advise for buying a house - Florida (Miami: for sale, foreclosures)

[wespinozat]

Since 2004 we've thinking to buy a house in Miami or surroundings. However with the boom price it was never possible.

Now it seems that the prices in Miami and other cities in FL are stable.
However my question is whether this tendency would go still down or up.
Is it a good idea to invest there?

[SRQ single]

Regardless of financing or cash purchase I'd rent first to be sure I liked the area and became familiar with areas I was looking at...
Then if I was a cash buyer I'd continue renting and wait to see if they do come down cos that is a big gamble and no one is able to know how it will turnout...And if I invested my money wisely would offset the price spread and at least cover my rent.
Now if I was financing my home I'd make an offer on the ones I found that I liked cos I think rates will go up maybe even as high as the they were in the 80's. This is just my gut feel and nothing is ever written in stone...

[miamiblue]

Definitely rent first as SQR says. I wouldn't necessarily assume the market to be stable just yet, especially in the Miami area. Don't forget to research property taxes and homeowner's insurance (if you can even get it) costs, as they run very high in this area, and most parts of Florida, these days. These costs tripled for my parents (who have lived in the same house in Miami for 30+ years) over a year's time.

[bale002]

Originally Posted by wespinozat

Since 2004 we've thinking to buy a house in Miami or surroundings. However with the boom price it was never possible.

Now it seems that the prices in Miami and other cities in FL are stable.
However my question is whether this tendency would go still down or up.
Is it a good idea to invest there?

Such a blanket statement as 'prices in Miami and other cities in Florida are stable' is hard to reconcile with a very complex reality. It really is hard to measure the gap, especially in southeastern Florida right now, between asking prices and actual transaction prices across a broad spectrum of specific locations, properties and price ranges.

I would feel more comfortable in saying that the situation is still very much in flux: property tax proposal, insurance issue, still potential hurricanes, buy prices way beyond the reach of average local incomes, possible recession or at least sluggish growth, possible rise in interest rates in the face of stagflation.

All these variables are uncertain right now.

Invest? What does invest mean? If you can put 20% down on a property, carry conventional mortgage (no voodoo bull), taxes, insurance, HOA fees and maintenance, rent it out, and have positive monthly cash flow, then maybe it's a good "investment".

If you can afford to buy at today's asking prices and hold for 10/20 years, it may be a good "investment".

Also, Florida is a big state with significant regional differences, so what goes for Miami and southeastern Florida doesn't necessarily go for other regions and cities in the state.

Good luck!

[suzycue]

Originally Posted by wespinozat

Since 2004 we've thinking to buy a house in Miami or surroundings. However with the boom price it was never possible.

Now it seems that the prices in Miami and other cities in FL are stable.
However my question is whether this tendency would go still down or up.
Is it a good idea to invest there?

what areas interest you in buying? what is your price range? Do you have children?

[eufo]

Originally Posted by wespinozat

Since 2004 we've thinking to buy a house in Miami or surroundings. However with the boom price it was never possible.

Now it seems that the prices in Miami and other cities in FL are stable.
However my question is whether this tendency would go still down or up.
Is it a good idea to invest there?

I'm assuming by your wording that you do not live in South Florida.

Most analysts think prices will continue to fall for the remainder of 2007 at the very least. I personally think they will fall for much longer than that.

Out of curiosity, how were you planning to use the home?

If it's as a primary or secondary residence that you plan to keep for many many years, then its ok to buy if you can afford it.

If it's as a rental property or speculative, I would surely wait.

[Chelito23]

I would say no...not by a long shot. If you are strictly looking for an investment opportunity, that ship has sailed. Prices skyrocketed and are most likely stagnant until some majors players shake things up
(tax relief, massive foreclosures, hurricane, resolution of WIndstorm insurance and higher local wages).

The prices haven't come down, which is why the homes aren't selling.

The homes just are NOT worth what people are asking for them. If they were, the market would still be going gangbusters. They aren't even close to what they are worth. With that said, I think they prices will go down in time, but nowhere near the pre boom prices. Maybe down 10-20%.

If you are willing to live in the home and can afford the mortgage, then it may be a smart choice long run (20 years). Otherwise, it is not the time to be "investing" in properties in South Florida.

[rjdeviner]

Buy low sell high

[doggiebus]

Originally Posted by Chelito23

The prices haven't come down, which is why the homes aren't selling.

The homes just are NOT worth what people are asking for them.

I was just thinking the same thing, the homes in my area our still getting more than 2005 prices, somehow. And those homes that are on the market for awhile are just holding out hope on getting that 2005 price. So I totally agree prices haven't really haven't come down much.

[HGONZ001]

Price will continue to go down because people are not buying houses at the ridiculous high prices we have today. I just checked on a house I sold three years ago, the new owners put it up for sale two years ago for $499,000. Yesterday I drove by the house and it was still up for sale, but they had lower the price to $450,000. That house will never sell for more than $300,000. My advise, don't buy in Miami yet. Maybe wait until prices actually go down and then go ahead and buy. Good luck!