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Old 05-27-2009, 07:47 PM
 
37 posts, read 213,880 times
Reputation: 23

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Where in FL (i.e., Miami, Orlando, Daytona Beach?) its a good place to buy an investment condo for it to be rented out? Somewhere in a highrise with nice view & to be rented out to responsible folks? (Hence in a nicer professional neighborhoods). Or in Orlando for families & have management company to manage?

Any tips /advice?

Thanks
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Old 05-27-2009, 08:57 PM
 
Location: Heartland Florida
9,324 posts, read 26,672,266 times
Reputation: 5038
Noplace, invest in gold and wait this mess out. A condo is nothing but a risk. You do not need the hassle of being a landlord on property that does not really exist.
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Old 05-27-2009, 09:01 PM
 
Location: MI
1,069 posts, read 3,189,919 times
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Clearwater Beach
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Old 05-27-2009, 10:26 PM
 
Location: Palmetto Bay, FL
50 posts, read 165,816 times
Reputation: 19
If I had the money, I'd invest in STOCKS and wait this mess out. I know of a lot of buildings in downtown/Brickell (both very "professional" areas) that are currently packed with students/models/DJs with roommates. Housing will go up again when 1.) salaries go up or 2.) banks go back to limited documentation subprime loans. Neither is likely in the forseeable future.
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Old 05-27-2009, 10:49 PM
 
2,930 posts, read 7,039,265 times
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I wouldn't invest in properties, this is not gonna get better any time soon. Have the money in cash(at the bank of course) Also with this unpredictable market I would be very careful to invest in stocks unless you can follow up on them everyday.
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Old 05-28-2009, 12:57 AM
 
Location: western East Roman Empire
9,309 posts, read 14,213,469 times
Reputation: 10017
Most likely even if you buy cash, your positive cash flow will be enough to save a bit and cover extraordinary expenses. Any significant gross capital gain will have to wait until the next speculative boom, and no one knows when that will be, so it's a gamble.

From any gross capital gain you need to subtract all expenses, including taxes and maintenance fees, plus opportunity cost, i.e. the income you forgo by not investing in something else.

Usually the best investment is in one's self and in one's own business. On the other hand, if you have time only to research passive investments and if you believe in the very high inflation scenario, real estate may be a good hedge, but commodities may be better.

Having said that, I think downtown Miami/Brickell has the best chance of capital gains over the years: government services (also as a hedge against inflation) and international trade should be a better engine of growth than tourism and the beach.

Good luck!

Last edited by bale002; 05-28-2009 at 01:47 AM..
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Old 05-28-2009, 08:57 AM
 
37 posts, read 213,880 times
Reputation: 23
bale002 -thanks for the positive response (reps).

I will look at Miami / Brickell area. I agree that stocks & International trade will show a positive return in the near future vs. real estate. However, at the same time, I always wanted to own a condo and maybe 5-10 years down the road figure out what I want to do with it. Currently, I am invested in various funds, stocks, still holding on to the job but condo is one investment that I missing, and I feel I can purchase it out now and as long as the rental covers all expenses (i.e., taxes, maintenance, management fees, etc.) I should be good to go.
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Old 05-28-2009, 01:13 PM
 
Location: Miramar
294 posts, read 1,145,901 times
Reputation: 147
I concur with the previous posters in saying that real estate is the worst possible investment at this time. If you've ever taken finance 101, you know very well that you should never accept any investment whose return doesn't reflect incurred risk. If you have extra money to spend, invest it back into your current portfolio of stocks and funds and use your expected capital gains as a down payment on a condo in 5 or 10 years down the road when you actually make the move to Miami. Believe me, prices will not budge much in the next 5 or 10 years after the crash we've just suffered, and there will always be excess supply in South Florida in both good times and bad. You will find what you want when you are ready to come here.

Even if you plan to move into the property later, it's just too much of a hassle to manage a rental property from afar! I know several people (some in my family) who make their living on renting investment property, and let me tell you, it's not as easy as it looks, and not nearly as rewarding as it sounds. I couldn't possibly fathom doing this from another state, even if it meant breaking even on something I were to live in ten years down the road. On top of all that, working with property management firms can be just as frustrating as dealing with unruly tenants who destroy your property. Both will take bites out of your investment, and both will not care.

Last edited by Lost in Translation; 05-28-2009 at 01:28 PM..
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Old 06-26-2009, 10:55 PM
 
Location: Daytona Beach, Florida
501 posts, read 1,875,728 times
Reputation: 505
You and a million other people have the same idea. There are tons of bargains to be had for sure.
In Daytona Beach, there is a luxury intracoastal project called Marina Grande that is in foreclosure (and litigation). Cheapest preconstruction units were $500K. I'm certain they'll be auctioned for a song. The problem is going to be: WHO will you rent it to? What about the HOA fees and property insurance?
Luxury rental communities in Florida are now offering free months and some utilities with reduced monthly rates. How can you compete with that -- and also in an economy where seniors took a hit to their savings in the crash and wages/jobs are decreasing. Tourism/seasonal rentals are way down and highly competitive for listings.
Flipping the property later is also risky because Florida real estate has been driven the past 40 years by retirees with pensions and foreign investors. Those days are pretty much over.
I guess if you want to run with the big dawgs, you better be prepared to pay to play!
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