Buying a condo in Miami Beach: Caveats?

[motion]

Wife and I are looking at picking up a studio condo in Miami Beach, across from Bal Harbour shops. They seem too cheap to be true: a 500-600 sq ft studio with a bit of ocean view, in an ocean front building goes for $250K-ish. Monthly association fees are $380, which includes gym, valet parking, internet, etc.

I've never owned anything on the east coast. What are the gotchas? High property taxes? Hurricane insurance? Anything else to look out for?

[dad911]

Take a look at condo docs and the financials. Have they build up enough reserves for the future? See if they have had 'special assessments' in the past (signs of underfunding) or are planning any future repairs/assessments.

If they are new units, are the monthly fees realistic, in line with other like properties?

[Neilk]

I would be wary of buying anything too close to Bal Harbour.

Whatever deal you get will be offset by credit cards charges from the shops across the street...lol

[Cajundaddy]

If you know Miami well and love the area it might be worthwhile. We looked there but ruled it out due to very high crime rate.
Crime rate in Miami, Florida (FL): murders, rapes, robberies, assaults, burglaries, thefts, auto thefts, arson, law enforcement employees, police officers statistics

Also a lot of speculative condo buyers from the NE lost their shirts in Miami during the recession.

[nota]

north end of the beach is far from the miami high crime areas
mostly older retired people up there kind of boring area

250k is high for a 500sqf condo but market is going up now
but ocean front and view boast the price
you can get a house 3/2 with a pool for that kind of money [ but not on the beach]

I know very little about condo's as I would never buy one
but taxes should be about 3-4k and hurricane ins about the same
so you are looking at 12k a year in fees tax and ins

[Scooter]

Originally Posted by dad911

Take a look at condo docs and the financials. Have they build up enough reserves for the future? See if they have had 'special assessments' in the past (signs of underfunding) or are planning any future repairs/assessments.

If they are new units, are the monthly fees realistic, in line with other like properties?

Great advice!!!

[john70t]

Originally Posted by Scooter

Great advice!!!

I second that.

1). Some condos are a co-operative association.
Re-invested, managed, and owned and run by intelligent self-vested owners.

2). Some are overseas conglomerates.
Their main objective is to milk everything everything out of the property.

The changes in taxation, local city politics and local economic situation, past sales turnover, association meeting minutes and politics, plus history of the building is an essential first step into determining the viability of a major investment.

There could be major special assessments due in your future.
caveate

[LakeCleElum]

Originally Posted by motion

What are the gotchas? Anything else to look out for?

1) Having to be in Miami
2) Condo HOA, Fees and Nazi's on the board.

[imcarthur]

Originally Posted by LakeCleElum

1) Having to be in Miami

Miami is not so bad overall. Most of the city is ugly but there are some pockets of nice. Bal Harbor is removed from the nasty bits & a short (but usually very busy) drive to the flash of Sobe. Just across the bridge from Haulover Beach as well.

Ian

[john70t]

Stay in a local motel a few different times of the next year.

Travel. Drive. Walk. Experience. Look. Taste. Smell.
Your nose will tell you if it is right.

[motion]

The only Miami we know is Brickell and Miami Beach. We've driven thru other parts of the city... no thanks. We do like Miami Beach, though. South of 5th would be ideal, but the really nice stuff is insanely priced.

Great advice on the assoc health. I'll make sure to do all the due diligence, even though prices are cheap. Its all the little stuff that can kill ya.

[Christien]

Just saw this in the news this morning:

Rising sea levels could make Florida residents 'climate refugees' - Technology & Science - CBC News

[imcarthur]

Originally Posted by motion

The only Miami we know is Brickell and Miami Beach. We've driven thru other parts of the city... no thanks. We do like Miami Beach, though. South of 5th would be ideal, but the really nice stuff is insanely priced.

And there you have it. The Miami you want is crazy money.

Ian

[imcarthur]

Seriously, you won’t ‘get’ Miami until you spend some time cruising the neighborhoods. South Beach is the Times Square of Miami. In Coral Gables, check out the Biltmore & have dinner at the Old Lisbon, in Coconut Grove, stay at the Grove Isle Inn, Aventura – shop at the mall (they had caviar kiosks last time I was there), drive out the Rickenbacker Causeway to Key Biscayne, head north to the hinterlands of Lauderdale & eat at Chima’s or one of my favorites up there: Bongusto – near the Ferrari dealer. As suggested above, spend some more time in the area.

Ian

[motion]

Ian, we've done most of those things. I agree... there is a LOT of really cool diversity in the Miami area.

Anyway, condo ownership in Miami Beach sounds like death by a thousand cuts. My wife has been reading accounts of "special assessments" after every storm, every time the pool is damaged, etc etc. Sounds like the situation is out of control.