Despite the overwhelming financial hurdle that gripped Miami Beach, the condo market is still thriving considering the increasing number of foreign investors and soaring local demands for such amenities in the city.
Mortgage Crisis Forgotten
For starters, the mortgage crisis that hit Miami Beach greatly affected the condo acquisition as investors backed down from purchasing these luxury residential properties as interest rates of many mortgage loans in the city soars. Starting 2006, the mortgage crisis went through the city like a shockwave.
The increasing number of foreclosure due to borrowers unable to pay their debt contributed steadily to the rising number of unsold homes; which in turn devaluated the value of condos in Miami Beach. Local investors are still having problem purchasing these properties, despite the price decrease, due the affordability of mortgage loans and the devaluation of the U.S. currency.
But now, many financial and real estate experts believe that the city, as well as other areas in the region, are recovering from the mortgage crisis and are on their way to bringing the market back to its normal pace through some inspiring strategies of real estate agents, brokers, and the company themselves.
Foreign Condo Acquisition Rises
The condominiums in Miami Beach are still considered as one of the most popular residential properties according to these real estate experts. Considering that the city is a prime tourist hot spot for many international visitors, this fact contributed greatly to the real estate market of the city.
Since foreign investors are not directly affected by the currency devaluation in the region, they find it quite easy to acquire condos without any problems. The availability of condos in Miami Beach gave these foreign individuals a chance to pick out prime locations that will suit their needs -- whether as a long-term business venture or as a place to settle down permanently.
The local investors are also looking into the possibility of putting their money behind these condo units in hopes to make a tidy profit when the market completely recuperates from its downfall 2 years ago. But for now, these individuals are lying in wait in hopes that the prices of these condo units will drop to make way for a larger return of investments.
Condo Conversion Soars
In order to address the rising demands for luxury condo units, many real estate firms and developers are putting up more condominiums in the city itself, especially in areas where real estate investors find interesting, such as waterfronts, beach side properties, and those in the middle of the city with full access to recreational and business facilities. Apartments and tenements are being converted into high-rise condos scattered all throughout the city.
Vanessa Arellano Doctor