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projects have ranged from less than
$1 million to more than $150 million.
Investing Opportunities/Finance Tips
• Pre-construction condominium
sales benefit the developers, who use
those sales as leverage to increase
investment in a project. Keep in mind
that with a pre-construction purchase,
there is more flexibility in pricing than
you might expect.
• When investing in commercial real
estate, one should focus on tourism
and infrastructure. Areas near Miami
airport should be considered as they
are well suited for the import and
export of perishable goods between
South America and the US. Office
space isn't recommended due to low
employment rate and slow job growth
in the area.
• Price per buildable unit in Miami has
risen 155% for multi-family
development projects; this indicates
that developers believe strongly that
the value of the finished property is
set to rise significantly after
construction, justifying the risk of
increased development costs.
• Rent in the Miami area is set to rise
as much as 4% in the next year and
continue to rise through 2017.
Developers that are building rental
properties now are taking advantage
of the abundance of financing, due to
a shortage of rental property in Miami,
as well as the inherent stability of
rental properties as an investment.
These developers may plan to sell out
those same properties as
condominiums in the future for big
immediate returns --this is especially
likely for any project being
developed near the waterfront.
• Property owners looking to sell,
currently have the advantage. Cash
deals are common, and prices are
rising. This is a good place to be when
negotiating prices. However, property
value is still very dependent on
location and modernity. Don't expect
to receive offers much higher than the
market average as many potential
buyers are looking for short term
investment gains. ML
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