The Market Always Rules
Interesting article in today’s WSJ about vultures buying condos in Miami; interesting on two points.
First, the article implied that a buyer shouldn’t expect the same good deal from new condo towers built side by side, because the builders cost are different depending on if they were started before or after the last big hurricane season. As a buyer, I don’t care what the seller paid for anything. The market dictates the price. That’s why people are so angry at builders who are discounting houses 30% below the selling price two years ago. Selling price of real estate is dictated by the selling price of recently sold real estate, not the cost of the property in question.
Second, the WSJ showed a picture of high-rise condo buildings along Miami’s beach front. The density of the units on the beach is startlingly high. Unless, I’m coming from a high density residential area, I don’t see why I would want to buy a vacation or retirement unit in such a crowded area. Even if I come from a high density residential area, I don’t see it the desirability of a crowded area. Like my father used to say, “Why do I want to hang around with a bunch of old people?”
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POSTED IN: Being A Boomer, Boomers nearing retirement, Finance
1 opinion for The Market Always Rules
Heinz Dinter, PhD
Feb 29, 2008 at 12:58 pm
Mr. Opdyke hit one nail on the head with his February 28 Wall Street Journal article, “Florida Bust Spawns Vulture Culture.” Thoroughly researched and well explained, the article should carry far and wide. My daily Google News Alert, keyed on “condo vulture,” already delivered responses from five Miami-based media sources that made reference to the well-written piece.
Now to the second nail. There are those “investors” who go after condominiums and condo hotels in an awesomely clever, clench-move fashion: they also go after the control of the condominium association. That is an even bigger price than buying a unit for 40 cents on the dollar. He who controls the vote of the condo’s board of directors controls the purse strings of ALL unit owners, the members of the condominium association. Isn’t that a most clever mutation of a milk cow? Examples abound at my website, http://www.GrandLifestyle.com, and in particular focus on the subject at the media center, http://www.GrandLifestyle.com/media.htm. You may wish to contact Pierre Heafey (pheafey@groupeheafey.com), the scheme’s architect and Gino Falsetto (gino@ariesdevelopmentgroup.com), the executioner (contact Nathalie Heafey at The Grand & Associates Realty, Inc.; 305-530-0609) for their thoughts on how they gained absolute control over the unit owners at The Grand in Miami, the Grove Garden Residences in Coconut Grove, and the South Beach condo-hotels, The Bentley and Hilton Bentley Miami/South Beach.
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