If there is anyone who has been able to take full advantage of the wide range of great opportunities on offer in the Miami real estate market, many will agree that foreigners really do top the list.
In recent times, most of the property buyers who have transacted in the Miami real estate market are those who come from places outside of the United States and one of the reasons mentioned why the current situation is so bad this is due to to the current sales model that now exists in the real estate market.
There has been an increase in development projects that involve a particular sales model that Americans are not favorably accustomed to, unlike Latin Americans and Europeans who are familiar with the cash payment system of real estate options.
An example of a development project that has been using such a sales model is Brickell House in Miami, which allows people to pay quarterly during the construction phase so that buyers can have paid nearly 70 percent of the property. property at the time the project reaches completion.
Americans, on the other hand, are more inclined to wait until completion before putting money into real estate; however, such an approach ends up adding roughly 40 percent more to the buyer’s expenses in the long run.
The sales model in which buyers have the opportunity to pay for the property during the construction phase is one of the most widely used in Latin America. In fact, more often than not, people will be able to find residential real estate developments that have apartments sold even before the finishing touches on the project have been put in place.
In regards to the Brickell House in Miami, the developers were able to sell 190 of the 374 units within the first 90 days of its sale period and 90 percent of those units were sold to international buyers from Brazil, Venezuela, Mexico, China, Russia and Europe.
Such success can be attributed to the fact that the world has once again come to find more value in the opportunity presented by the Miami real estate market to experience the world-class luxury of living in a highly acclaimed tropical paradise setting. internationally. and that has definitely triggered a wave of new development projects within South Florida that are ready to accommodate the high demand of the international audience.
According to a market study conducted in June 2010, there are fewer than 1,500 condominium units left in the Brickell area on the real estate market. If the current trend in property sales continues in the coming months, inventory could very well end up sold out within the year, essentially creating a gap in Miami’s condo inventory.
No one could have predicted that the remaining inventory of Miami condos would have been so quickly absorbed by buyers from around the world and momentum remains strong as demand for high quality real estate options within the region increases, especially as the The opportunity for foreigners to indulge in the luxury of owning beachfront property turns out to be more affordable for them in Miami than anywhere else in the world.
