What are the biggest changes in Miami since the economy tanked? (real estate, foreclosures)

[muscleman305]

I don't go out clubbing as much as I used to, but I spent last nite club hopping in south beach and noticed mostly business as usual but on a slightly smaller scale. The excess was still there but the VIP rooms full of champagne popping showoffs seemed to be tamed down a notch. I'm interested to know what other changes have people noticed in the South Florida area from last year to today?

[EnjoyTheSilence]

Originally Posted by muscleman305

I don't go out clubbing as much as I used to, but I spent last nite club hopping in south beach and noticed mostly business as usual but on a slightly smaller scale. The excess was still there but the VIP rooms full of champagne popping showoffs seemed to be tamed down a notch. I'm interested to know what other changes have people noticed in the South Florida area from last year to today?

I work closely with many hotels in South Florida and trust me when I say that occupancies are WAY down on last year.

Fingers crossed that the recession will start to ease by the end of the year...this has been a really bad time.

[tallrick]

Whenever I go through Miami I have noticed no changes. The whole area is still in denial and expects a return to the stupidity of the 80's-2000's by the end of this year. Everyone seems confident that government pork money and foreign investment will fill the bubble that has been threatening to deflate this year. I for one hope that the crash finally hits Miami as it will be the only thing that can save the area.

[EnjoyTheSilence]

Originally Posted by tallrick

Whenever I go through Miami I have noticed no changes. The whole area is still in denial and expects a return to the stupidity of the 80's-2000's by the end of this year. Everyone seems confident that government pork money and foreign investment will fill the bubble that has been threatening to deflate this year. I for one hope that the crash finally hits Miami as it will be the only thing that can save the area.

I have to agree with you Rick. Sometimes, a place has to hit rock bottom before it improves. Miami has been living a lie for decades; false opulence, dirty money, fraud and speculation galore.

The only thing I really fear at this stage is a huge crime wave. Many of the scumbags from the 70's and 80's are still here; they've bred and in addition to that, there are many more people here now capable of committing those kind of crimes.

[gregm]

Originally Posted by BCreass

I have to agree with you Rick. Sometimes, a place has to hit rock bottom before it improves. Miami has been living a lie for decades; false opulence, dirty money, fraud and speculation galore.

Gosh that sounds like DC of NYC.

[intelfan11315]

Cocaine Cowboys round 2! Miami will be the most flourishing city in the US again It is a real possibility, with this worldwide crisis the Colombian drug lords are starting to make a rise again, although Uribe is doing a lot of work to keep them under control. Miami should be praying the next Colombian president is as good as Uribe.

[muscleman305]

My dad has been trying to buy a handy man special for the past 3 months and he said that every realtor he has dealt with refuse to budge on their ridiculous prices and play dirty games with you. The latest game is advertising a dirt cheap primo property for the bait and then when they go to show u it they say its been sold but I'll show u a similar one and it turns out to be an overpriced dump.

Also did you guys hear about that condo in NW Miami that owes like a 100k in utilitys and the city finally shut off its water. I fear this is onlyt the beggining, many condos in brickel are in the same predicament.

[tallrick]

It is incredible that speculators are still hoping for another real estate bubble. Even in the Ft Myers area which has been hit hard by foreclosures, investors have been buying properties in a frenzy to snap up the low cost homes. A friend over there who sells real estate has been amazed that investors buy properties that have been falling in value, and in areas where many people have left. Of course Miami takes the cake as to stupidity because those people have no concept of falling property values. Here in the keys prices remain stubbornly high, but I agree that a crash is coming.

Right now interest rates are lower than ever, so nit-wits can still borrow and buy. However, I see inflation becoming a problem. Once inflation kicks in it will be like in the 70's. Interest rates will shoot through the roof as lenders will get cold feet. Imagine loaning money at 5% and having inflation running at 10%. That would be like giving away free money for homes! Lenders will raise rates to over 20% and the whole real estate bubble will implode. While foreign investors are the cause of all Miami's affordability problems I doubt that many will want to risk their cash in a volatile and dangerous place like Miami will be in a few years. Those who do will foolishly lose billions.

[doggiebus]

I have noticed crime is up.

[Ache]

Originally Posted by tallrick

Right now interest rates are lower than ever, so nit-wits can still borrow and buy. However, I see inflation becoming a problem. Once inflation kicks in it will be like in the 70's. Interest rates will shoot through the roof as lenders will get cold feet. Imagine loaning money at 5% and having inflation running at 10%. That would be like giving away free money for homes! Lenders will raise rates to over 20% and the whole real estate bubble will implode. While foreign investors are the cause of all Miami's affordability problems I doubt that many will want to risk their cash in a volatile and dangerous place like Miami will be in a few years. Those who do will foolishly lose billions.

How is inflation gonna take off with so much unemployment?
If you look at the stats globally we are in a Deflationary Depression

Why a 50% Drop in Housing Is Not the Bottom

1) This crisis will be with us for eternity.

2) If the crisis comes to an end... oil prices will rise sharply, GOTO 1)