, a unit on the 36th floor with spectacular city view… 1 bedrom for $250 k, with a loan…. people like you are selling their units in low prices because they want to recover some money back of the deposit… because they cant close… my advice? keep your unit… dont loose any money… rent it, thats it!!… rent it in $1700, and you put the difference to the bank!… is only for 1 or 2 years…. the people that rent it would help you to pay the unit…. and you dont loose any money… see it like a business: somebody helps you to pay your apartment… and in 10 years, your apartment would have a great value, and maybe in that time you have already pay all the mortgatge… remember: is real state, and properties mantain and increase their values!
Good luck!!

Comment from Nick Alkof
Time: June 1, 2008, 12:42 pm

This doesn’t make sense all the units closed in the
plaza, was it postponned. Also your unit considering it is a 1/1 will prob sell now for 240k..i would get out asap..there is way too much supply and for buyers its damn near impossible to get a mortgage to buy units in condo complexes like the plaza.

Comment from Brickell Princessss
Time: June 4, 2008, 9:43 am

So, is that condo (AKA: pigeon hole in the wall) made of gold? The thing you’re failing to mention is why I would ever bother over paying for something, a hole in the wall, that isn’t worth it!

I would price that condo at $88,000…and that’s being INCREDIBLY generous. Why? Because there is plenty of real estate in the USA to be had that offers a lot more architecture, better construction, better neighborhoods, oh, and a city with actual CULTURE for much le$$. Beaches, they’re everywhere baby! Texas has beaches that are a million times better than anything in Hurricane Alley Miami.

In fact, for $200,000 I could buy what Miamians would consider a MANSION in Indianapolis, Indiana. So why would I overpay you for a hole in the wall that doesn’t even have enough closet space to store my luggage between trips?!?

My advice to you, is to grow up next time you decide you’re man enough to play with the big boys. Because the big boys of real estate sure bit your greedy pretentious ass pretty bad. They sold you junk!

Comment from Andres Bustamante
Time: June 4, 2008, 9:49 am

Reply to Marcela Mancinni
Comment from Marcela Mancinni
Time: May 27, 2008, 8:03 pm

Darling, who in Miami has the money to pay $1,700 a month for an apartment? You are proof that Italians have no clue as to what they’re doing or talking about.

What’s this 1 to 2 year time frame you’re coming up with? The Miami condo market will NEVER recover because so much overpriced garbage was built that no amount of buyers will ever absorb the worthless inventory that’s out there. Miami’s outrageous taxes and outrageous insurance rates are caping the market to death.

Furthermore, there is no economy in Miami other than drug dealing and prostitution. Companies are bolting out of Miami like the plague had struck. And they’re doing it for good reasons; because no company wants to do business in the Miami Banana Republic.

I can’t help but agree with Brickell Princess: “In fact, for $200,000 I could buy what Miamians would consider a MANSION in Indianapolis, Indiana. So why would I overpay you for a hole in the wall that doesn’t even have enough closet space to store my luggage between trips?!?”

Garbage always gets built in Miami since people in Miami have such low standards.

Comment from Sebastian Formoso
Time: June 4, 2008, 10:30 am

WOW! I’ve never seen a website with so many people hanging on false hopes of a “recovery”.

Let’s face it, Miami has nothing to offer.

For starters, why would a baby-boomer retire to Miami when the working class can’t even afford to live in Miami? Can you imagine living in Miami on your baby-boomer retirement income? Who’s out there assuming that baby-boomers are showered in cash? Besides, I tend to think that baby-boomers have a lot more taste and class that Miami just can’t match.

Future recovery! Most of you are under the assumption that some mythical recovery will take place in 1 to 2 years. Some in the media are under the assumption that this might even happen in 5 years. Well, I’d hate to be the reality bitch slap, but there will be no 1 to 2 year recovery or even 5. We haven’t even hit bottom yet and once we do, it will take about 15 years for this economy to get back into shape. In the mean time, incomes will be tied up with debt and just trying to meet basic needs (gasoline, food, medical bills). Furthermore, Miami’s economy is upside down with companies fleeing since the desirable human capital pool has fled to bigger better places (including me). Face it, no one wants to work in ghetto Miami! Oh, and it’s not bad press…it’s reality! In fact, out of all the large metros in the USA, Miami has the highest poverty rate in the nation (Miami is the poorest large city). So how can anyone possibly claim that Miami’s real estate will pickup in 2 years?

The Miami is the New Manhattan fallacy. Perhaps this would be true if Manhattan was a 3rd world country; but it’s not! How can anyone actually be out there comparing Miami to any world class city? Nice weather? From June through November, Miamians don’t know if they’ll be homeless from one week to the next thanks to a HURRICANE! So much for nice weather. Not fun to live in terror for 6 months out of the year. Where are Miami’s cultural attractions to compare them to Manhattan? Do you think that the Miami Museum of Art can compare to anything in Manhattan? Get real! What about schools? Do you honestly think that FIU or UM offer anything? No one, and I mean no one, is out there head hunting for the latests UM or FIU graduate. Brickell will never be anything. Have you every tried walking left of Brickell, just one block in and you’re in one of the most crime and drug infested neighborhoods I’ve ever seen. Green spaces; I guess Miami’s Tropical Park can be compared to Central Park!

My advice to you is not to walk away. Run away instead. Miami’s real estate boom was built on hype. Snake oil sales men took advantage of a lot of banks and a lot of foreigners and when the locals got caught up in Uber Town the locals got burnt. When you factor in your mortgage, your insurance, your taxes, and your association fees you are going to be loosing more than you will ever hope to make from a sale in Miami. If you can live in the place then live in it; but then again, who’d want to live in a one bedroom “condo”.

Comment from Nick Alkof
Time: June 4, 2008, 6:00 pm

Reply to Marcela Mancinni
Comment from Marcela Mancinni
Time: May 27, 2008, 8:03 pm

what planet do you live in that a 1/1 condo in miami rents for 1700. im sorry but you are the biggest sucker for buying in especially at a time like this. Italians most be the biggest idiots.

Comment from William
Time: June 4, 2008, 6:05 pm

I don’t see why we have to go and trash each others cities…we are all part of the U.S., sure some floridians got a little greedy and got the “hot potatoe” but surely the lesson has been learned? I’ve been living here for over 40 years and have run into many visitors and never see them complain about our great food, coffee, cigars, clubs or beaches. Miami has a unique cultural diversity that I think would be hard to replicate in Indiana? Indiana…..doesn’t even sound right. I’m sure its a great place but when your in Miami you know your somewhere special, now whether you visit or participate in its dark side is just a matter of choice. I’m sure I could find any of the local drugs and thugs in Indiana or any other state if you look for them. It’s only money my friends, you can get more! At least your sitting at home on your computer taking pot shots at each other……think about it, you could be in Iraq, starving in Africa or locked up in Cuba for trying to feed your family??? 70g’s just not that important!

Comment from Nick Alkof
Time: June 4, 2008, 7:38 pm

miami is a friggin dump id rather be starving in Africa then live in Miami

Comment from William
Time: June 5, 2008, 5:51 am

sure you would……

Comment from slugbelch
Time: June 5, 2008, 3:46 pm

I live in Ft. Lauderdale (Tamarac) and at $285k (with $30k down), your payments will be $1,600/month and an additional $1k will be for everything else (insurance/taxes/etc.). I bought a 3 bedroom house/garage with a huge front and back yard for the same price 2 years ago. Only 10 min to the beach, big deal. Miami is indeed getting bad. I have been following all this down here and everybody is saying that bottom around here won’t hit until late 2009/2010 at the very least. People are starting to get another house while they are low $ and their credit is good, then short sale or dump or walk away the high price one. The only snag to all this is that banks are now much more stingy to give out money. I went to refinance one day and they all told me that whatever loan you get, you need to come up with 20% for starters. That has now become a basic requirement from banks down here.

In every industrial park you enter here, there are “For Lease” signs on nearly every building. People and companies are indeed getting out of here because they see no future with the high cost of living getting even higher. Fixed income people “the elderly” have experienced a huge drop off from moving down here. Don’t see it changing anytime soon, at least for another 5 years to notice any change for the better.

Get out of Miami and get out fast.

Comment from carlos
Time: October 1, 2008, 9:11 pm

miami as a whole is a giant cess pool, and brickell is full of dimwitted brats whose mommies and daddies cater to their every need. fuck the whole thing and get out. the people who think the market will recover in 3 years are sorely mistaken (typical blowhards who will justify their “investment” until they go broke). fact is, you bought into the hype and now you must pay or wait a whole decade at best. good luck, asswipe.

Comment from Dan
Time: October 9, 2008, 7:54 pm

I love Miami very much but I must say that all the R/E sales and investment reps are eating their words now. The ignorance is unbelievable. Miami condo market is overpriced and over built. Period!! 25-30% drop in prices 2008-2009 is the beginning. Daniel Perez’s comment is a prime example of ignorance of markets and overall common sense. Good luck Miami and see you soon in four years.

Comment from Mike Jones
Time: January 6, 2009, 6:23 pm

Don’t walk away from that Condo, you need to run. Obama is promising “Change”. That’s exactly what you are going to get. Everyone will have change, change in your pockets.