Go West..ahem..Miami, Young Man!

[Ries]

Regardless of whether YOU, personally, think its a good idea, I know Portenos are doing it- a friend of mine and his brother just bought two condos in North Miami for under $40,000 each. Yep, there are downsides, and strings attached- both are in buildings which require owner occupancy, so they cant really rent them out.
But since they cost less than a luxury car does in BA, my buddy was willing to take the risk.

personally, I really really doubt that they will go DOWN in value- I think Miami is going to continue to be a desirable spot for a long time to come, and I know the neighborhood they bought in, and, while it aint South Beach, it aint Overtown, either.

And for $40,000, what can you buy in Buenos Aires? A parking space?

 

[Davidglen77]

Whether it´s a good idea of course depends on each person's financial situation and tolerance for risk.

I personally wouldn´t buy a condo in north miami for $40,000 because between the maintenance issues, homeowner's insurance, homeowner's dues, electric bill, property taxes and other carrying costs of condominiums in Florida, it's going to cost a good $600-700 dollars a month MINIMUM just for the upkeep. And then in those areas you MUST have a car, there is no other way to get around. So you either have to keep a car there, or rent one each time you go. Furthermore in North Miami the only thing to do is go out to eat at the 1960's style shopping centers for early bird specials or wander around shopping malls. Not very culturally stimulating.

Just because something is cheap, doesn´t mean it's a good investment. I think a number of people who buy these condos at such low prices are not going to like living there or really find it interesting to visit either. They probably wont go down in value, but wont appreciate much in the short term. If all of the money that one spends in upkeep doesn´t bother you, at the worst you´ll break even.

Like I mentioned in earlier posts, if you want to invest in Florida, stay close to Miami Beach / South Beach in some of the nicer buildings closer to the waterfront. Units in those buildings have gone down in value, however they are not cheap. An apartment that sold for $500,000 dollars 3 to 4 years ago, might now sell for $300,000. Those units can be rented out for several thousand per month at the drop of a hat and represent a good solid investment.

 

[Johnny]

Whether it´s a good idea of course depends on each person's financial situation and tolerance for risk.

I personally wouldn´t buy a condo in north miami for $40,000 because between the maintenance issues, homeowner's insurance, homeowner's dues, electric bill, property taxes and other carrying costs of condominiums in Florida, it's going to cost a good $600-700 dollars a month MINIMUM just for the upkeep. And then in those areas you MUST have a car, there is no other way to get around. So you either have to keep a car there, or rent one each time you go. Furthermore in North Miami the only thing to do is go out to eat at the 1960's style shopping centers for early bird specials or wander around shopping malls. Not very culturally stimulating.

Just because something is cheap, doesn´t mean it's a good investment. I think a number of people who buy these condos at such low prices are not going to like living there or really find it interesting to visit either. They probably wont go down in value, but wont appreciate much in the short term. If all of the money that one spends in upkeep doesn´t bother you, at the worst you´ll break even.

Like I mentioned in earlier posts, if you want to invest in Florida, stay close to Miami Beach / South Beach in some of the nicer buildings closer to the waterfront. Units in those buildings have gone down in value, however they are not cheap. An apartment that sold for $500,000 dollars 3 to 4 years ago, might now sell for $300,000. Those units can be rented out for several thousand per month at the drop of a hat and represent a good solid investment.

Good advise. North Miami is a gawdawful wasteland, but I can see a little bit of logic in buying there at the tremendously reduced prices. If I ever went back I'd research the condo association from top to bottom and buy in South Beach again. But, it will be a long time before any of these places prove to be much of an investment. As an example, I sold my condo (corner of West and Lincoln), for $325,000 in Jan. 2006 and it is now being advertised at $140,000. No takers for the short sale. What a mess and not getting much better.