Recommended areas to buy for rent in Miami (Coral Gables, University: real estate, apartment)

[Nauniux]

I'm planning to invest in some real estate (apartment) for rent. I do not live in the US but I frequently go to Miami so I was thinking that could be a good idea to buy it there.
Can you recommend any areas that are prone for renting?
Of course I understand that always depend on the prospective renters, if they are medium, medium-high or high class. In that case I'm thinking of average rent of about $1,700 for a 2Be/2Ba.

For example I will discard:
- Little Haiti and close surroundings because of the security issues around.

If you have any other ideas or if I should be aware of something important please let me know.

[flyers29]

As far as condos go Brickell, Coconut Grove, maybe Aventura.

[hurricaneMan1992]

I currently rent in Aventura, and I it's my impression that rents are high compared with purchase prices (which have come down a lot), more so then even Brickell. Especially in buildings like The Venture and Del Prado. I guess this is because a lot of places went through conversion processes (not these ones though), so that the rental supply in Aventura decreased while the number of units for purchase increased. Definitely get a qualified agent in the local area before you decide!

[hmontaq]

The most important thing to take into consideration way before even thinking about buying is condo association fees and taxes. Most condos are below occupancy and that drives up fees. I really like the Neo Vertika downtown. But with high taxes and $500+ condo fees it just doesnt make sense.

A single family home would be a much better buy in my opinion...

[Coconut1]

Most condos in Brickell and Downtown have very hefty condo fees. $500+ a month isn't uncommon. It's scary that it's that high.

Neo Vertika has a lot of potential, IMO. Prices are ultra affordable and the location isn't bad, either.

[boxus]

I personally would never invest in a condo here.

[hmontaq]

The penthouse fees at Neo Vertika are $800+. Even though the potential is there and the prices are good. You have to add all that $$$ together and you lose big time. Could you imagine even if you paid it off you still would pay over $1,000.00 a month in fees and taxes??? Even if you have money thats a dumb move...

[Coconut1]

At this point in time I tend to agree, but even with the boom turned bust, I think Miami's best days are shortly coming and with that I think it all could very well be worth it.

[bale002]

Assessed values for property tax purposes have come down significantly for 2010.

If you can find a buy near 2010 assessed value, and assuming an all cash purchase, your annual yield may be around 3.5%, including property taxes, condo fees and insurance, and barring any major repairs, which is actually not that bad compared to, say, current money market or government bond rates, plus capital gains, if any, in say, 5-10 years, though an even longer time horizon is probably better, like 20 years.

So the investment idea has potential, but still certainly not without risk. It is probably more worth it if you intend to actually live in and enjoy it yourself one day or, at the least, have an opportunity to sell it at the peak of the next bubble, but, as mentioned, that probably won't happen for another 20 years.

The best areas are around the lower leg of the metrorail corridor: downtown, Brickell, Coconut Grove (somewhat in decline), Coral Gables & South Miami (University of Miami), and Dadeland. These neighborhoods host the government center, the main business district, the major university, as mentioned, and the smaller Dadeland business and shopping district, all relatively pleasant areas.

Good Luck!

[hmontaq]

True... The prices took a long time to get out of control. It will take a long time again "if" it happens. So the idea of "Miamis best days are coming" are pretty low. People arent going to forget this. I bought my investment home in Houston in 07 just because I could see it. People like to blame it on lower income people being able to buy houses. EVERYONE that bought a house was upside down. Decent houses were $300,000??? Nice ones were $500,000 to a mill. Completely unrealistic... Thus the bust. Not to mention flippers and "investors".

Like its been said live in it but still smarter to buy single family.