Brickell: Good Investment? (Miami, Orlando, Kendall: rent, HOA, insurance)

[sigurko]

Thanks for the help guys.
I am paying cash. Moving to miami in ten years is a possibility.
Which condos should I look at?

[tallrick]

Buy gold if you want an investment, buy a home, not shares in a condo if you want to play the market. A crash could cause condo values to drop enough that an investor will buy the whole building and give you pennies on the dollar for your investment. Only a fool or someone flush with free Fed cash would put their feet in the Miami Brickell condo bubble now.

Crain's Chicago Business : Subscription Center

[tallrick]

Originally Posted by LAtoMIA

I currently rent in Miami Beach and commute to Miami Shores. My partner is moving from California in a few months and will be starting work in Kendall.

Hey, how about buying a nice HOUSE on a piece of LAND in Kendall where you will work? You can pick up a decent home for less than 300K and when the market crashes you can still sell for at least 50% of what you paid>

[sigurko]

I don't think Brickell is at a bubble, at least in a 10 years perspective.
Also, I will only admit to buy the property (making me an individual proprietary) and not shares or anything like it.

[tallrick]

You cannot buy property in a building, only condo shares. If the building is seriously damaged in a storm you are thrown on the street. Property is defined as a lot with a building, multifamily can only be a rental unit or condo. That's it. The building is supported by condo fees and when they don't get paid guess what, it goes bankrupt.

http://www.nolo.com/legal-encycloped...ually-own.html

[sigurko]

Originally Posted by tallrick

You cannot buy property in a building, only condo shares. If the building is seriously damaged in a storm you are thrown on the street. Property is defined as a lot with a building, multifamily can only be a rental unit or condo. That's it. The building is supported by condo fees and when they don't get paid guess what, it goes bankrupt.

Buying a Condo: What Property Will You Actually Own? | Nolo.com

Thanks a lot for this info.
I didn't knew this.
If this confirms, i'm out...

[sigurko]

It seems that only if a condo is co-op there's the need to buy shares.

Which condos should I start looking?

[Cubanchic]

Originally Posted by tallrick

You cannot buy property in a building, only condo shares. If the building is seriously damaged in a storm you are thrown on the street. Property is defined as a lot with a building, multifamily can only be a rental unit or condo. That's it. The building is supported by condo fees and when they don't get paid guess what, it goes bankrupt.

Buying a Condo: What Property Will You Actually Own? | Nolo.com

Also remember what is currently going on in central Florida, if the condo prices do drop enough and 80 percent of the condo owners wish the dissolve the condo association, a investor can come in and force you out for maybe 30 percent of you purchased the condo for.

The investors in central Florida are turning some of those properties into section 8 rental housing.

Brickell looks like will be ok, with all of the development that is planned, but a major Hurricane, or another bust after a Major Hurricane with repair assessments or underfunding of Insurance companies and that would be too much of a risk for me.

I rather have a home with no HOA fees or the possibility of losing complete ownership of my home.

[perry335654]

These people who invest in condos are not poor people, they are more then likely multi-millionaires at the least with a diversified portfolio reducing risk factors, they are not putting all their eggs in to one basket and not the one holding the bag as the last purchaser .

[JohnD_fla]

Originally Posted by LAtoMIA

Is this a good time to purchase a condo in Brickell (or anywhere in Miami for that matter)?

Depends on why you are really purchasing the condo. Is it to live in or are you a flipper/investor? If you plan to live in it then buy. If its for investment there are better ways to make money with your cash. How much cash do you actually have? You don't have to answer its just a question I'm throwing out there. Another adjustment is in the wings. If I had a several hundred thou in hand and i wanted to buy I would hold on for a bit. Don't freak out over what the realtors are telling you. Just be patient. The prices are going to calm down some.