The Real Estate Mango

What Are Investors Looking For In Aventura Real Estate and Can We Supply That Need

After spending countless hours looking at condos in Aventura with ready and willing investors, certain facts remain as obstacles to seeing our inventories eaten up by eager investors.

First, maintenance costs.  Compared to other cities, our maintenance costs are very high.  This is due to some real factors, insurance that condos have to carry, shrinking reserves in the buildings, necessary repairs and landscaping expenses, salaries of service employees on the site and management fees from the management companies.

Second, property taxes.  Our property taxes are very high.  For instance on a property in Parc Central, a high rise right near the William Lehman Causeway, an 1100 square foot apartment with a sale price of $160k has more than a $5000 a year tax bill.

Rental Market Competition…Many apartments that are not selling, are renting and with many being offered for rent, the investor has to compete in this market, too.  In order to rent quickly, he has to offer a cheaper rent than the next guy so that he gets the renter quicker.  This also cuts into his monthly profit margin.

How Did Investors Do It In The Past?  Before the downturn, investors absorbed all these expenses while keeping their eyes on the rising prices and when they rose to a profit, they sold.  We don’t know when these prices will start rising so investors have to be here for the long haul.

For owner users, there are many terrific deals out there.  Prices are lower than before and interest rates, although they have gone up some, are still low enough to give you a great mortgage rate.  The Interest rate today for a 30 year fixed mortgage is 5.5%.  A very good deal, indeed.

This entry was posted on Tuesday, June 23rd, 2009 at 1:08 pm and is filed under Market Trends. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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