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Old 04-20-2017, 01:25 PM
 
26 posts, read 26,987 times
Reputation: 55

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I bought a house in Miami around 1999 for 80K and change, in a decent SW neighborhood too
Went away from Miami until around 2010 and came to find the ridiculously high real estate prices
Today that very house that cost 80K plus is valued at $240K
When did real estate get so expensive in Miami?
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Old 04-20-2017, 01:56 PM
 
Location: Florida
1,049 posts, read 960,282 times
Reputation: 940
Homes appreciate over time, what do you expect? My family owned a home in Northern VA that they bought for $200K in the early 90's. They sold it 10 years later for $450K and it's probably worth almost $700K now.


To answer your question though, Miami has seen tremendous growth over the last 15 years, and with growth comes higher home values and thus prices. Have you seen downtown Miami now? It's about 5 times bigger than it was in 1999.
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Old 04-20-2017, 04:36 PM
 
Location: Montreal/Miami/Toronto
3,197 posts, read 2,652,593 times
Reputation: 3016
Quote:
Originally Posted by suboxonedoctor View Post
I bought a house in Miami around 1999 for 80K and change, in a decent SW neighborhood too
Went away from Miami until around 2010 and came to find the ridiculously high real estate prices
Today that very house that cost 80K plus is valued at $240K
When did real estate get so expensive in Miami?
Prices started to increase after that first boom from 2005-08 and now again, it's due to foreign investors building a tonne of condos. Many units sit empty downtown/Brickell as well and are just used occasionally, yet they build more and more this driving prices up. This is not only happening here, there are many places where the situation is even worse.
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Old 04-21-2017, 06:15 AM
 
1,473 posts, read 1,328,483 times
Reputation: 549
Hedge funds and very rich people invest in brick, plus, Miami does not have much space left.
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Old 04-21-2017, 08:05 AM
 
1,257 posts, read 1,865,135 times
Reputation: 690
I have owned my current house for two years and it has gone up in value almost 50K
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Old 04-21-2017, 08:22 AM
 
Location: Heartland Florida
9,324 posts, read 26,743,113 times
Reputation: 5038
It started with drug money in the late 70's. The recession of the late 80's put a lid on it and hurrucane Andrew crushed the bubble in the southern part of the county. The Fed's insane money pumping scheme caused a tech stock bubble and was redirected to a real estate bubble. It tried to go back to normal in 2008 but the Fed came back again to push insanity back to Miami.
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Old 04-21-2017, 10:04 AM
 
1,257 posts, read 1,865,135 times
Reputation: 690
One of the drivers are investors from China and South America. Not sure how long that bubble will last but it will burst sooner than later. I don't think they understand how our crappy tax laws work nor do they understand the concept of HOA's. They buy no matter what the price is and don't consider how much taxes they will have to pay until it is too late.
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Old 04-21-2017, 10:11 AM
 
Location: Florida
1,049 posts, read 960,282 times
Reputation: 940
It seems some of you are missing the point. Real estate appreciates over time and depending on the location's growth can appreciate considerably more than the national average. Yes there can be bubbles, dips in home prices, etc. But in general home prices will always see an upward trend, especially after 15-20 years, when a lot can happen.
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