Condo Glut (Jacksonville, Miami: real estate market, apartments, rent)

[tallrick]

High rise living is nowhere near as desirable as suburban or rural living. People line up to buy properties in older sections of the county with 1 acre or more lots. High rise condos are also the worst places to be in a hurricane. Once the power goes out, you are done. No water, no air conditioning, no way to cook. Oh and with a condo you have nowhere to grow veggies, ducks etc. Unlike a single family home condos require constant expenses through association fees. If a hurricane destroys the building you better hope your insurance company stays solvent. Living in a city is a poor quality life for a family, that is why suburbs were invented, as an alternative to urban living.

[Wild Style]

Originally Posted by tallrick

High rise living is nowhere near as desirable as suburban or rural living. People line up to buy properties in older sections of the county with 1 acre or more lots. High rise condos are also the worst places to be in a hurricane. Once the power goes out, you are done. No water, no air conditioning, no way to cook. Oh and with a condo you have nowhere to grow veggies, ducks etc. Unlike a single family home condos require constant expenses through association fees. If a hurricane destroys the building you better hope your insurance company stays solvent. Living in a city is a poor quality life for a family, that is why suburbs were invented, as an alternative to urban living.

I think when we look at the amount of people living in NYC as compared to say, a rural part of Miami, we will see that more people flock to bigger cities. Economic opportunities and amenities are incomparable.

[elchevere]

I could be wrong but doesn't Miami--or Miami Beach--have a very large single population?..I for one have lived in suburbia and it gets old real fast for a single person.

[AnnRyan]

About 60% of the population of Miami is unmarried (covering divorced, widowed, never married, etc.) Compare that to Weston, where only 48% of the population is unmarried.

However, there are single people who like to live in the country, and single people who want to live smack in the middle of the action. Also, we're seeing a general trend of people choosing to live in urban areas... with more access to jobs, education, health care, entertainment, restaurants, etc. Millennials in particular tend to prefer to live right downtown.

[Lusiphur]

Originally Posted by tallrick

High rise living is nowhere near as desirable as suburban or rural living. People line up to buy properties in older sections of the county with 1 acre or more lots. High rise condos are also the worst places to be in a hurricane. Once the power goes out, you are done. No water, no air conditioning, no way to cook. Oh and with a condo you have nowhere to grow veggies, ducks etc. Unlike a single family home condos require constant expenses through association fees. If a hurricane destroys the building you better hope your insurance company stays solvent. Living in a city is a poor quality life for a family, that is why suburbs were invented, as an alternative to urban living.

Which explains why you can buy a multi-acre ranch with a 3000 sq ft house the middle of nowhere for the same price as a single 2br 1200sq. Ft condo. Oh wait, no, that's the opposite of what you're saying.

The reason cities are expensive is precisely because they are generally far more desirable than the suburbs or the country.

[pslhomie]

Well you need less in the country. That's why people move there.

[Sugah Ray]

Originally Posted by Wild Style

Interesting article. Though I don't agree with the idea that no one will sell at a loss. As things get bad globally they will be forced to sell or default. If rent prices decline, so will the owners ability to cover mortgage and utilities. Which then means you are operating at a loss. It will also be pure hell for those owners who live in their units. Renter mindsets are very different from a owners.


Report: Miami Rents 'Likely to Tumble' as Inflection Point Nears - Curbed Miami

I hope they tumble. Rents are ridiculously high for a semi-decent area in the middle of suburbia. The average rent seems to be $1400 for a stupid one bedroom apartment in the middle of nowhere. Of course you can find cheaper but good luck with your neighbors.

[Sugah Ray]

Originally Posted by Wild Style

To be honest, historically homes were NEVER seen as investments. This is a new mentality, one we can put squarely on the shoulders of that bag of bones Alan Greenspan (Ayn Ryan's disciple). I am not fan of modern/western economic theory. I think Adam Smith was crazy, but that's just me.

As someone who wishes rent prices would tank I think we need to be a little realistic here. It ain't 1950 anymore, not even 1990.

Things have changed Wild Style. Younger people now days have different priorities than what their parents and grandparents had 30 or 50 years ago. Younger people want to live in cities and there will always be demand unless there is some major cultural shift in our society. The problem now days is that renters are greedy and they are asking for more than what people can actually afford.

A correction is possible but I don't see Brickell becoming the next Detroit anytime soon.

[Sugah Ray]

Originally Posted by Wild Style

The talk here (NYC) is that these "investors" are actually laundering money. I hear the same for a lot of the money coming out of S. America and into Miami.

Believe it. There is a lot of money laundering. It's ridiculous. I guess crime pays well in South America. I've seen it with my own eyes and no one gives a s... if you report it. That's how most commercial banks make their money, they rather pay a penalty or "change their name" than give up those profits.

There are honest people in government who report these unusual transactions and sometimes they get attention because some agencies have to pretend they are actually doing some work but for the most part they turn the blind eye.

One good example is the Mossack Fonseca group. I personally believe everyone involved with that organization knew exactly what they were doing and I knew several law firms similar to Mossack Fonseca that were nothing more than money laundering schemes.

Recently I have followed up about some money laundering taking place in Argentina. I read some people involved are trafficking cocaine to Europe so they send the money to the US and from here to other places in the world. I am also aware the same people are trafficking here in Miami so I guess their business is global. Nobody in law enforcement gives a s... even when these people are well known to be connected to narco traffickers.

[Sugah Ray]

Originally Posted by tijlover

All it takes is for some country in Central or South America to elect a socialist, a Hugo Chavez, and the condo's in Miami will sell like hot tamales!

When Chavez was elected in Venezuela, the rich had their bags packed before he was sworn into office, and off to Miami they went! The same happened in Nicaragua, with the Sandinistas, with the Samoza's leading the pack to Miami!

There's lots of Chinese buyers in the U.S., but I can't somehow see them gravitating to Miami, except perhaps for a 2nd home in winter. A good many Chinese are used to a Midwestern type climate, colder winters, hot summers, and they'd be out of place in Miami. But I could be wrong!

It doesn't matter if their governments are socialist or to the far right. Their governments will find a way to make a few wealthy, support criminal activities and move their wealth to the US and Europe. Venezuelans were moving their wealth to Miami way before Chavez was elected.

Those people that Chavez made millionaires or billionaires overnight have bought expensive properties here and hang out with local celebrities. You know the same celebrities who go on TV to tell us how evil the Castros and Chavez/Maduro are. I have known some of these chavistas personally.

Here's something similar:
Venezuelan Oligarchs Live Large in Miami While Thousands Arrested, Dozens Killed at Home - Breitbart