Miami Beach Waterfront Homes Blog

With the current uncertain financial market and credit crisis exerting strong downard pressure on prices in housing market, I’d like to expose some of the best condo deals in South Beach luxury waterfront condos market. Every Buyer today is looking for a “great deal”, but how do we define this in today’s real estate market? One possiblity is to roll prices back to pre-boom prices of 2003-2004. Another possibility is – not so precise formula – is to take an overall price reduction anywhere between 30%-70% off 2005/2006 prices (peak of the real estate bubble).

However, I’d like to highlight what I consider one of the better income valuations for a truly “great deal”, which involves looking at the cash flow from potential rental income. Below are a few waterfront condos I consider to be “great deals” in Miami Beach luxury condos:

Bentley Bay Condo Unit-2211

The Bentley Bay #2211
2/2- 1,250 S.F.- Wrap Around Terrace, Direct Bay Views, with potential monthly rental income ranging from $3K – $5K/month.   Foreclosure Sale Asking Price: $459,000 ($367/SF)

Icon South Beach Condo Unit 1804

Icon South Beach #1804
2/2- 1,536 S.F.- Large Terrace, Intracoastal & Bay Views, with potential monthly rental income ranging from $4K – $6K/month.   Foreclosure Sale Asking Price: $829,000 ($539/SF)

Murano Grande Condo Unit 1809

Murano Grande #1809
2/2- 1,437 S.F.- Large Terrace, Open Views of South Beach & Ocean, with potential monthly rental income ranging from $4K – $6K/month.   Foreclosure Sale Asking Price: $740,000 ($514/SF)

Waverly South Beach condo unit # 804 - SOLD

Waverly South Beach #804
2/2- 1,084 S.F.- Spectacular Intracoastal & Bay Views, with potential monthly rental income ranging from $2,500 – $3,500/month.   Foreclosure Sale Asking Price: $364,900 and Sold/Closed for $330,000 ($304/SF)

My team and I are committed to providing strong value added service to our clients, which means delivering the best purchasing opportunities to today’s buyers of Miami Beach luxury condos.

It’s been a busy month for myself and my team, as we’re seeing strong buyer activity from so-called “Bargain Hunters”.  I’ve intentionally avoided weighing in on the technicalities of the financial crisis and the future impact of the Paulson Plan, as there are many more qualified sources out there to give readers their analysis.  However, now that we are seeing some stability return to the banking sector, I’ve noticed a strong surge in buyers looking to purchase prime real estate properties at significant discounts.  What’s  happening are that the properties in the best locations are being picked up now at prices that range from approximately 30%-50% discounted values from 2005 prices.

Waterfront homes (turnkey) in Miami Beach at reasonable prices are in surprisingly short supply, and these are the first of the “bargains” that have been purchased recently.  For example, I recently conducted a search for a client with a budget of $5 Million looking to purchase a luxury waterfront home (remodeled) on the Venetian, Palm Island, Hibiscus, Sunset Islands or Bay Drive in Miami Beach.  The real choices?  Just twelve waterfront homes!

Also, a few of our latest sales are indicative of the above referenced “deals” that are happening now:

Jade Beach- Prime Location Sale #1
Spectacular Lower Penthouse #4401 “F Line”- 4 beds / 4.5 baths – 3,136 S.F.
Contract Price: $2,475,000  ($789/S.F.)
2005 Sales Price:  $3,400,000 ($1,084/ S.F.)
Today’s Discount:  27%
•    A spectacular 51-story oceanfront tower
•    Designed by Carlos Ott and Fortune Development Int’l
•    Beautiful entrance with cascading fountains, lush landscaped gardens, reflecting pools, and contemporary décor throughout
•    Three-story Grand Entrance Lobby with direct ocean and pool views
•    Located directly on the Ocean close to Bal Harbour Shoppes and Aventura Mall, as well as easy access to Miami and Fort Lauderdale International Airports

(Next door condo Jade Ocean, is completed)

Jade Beach Floor Plan- Unit F

Jade Beach Condo

Jade Brickell- Prime Location Sale #2 (Bank Owned / Pre- Foreclosure Sale)
Spectacular 43rd Story Residence “E”- 4 beds / 4.5 baths – 3,415 S.F.
Contract Price: $1,600,000 ($468 / S.F.)
2005 Appraised Value:  $3,100,000 ($907 / S.F.)
Today’s Discount:  48%

Downtown Miami’s Most Luxurious & Lavish Building, the Jade Residences is a 49-story building offering 326 luxury residences with advanced technology. Spectacular Ocean and City Views, state-of-the-art security system, Infinity edge pool, Sauna, steam room, fitness center, European spa, racquetball, concierge services.
•    49 story architectural masterpiece designed by Bernard Zyscovich
•    Distinctive three-tiered tower offering views of Biscayne Bay, Downtown Miami and Key Biscayne
•    Grand entrance lobby graced breathtaking 21-foot ceiling with contemporary deco

Jade Brickell - Unit E

Jade Brickell condo - Miami

Below are sales statistics for the overall Miami Beach (South Beach) luxury condo market for the past three months :

• As of late July, there are 450 units for sale between $500K and $1.1M
• As of late July, there are 209 units for sale between $1.1M and $2.1M
• As of late July, there are 111 units for sale between $2.1M and $5M
• As of late July, there are 43 units for sale over $5M

Continuum II South Beach – 50 South Pointe Dr, Miami Beach, FL 33139

I’ve received many inquiries about CONTINUUM II South Beach since its opening, so far there have been nine closed sales and one pending sale as recorded on the Multiple Listing Service. This is a significant slowdown in sales activity, especially comparing the re-sales activity that took place with Continuum – South Tower a few years ago. However, the latest sales have been averaging well over $1,000/s.f. for higher floor units. Currently there are 46 condos for being offered for sale at Continuum 2

ARE YOU SERIOUS ABOUT SELLING? – If you own a condo or a single family home (especially those on the water), and have had trouble selling, please call us for a free market analysis. I believe in telling it “straight” to clients (or potential clients), as wishful thinking will not carry the day in this real estate environment.

Once again, the market has shown that it rewards sellers who work with experienced, knowledgeable, detail-oriented, and top producing real estate salespeople. Thanks to aggressive and creative targeted International Marketing Campaigns, we have sold ALMOST our entire Miami properties’ inventory from the first half of 2008.

Home buying, regardless of how intricate it can become is essentially a more up to date form of the system merchants used in the past to sell their goods: bartering. The consumer (or buyer in this case) wants to pay as little as possible and yet the seller is looking for the biggest profit possible. All this haggling would be a lot easier for both parties involved if the real estate market were in better conditions and South Florida homes were still in hot demand which, as everyone knows, isn’t quite the case.

Although one person is looking for more and the other is seeking less, there is a mutual goal: agreeing on a suitable price. While the seller has their own research to do, buyers should do a little bit of problem solving homework before putting an offer on the table.

Owning Miami Beach oceanfront condos often gives owners a sense of entitlement, especially when it comes to determining how much they can ask for it when it’s time to sell. A couple of years ago, an inflated price would be okay but it’s a different climate. If a seller’s initial asking price seems ridiculous, chances are other buyers feel the same so allow some time for the price to come down but do make sure the seller is aware of your interest. Assuming you’re using the services of a real estate agent, they can do this on your behalf and act as the intermediary once the price is reduced to something more agreeable.

The less fellow buyers involved, the better your chances of throwing out competitive numbers to achieve your ideal price. Refrain from giving the exact price you’re aiming for. Instead raise or lower the amount in order to allow yourself room to bargain without having to sacrifice too much, which simultaneously allows the seller to feel as if they’re getting something out of the deal.

If someone else has offered a price you know you can’t match, all hope is not lost. Sellers appreciate it when buyers choose to take on additional costs normally the responsibility of the seller so if you can pay for some of these, there is a very good chance a seller will accept your slightly higher proposal over someone else who offered less.

In one’s lifetime, there comes that point when the thought of buying your first home begins to manifest itself. Alas, buying South Florida homes these days is something many will advise against due to the uncertain status of the real estate market. Yet there are those people who will tell you the complete opposite and passionately explain to you why buying in the current inventory of property for sale is actually wise.

With conflicting opinions and advice coming from both sides, it’s easy to be intimidated by the home buying prospect. You may be thinking, “Okay, I really want a Miami Beach condo by the water to call my own so…should I buy a home right now or not?”

Any real estate agent well-informed in Miami Beach real estate and/or the industry itself will explain to you that during tricky market times such as these, the decision doesn’t come down to an easy yes or no answer. Those people who may have told you that you will be losing money if you buy are indeed correct. Whatever you choose to pay now, you could pay less for in a few months. Also, due largely to the mortgage and foreclosure issue, lenders are playing hardball with borrowers and have become quite selective about who they lend to.

Then again, the prospects could be extremely worthwhile. For one, property prices have gone down considerably which should bring you closer to obtaining that four bedroom home in Miami Beach you’ve always wanted and interest rates on mortgages have gone down which should translate to a more affordable monthly mortgage payment, particularly if you’ve maintained an outstanding credit history.

It can be safely assumed then that there is no real right or wrong when it comes to buying a home. Yes you will lose money and this is something you need to be able to deal with before you do anything else. Sometimes however, it’s not so much the money that matters as it is finding a home to call your own.