Celebrities Move Over, There is More Money Coming to Town

In 2013 the amount of real estate that is being sold is truly record breaking in Miami-Dade and Broward Counties. Prices are up in every sector of the market, and most especially in the luxury condominium and luxury home markets. The inventory is so incredibly tight that homes that are priced correctly are receiving multiple offers as soon as they are listed or even before if it is a pocket listing. One thing that observers are remarking on is the continued demand. With nearly 160 new projects in developments and international cash buyers ready to put large cash down payments on pre construction condo developments, there is little doubt that this market is still on fire.

 

Celebrities are even taking advantage of the sellers market. Billy Joel sold his home last week for just under $14 million on La Gorce Island, and this week Rosie O’Donnell sold her Star Island Mansion for just under $13 million. Billy Joel will likely break even on the purchase after brokers fees are paid, however O’Donnell will nearly double the money made on the property, since she bought the property in 1999 for $6.75 million and sold it for $12.65 million. While the home was listed last year for $19.5 million, and was reduced, she was advised correctly to sell. Matt Damon also sold his home on North Bay road at an advantage. At the very least this indicates the market is back to 2006 conditions, if not approaching another level, reaching the top echelon of investor.

 

Celebrities are selling, not to leave Miami per se, but because it would be fiscally irresponsible not to. The property values are sky rocketing, and taxes will likely be raised, especially for non-homesteaded waterfront home owners. So who is buying all this incredibly expensive real estate? The answer is billionaires. Alex Rodriguez sold his home on North Bay Road to a group of the Saudi Royal Family, and Billy Joel sold his home to the largest share holder of Saks Fifth Avenue and the owner of Tod’s Shoes. So not only are the celebrities and big name athletes selling their homes, they are making profits, and making way for a newer and vastly more wealthy crowd. This real estate market is most certainly the market to watch, and if you are looking to take part in it, contact us today.

 

Property Insurance Reform to Affect South Florida Waterfront Real Estate Owners

South Florida insurance ratesThe Business Journal recently had an interesting article about how the state’s reforms to Citizens Property Insurance Corp. will ultimately have a huge effect on those living on South Florida’s coasts.

For those of you who aren’t aware, Citizens Property Insurance Corp is a state-run insurer.

According to the recent legislation that the state government approved, protocol for Citizens Property has changed to help reduce enrollment, which officials say will make it less vulnerable during a storm.

This is sure to have a large impact on waterfront property owners all of South Florida!

What South Florida Home Owners Should Know About the Law Change

Under the recent change, residents will be limited to 10 percent annual premium hikes, although new enrollees would have to pass through a number of other insurers before choosing Citizens.

Experts are saying that because of this change, rates will increase overtime since homeowners would need to select private coverage within 15 percent of that offered by Citizens.

Eventually, more insurance providers will be attracted to the area, experts say.

As soon as the Citizens reform was passed, shares from the Fort Lauderdale-based Unviersity Insurance Holdings increased to its highest level in a year.

Universal Insurance Holdings is the largest private insurer in Florida.

Here’s how else the reform will affect circumstances in Florida: Some experts believe Citizens’ policy limit reductions will cause the maximum coverage to decrease from $2 million to $1 million, eventually falling to $700,000.

Some experts think the changes are coming at a bad time and may curb the housing market recovery in South Florida.

After all, investors may think twice if they’re forced to choose private insurance with higher premiums, experts say.

That could in turn call the housing market recovery to slow down or stop altogether.

What’s more, the reform forbids Citizens from covering new coastal construction after July 1, 2014. This may have a direct impact on such South Florida coastal communities.

Still, some experts say the changes to coastal construction coverage may actually end up benefiting the less expensive condominiums in Brickell and Downtown Miami.

South Florida Luxury Real Estate For Sale

What do you make of the recent legislative changes concerning Citizens Property Insurance Corp?

I am always happy to offer straight-forward advice and providing you with such useful home-selling resources as:

Until next time,

Scott

 

Boat Docks Available for Sale for the First Time at Porto Vita in Aventura Florida

The Porto Vita luxury condominium community recently made a limited number of boat slips/docks available to its residents.

This is fantastic news for Porto Vita condominium owners who can now have luxury South Florida condominium living as well as the convenience of owning one’s own boat dock just steps away with easy access to the Haulover Ocean Cut.

With this new offer, Luxury South Florida condominium owners can have the best of both worlds!

Living in a South Florida Luxury Condominium

Residents in the North Tower at Porto Vita have the first chance to invest in one of the boat slips/docks at Porto Vita.

Here’s more information about this incredible offer:

  • 60 ft length boat slips
  • 18 ft beams
  • Price: $75,000

Investing in South Florida Real Estate

The fact that residents at Porto Vita now can own their own boat slips and docks is just icing on the cake for residents living in one of the most luxurious condominiums in Aventura.

Porto Vita, which features two towers, is the epitome of South Florida luxury living.

This Aventura condominium offers its residents floor plans ranging from 2 to 5 bedrooms and 2,250 to 6,000 square feet.

Amenities at this cosmopolitan community include:

  • Spa facilities
  • Community swimming pool
  • Tennis courts
  • A state-of-the-art fitness center, featuring massage therapists and personal trainers
  • Valet and concierge service
  • Billiards
  • And so much more!

Contact me to learn about available listings at Porto Vita – including my recent listing  for a 3-bedroom, 3.5-bath luxury condominium at Porto Vita.

I’ll help to make the South Florida real estate transaction process easier by providing you with such helpful South Florida home buying resources as:

Until next time,

Scott

The Point of Aventura “Sold Price Per Square Foot”

The Point of Aventura is a waterfront community comprised of five towers and courtyard homes located in the heart of Aventura Florida along the Intracoastal waterway. Amenities include Intracoastal pool, Club and Spa (cardio and weight room), tennis courts, childrens playground, game room,  restaurant and salon.  Each tower has unique views to offer of the  Atlantic Ocean, Intracoastal and City.

The Point

Highest and Lowest sale per/sq.ft. in the Past 6 Months
– Highest: Atlantic II Unit #2401 sold for $322 sq.ft. on 8-14-2009 for $850,000 (see unit) 21150 Point Place #2401-6244

– Lowest: Atlantic I Unit #704 sold for $197 sq.ft. on 5-26-2009 for $625,000 (see unit)

See all closed sales in the past 6 months

A really great tool for determining the list price for a property is to find out what the current Absorption Rate and Months Supply of Inventory is at the time.  It is beneficial in assisting  Sellers and Buyers to better understand the market and forecast trends.  Absorption rate is the time it takes to sell the current inventory at the present rate of sales, currently the absorption rate for The Point Condos is 3.92 p/month, therefore on average 4 listings are selling every month.

When it comes to Months Supply of Inventory a  supply of 6 to 9 months is optimum and anything over 9 months is generally considered a Buyer’s Market.  Currently there is 13 months supply of inventory at the Point.

For information on active listings or additional information please contact me anytime.

Porto-Vita Aventura Florida

Porto-Vita is an exclusive community located on the Intracoastal waterway and across from The Fairmont Turnberry Isle Resort & Club in Aventura Florida and is considered one of the elite (higher end) developments in South Florida. Porto-Vita offers two condo towers, mid-rise condos, as well as townhomes directly on the Intracoastal waterway. Porto Vita is a Lifestyle with the most ultimate amenities including The Villa Grande Club and a 21 slip private marina. Location is everything, between both infrastructures of Miami-Dade and Fort Lauderdale Florida and minutes from shopping at “The Aventura Mall”, “The Shops of Bal Harbour” and South Beach.

Current Market Data:

Active Condo Listings: 21 (List Price Range from $1,149,000 to $6,000,000)

Active Townhome Listings: 1 (List Price $2,495,000)

There have been 3 closed sales in the past 12 months at Porto-Vita and the highest price was a condo which sold for $3,600,000 in January 2008.