5 Most Important Rules When Buying Luxury Homes in South FloridaMarch 22, 2017
It is not likely that snowbirds and second home owners will see the same returns on their investment as someone who lives in the home year round, or someone who rents it out 100 percent of the time.
However, they should be able to “have their cake and eat it too” meaning owning and excellent home in the sun that pays for itself and makes money for them as well.
Here are five important rules when it comes to purchasing a luxury home in South Florida.
Crap In, Crap Out
When it comes to investing in a home or anything, pick something that cannot be duplicated a million times over. Anything that is produced in the masses has very little if any value and is not luxurious. True luxury properties are highly customized and often include rather unique features.
Identify True Luxury
Miami offers a lot of construction that promises a lifestyle that is sexy and sleek, but they do not always produce. Buildings that have too many units, such as large condos built on small lots with 12 units per floor and cramming 3 bedrooms into 1,300 square feet are not luxury. Look for buildings with large amounts of square feet, excellent views and high end finishes.
Know the Local Market and Trends
Check reports that help in classifying the markets that are going up and the ones that are going down. The reports should use statistics such as, average price per square foot, months of inventory, and percent increases. A good real estate agent will be able to help you decipher the reports in a luxury market.
This is just the first step as there are more factors to consider such as Miami real estate forecasts and South Florida real estate trends.
Avoid General Widespread Advice
Mainstream media is sometimes right on, but other times entirely off. Avoid widespread articles that talk about Miami as an entirety. Every neighborhood market in Miami has large differences in consumer conduct, along with that the price levels generate large differences.
To get good solid advice you will have to dig deep, from city to town, and maybe even street to condo. Often, choosing a Miami real estate agent with experience in the specific neighborhood you prefer will help.
Related: Are You Ready to Purchase a Home?
Don’t Blindly Follow the Crowd
There are multiple luxury condos that have tremendously brought in investors, by promoting themselves as a good investment and bringing in the masses. These units wind up being rented at an 80 percent ratio to being bought and owned.
This is a huge error for any long term investor because they are highly unbalanced and susceptible to price variations as well as a large amount of sell outs.
If you follow these rules when investing in the Miami condo market, your investment should be successful and a financial gain instead of a loss. The best thing you can do is find a top, local real estate agent to provide advice throughout the buying process.