All Forum Posts by: Joe Biscaha

 Ray I'd like to provide a different perspective on your statement about overbuilding. We are no where near building the same amount of condos built in the last 2 market cycles. Look at the Miami Report by ISG World. No one is predicting a condo crash.

In my experience working with the new dev sales agents they would never ever provide any STR data or forecasts. If they provide forecasts it could be considered an "investment" and not Real Estate. It would have to be a 3rd party like a property manager or a Realtor who is providing the data.

I know you passed on this project but you mentioned that it's selling at a 30% premium compared to South Beach, which is interesting, could you elaborate on how you arrived at that number?

As you know 72 Park is a new construction project with unique features and amenities that set it apart from other condos. Currently there are no similar new construction projects in South Beach to make an apples-to-apples comparison. So I am just curious to learn ;) 

Like I said in my post earlier, my clients who bought are looking at STR revenue, they want a place to stay in Miami when they're in town, and they're betting on future price appreciation; long term buy & hold play.

Hi @Account Closed You are correct there is no "comp" for this building, there are just no condos in the area that are similar to a product like 72 park. Carillon is not a comp, its 1958 construction. Looking at hotels can give you an idea but its not an accurate comp. The hotel rooms aren't condo units and dont have kitchen, fridge, etc. 

My investors who are analyzing 72 park are looking at STR income and also betting on future price appreciation. They see the value in the neighborhood and see prices continuing to go up. The neighborhood has lots of room to grow and the city is improving the infrastructure. The area is attracting Michelin star chefs, etc etc etc you heard the developers sales pitch.

Regarding the # of new STR projects: it feels like there is going to be oversupply. I mean everywhere you look it seems like another condo building is going up. But did you know that in this current cycle (2021+) we are actually under building new condos compared to prior cycles (2000's-2010's, 2010's-2020). In past cycles we'd see anywhere between 100-270 new buildings... in this current cycle we are only at 46 buildings.

@Account Closed I like 72 Park in North Beach. It just topped off and will be ready next year 2024. 

 Hi Aleksandar, You can hire a buyers agent/realtor to represent you or work with a real estate attorney to do draft the offer for you. Either way you are going to be paying someone to represent you. I recommend working with a realtor so they hold your hand through the process. 

I have been following this pre-construction project for the past few years and there have been a ton of issues. It was supposed to open the end of 2021 but the developer went into foreclosure in 2022. Its my understanding that none of the units have been sold. Also, almost every unit does not have windows that face the outside, the windows all face inside. Buyer beware. 

@Roxan Wais-Shirley First, Take a look at the Miami Beach STR map. Most condos do not allow short term rentals. The condo buildings that do allow STR are mostly going to be condo-hotels (think W Hotel, Roney Palace, 1 Hotel, etc.) and these buildings do not qualify for conventional financing. Most investors who buy STR properties in Miami Beach pay cash.

@Aleksandar Milosevic elaborating more on the two suggestions you mentioned. 

1. Option #1 Buy a Condo in Miami Beach: You could buy a condo to live in now and maybe rent out later. This way, you won't pay rent anymore, and you might gain equity if the condo value increases. Since it is your primary residence you will be able to take advantage of a lower down payment and better interest rate. 
2. Option #2 Invest in a Property Elsewhere: You could buy a property in a cheaper area and rent it out for income. You would still pay rent in Miami Beach, but you'd make money from the other property. This option needs more work, like managing the rental property and you will be required to put down a larger down payment and a slightly higher interest rate. 
3. Both choices have good and bad points, so think about what's most important to you. If you need more help or want to talk about finding a property, feel free to contact me.

@Julian Fanghanel For a Brickell condo the type of policy you need is called an hO6 policy, it covers inside the unit to the walls. From the walls to the outside is the responsibility of the condo's master insurance policy. For example if a pipe breaks in the walls it is normally the condo's responsibility. I have a few insurance brokers I work with so you can shop around and get the best rate.