1. Home
  2. Investing in Miami Luxury Real Estate? – My 5 Golden rules for Luxury Condo buyers in South Florida.

Investing in Miami Luxury Real Estate? – My 5 Golden rules for Luxury Condo buyers in South Florida.

December 2, 2016

I recently sat with a client in their condo who bought their unit 10 years ago at the previous height of the market. We sat down to talk brass tacks. This was a second home that was used 3 months of the year. Looking over their financials I realized that they had actually lost money over the last decade. How could this be?

I personally have handled clients who in the 10 years have taken what amounted to the same dollar investment and tripled their money!

Admittedly, snowbirds and second home owners are unlikely to see the same investment returns as someone who is using the property all year round as a primary residence or those who rent it out 100% of the time but they should and can ‘have their cake and eat it’ which means having a superb place in the Sun which pays for itself and in many examples ends up making money for the owner as well.

This leads me to explore what is the best Luxury Condo for second home owners or ‘Snowbirds’?

For this I have 5 golden rules. I will point these out then lead to which projects I currently like.

5-1

My 5 Golden Rules to Invest in Miami

 

1 Crap in. Crap out

I always say that when it comes to investments, chose something that cannot be replicated 1000% times over. Mass-produced anything holds little to no value, it is not luxurious. Crap in, Crap out.

2 Recognize True Luxury

In Miami we have seen so much construction and although much of it promotes a glossier, sexier lifestyle, it does not always deliver. Buildings with high density (lots of units), sometimes a huge condo on a tiny lot and buildings in which you have 12 units per floor and 3 bedrooms cramped into 1,300 SF. This is not luxury and should not be accepted as such, no matter how it is portrayed in renderings. I won’t name names in my blog, but if you call me I will tell you my opinion and give examples of condos to avoid.

3 Know the Local Market and South Florida Real Estate Trends

My 2016 Miami Real Estate Report and other reports help identify which markets are going up and which are going down. By using measurement indicators like: ‘Months of inventory’, ‘Price per SF averages’ and ‘% increases’, I can start to guide you on where to focus. I say ‘start’ because this is the first step and there are more variables to take into consideration moving forward such as South Florida real estate trends and Miami real estate forecasts.

The 2016 Miami Residential Real Estate Report 
Downloaded more than 35,000 times!

4 Understand the wider market but avoid generalized advice. It won’t serve your specific needs!

It is often said that mainstream media have a lot to answer for. I have come to have a love / hate relationship with mainstream real estate news. Sometimes it’s really spot on, other times it’s so completely off track I cannot help but either laugh or want to scream. Ultimately, avoid generalized articles that talk about Miami as a whole. I have come to appreciate that within every neighborhood market of Miami, there are huge variations in consumer behavior, and within that price levels create huge differences. If you really want to get good solid advice you have to drill way down. From city to town to street to condo and sometimes even floor level. Please see my end of year 2016 Report for a better understanding.

5 Don’t follow the masses blindly

‘If every investor is running in one direction you run in the other’ OR as my mother would put it ‘If everyone ran off the cliff would you follow them?’

Sheep do not get rewarded they get slaughtered! There are a number of luxury condos that have overwhelmingly attracted investors. Promoted as ‘good investments’ and bought up on mass, these units end up being rented with a 80% tenancy ratio to home owners. This is a big mistake for long term investors as they are highly unstable; prone to price fluctuations and large scale ‘sell outs’. Investors buy on mass and often sell on mass.

Miami Condo Projects I actually like!

 

With so many projects that fall into the traps mentioned above, which projects do I actually like.

When it comes to resales, give me a call, there are many.
When it comes to pre construction there are really just a few. Here are 2 of my favorites.

Park Grove – Located in Coconut Grove

This brand new project is located on a 6 Acre site, with never to be obstructed water views, a low density ratio and 12 ft ceilings. The condo project is a master piece by award winning architect Rem Koolhas and an excellent developers’ team. This project is 100% unique and located in a superb neighborhood and location.

 

READ MORE DETAILS ON PARK GROVE HERE

Eighty Seven Park – Located in Miami Beach just below Surfside.

The only Miami condo that has South views over a park and the ocean, an amazing 270 degree (if not 360 degree) views for most unit owners, with a low density, and created by award winning architect Renzo Piano in collaboration with an excellent team of developers. This 100% unique project is located on a large 3 acre beachfront site in a genuine and authentic Miami Beach neighborhood.

READ MORE DETAILS ON EIGHTY SEVEN PARK HERE

David Siddons is a top performing Miami Real Estate Agent.  Ranked for production within the top 1/2 of 1% of agents nationwide. He is also an industry analyst and creator/author of several real estate guides – The most recent being the end of year 2016 Miami Real Estate Report. He has previously reported Miami Real Estate news for CNN, The BBC, Miami Today and The Real Deal to name a few.

As an independent realtor I will always try to get the best deals for my clients and show them the true value of an investment

David Siddons | +1.305.508.0899 | David@siddonsgroup.com

Search related videos

Education is the Key Driver of our Success | How A Successful Real Estate Agent Educates the Market

Two Top Miami Real Estate Agents about Smart Condo Investments

Touring the Upper Penthouse B at Park Grove

A Day in the Life of a Park Grove Resident

David Siddons walks you through the neighborhood of Coconut Grove

Living in Coconut Grove? What is it like to live in the Grove?

The Best Realtor in Miami – We Do What They Can’t

The Real Estate Relocation Guide to Miami | By a Top Miami Realtor

The David Siddons Group | What we do and what makes us stand out as Miami Realtors

What are The Best Miami Condos for Sale in 2019?

What Makes Anyone a Really Good Miami Real Estate Agent?

The 2019 Miami Real Estate Forecast: Our Accurate Market Predictions

The Most Important 20 Lessons Learned From 10 Years in Miami Real Estate

Relocating to Miami – The 2019 Tax Implications of Moving from NYC to Miami

David Siddons on the takeaways of his 2019 Miami Real Estate Forecast

Are You Relocating to Miami? | Watch our Relocation Video by a Miami Top Realtor

What are The Best Coconut Grove Condos for Sale in 2019?

Park Grove in Coconut Grove | The Lobby

Park Grove in Coconut Grove | The Gym

Park Grove in Coconut Grove | The World Class Spa

Park Grove in Coconut Grove | The Cinema and Private Screening Room

Park Grove in Coconut Grove | The Resort Style Pool

Park Grove in Coconut Grove | The Restaurants

Park Grove Broker Video

Park Grove Coconut Grove Units for Sale | The Amenities

The Number 1 Neighborhood in South Florida to Raise a Family

The 10 Best New Condos in Miami – By a Miami Top Producing Real Estate Agent

Park Grove in Coconut Grove – A luxury condo in a high-end Coconut Grove

Is it Time to Downsize From Your Big House?

Coconut Grove, Park Grove & The Marina in Coconut Grove

Why are the weathiest families in the USA looking to buy in Coconut Grove?

Park Grove Kitchen Finishes by Miami Real Estate Agent David Siddons

A Look at the Park Grove Pre-Construction from the Rooftop by David Siddons

David Siddons Interview on Coconut Grove and Park Grove

Park Grove

Register
  • Thank You For Registering

    Just a few more details so we can help you

    (All fields are required)

    When are you looking to purchase?
  • Thank You For Registering

    Just a few more details so we can help you

    (All fields are required)

    Need assistance with financing?
  • Thank You For Registering

    Just a few more details so we can help you

    (All fields are required)

    Need to also sell your property?