Shrinking Rental Inventory in Brickell and Downtown
July 21, 2010 by Lucas Lechuga
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You could also have mentioned the Loft 2 downtown:
498 units, only 10 available for rent right now (2%).
Very affordable building for renters but prices are going up there too.
I got suckered into reducing my tenants rent by $50 for the renewal. He cried blues and I gave in. Even though I knew rents are rising across the board, I did not have an authoritative proof on hand. I wish this video came in a month or two ago. I would have just thrown it at him and tell him sorry, cant do.
My renter also realized what a bargain he had. He is also suddenly very respectful, nice towards me and set up automatic payments to deposit rent by the 1st of every month. He has not made a single demand or request of any kind. Maybe he wants to get in my good books so that I would not raise his rent next year.
After 3 years. I am loving to be a landlord once again.
Phil — Unless you had a new renter lined up, a $600 discount isn’t anything to worry about. Depending on the unit and rent involved, you probably would have lost that much with a 10-day vacancy.
Phil
You should be thowing the guy out and putting up the appartment for rent at at least $200 higher. No one is building anymore and Miami is a leading city in America. So shortage of rentals can be expected.
I know some owners at Brickell charging over $5000 per month for their 1 B/B apartments. There are lot of Irish, Greek and Spanish bankers looking for place to live.
Poor & Unemployed,
Thanks for the tip. Will do. Unless my renter is going to send me a Christmas Card and a gift basket for my birthday, I will be asking for a rent increase of $200 for the next term.
Joe’s got it right. Poor and Unemployed, do the math again. (“I know some owners at Brickell charging over $5000 per month for their 1 B/B apartments” – – seriously? Come now.)
“This shit’s chess, it ain’t checkers!” (“Training Day” – – for those keeping score)
The tenant was not necessarily shooting for a “hand-out.” Rents may be going up – – but this was a business decision. And, more importantly, this probably also reflects the impact of supply and demand on the rental market.
Let’s look at the real cost here. A $600 discount is peanuts! ($50 x 12 = $600) The choice here was a tenant-free period during which Phil’s fixed costs, the amount of taxes, maintenance, mortgage expenses, etc. allocated to the period, are not off-set by reasonable rent v. reducing rent to maintain the business relationship and a stream of income.
Had Phil rejected the offer, the tenant would have moved out and Phil would be looking at a revenue-free week(s) or month(s) while he found a new tenant. If Phil does not care — then, ok, I accept the characterization: he arguably got “suckered.” But his existing tenant probably had another unit lined up in case Phil rejected the offer so calling the tenant’s bluff would have cost Phil more than the “discount.” Browse the list of available rentals on this site – – there are hundreds of units available for rent.
Never call a bluff when the other person is holding pocket aces.
Well played Phil.
scriv
Poor and unemployed:
$5,000 for a 1 b/b in Brickell? Are you kidding me? Show me the listings.
Also, I get that rentals might be unavailable now, but there are still 5,000+ units hanging in unsold inventory and 4 out of 5 are being sold ALL CASH, mostly to investors. Renters will still have a lot of options, this is a temporary situation.
Finally, renewals have a huge advantage over the owners as in order for you to kick them out and come out better at the end, you have to charge a much higher rate as at the minimum you will be paying 10% commission or 1 month in the new lease.
Let’s consider that the existing tenant is paying $2,000/mo.
If you kick him out and get a new tenant for say $2,100/mo, you will have to pay at least $2,100 in commissions (1 month), so you are effectively netting $2,100 – ($2,100/12) = $1,925/mo. LESS than what you were making before. This even assumes that you have no downtime… if you have it unrented for 1 month, then the effective rent goes down to $1,750.
consider that
Post #4 – $5000.00 a month in Brickell? For a huge penthouse maybe. Show me the listings.
I agree with joe, scriv and hugo. If my unit was already lying vacant, i would have waited for the best deal. As long as the existing tenant proved that he/she is largely trouble free, I would keep them even at the cost of freezing rent or minor discounts.
I agree. I also did not raise my rents since my tenants are paying very well and for another $100/month it is not worth it. At least for now
Good to see that the rental market is tightening. This will impact valuations before too long. As soon as owners break even on rent covering payments, taxes, and HOA. or for godness sake make a profit, then investments in these properties will make sense again. For now the owners have no choice but to subsidize renters with any luck this will finally end. Lucas and Michael: Thanks for keeping us informed!
Lighten up guys and girls! It was a tongue in cheek comment!
comments by lara and phil confirm the rental market has not really turned in the landlords favor, despite media attempts to portray conditions otherwise. if a renter can still get a drop in rent-no matter how much the drop- it is not a strong market. until my arrival in the miami market a few years ago, i never ever considered a situation where my rent would remain the same, much less drop year over year. this has been ongoing for three years now. dont get me wrong, not predicting another collapse in the rental market, but i dont see any strength either. am leaving my current unit for better rags, and the owner tried very hard to sway my decision to stay again. ironically now the unit is a shortsale.
Just out of curiosity what’s going on with the building called Ivy/Mint? I’ve lived accross from the 3 set of towers and the one called Mint hasn’t had a single light thats ever lit. It’s appears completely vacant
gables, You are missing the point. Both Lara and phil said that they dont mind keeping exemplary tenants at the cost of minor concessions or rent freezes. That is the right thing to do. How did that become landlords capitulating to renters?
Your saga with your land lord must have happened between Jan and May of this year or even before when the rental market was still soft. Try now.
Now that you no longer live in that building where your landlords unit is for a short sale, can you tell us which building that is?
why bother, nowhere did i say landlords capitulating to renters. dont make a strawman argument. but the situation is still in renters favor. you say try now? negotiations occurred quite recently-this summer. weakness still exists. as i said, there is no collapse, but in my own experiences, renters are still in control at the bargaining table as opposed to landlords. other areas and buildings may be different, but this has been my own personal observations in practice.
oh the realtors// there is dimishing demand and huge supply// so what happens..young ones move to DT/brickell to party while surrouding areas wither way…
but do not kid yourself…folks may stretch 100-200/month for that..beyond that there unbelievable supply & grovelling owners (sometimes distressed owners) who would lap up a tenant like a candy//
By 2011-2012 we will see the bottom and price/rent ~8-12// 8 will be a good buy//
Remember rentals are turnover games and owners are bleeding every day //and would do so for the next 3-4 yrs//
Keep in mind also that we’re in off-peak months. The fact that rental supply is this low in the Summer is actually very shocking. If you think tenants are still in command with this low of supply then you must be delusional. Most of the buildings that I cited have less than 2 percent availability. Try to rent a one bedroom in one of the newer buildings in Brickell and I will bet that there will be at least one other offer. That is, if another offer hasn’t already been accepted. I’m seeing a lot of landlords now ask for first, last and security and require that the tenant pay the common areas deposit. That’s a total of 4 months out-of-pocket for the tenant. A few years ago, a tenant could get by with only 2 months out-of-pocket. I won’t even work with someone now who only has 2 months because it’s a waste of time in this market. A landlord who accepts only 2 months is in for trouble down the road with that tenant.
Big deal….people aren’t making diddly on rentals when you add in all the costs whether the rents go up $50/month or down $50/month.
I have watched several buildings and will confirm there is less rentals on the market BUT the ones I followed have drop rental asking prices by at least 10% from 2 years ago. For rentals, it all comes down to affordability which is tied to employment and incomes. Neither of which is going up (with deflation, in real dollar terms perhaps a tad).
The smart money has been renting, not buying, and the decreased rental inventory shows people were getting smart that renting wasn’t throwing your money away…BUYING WAS!
As others have shifted to renting, I am shifting to buying (just as when others were closing I was looking to rent). Have an offer on a short sale and waiting banks reply…..takes a long time. Even if there are some price negotiations, I will not buy it unless I think it is a good deal…in other words, put 10% into it for some changes (newer building so nothing major) and still be able to sell and cover all realtor costs, remodel costs, and make about 10% IF I decided to sell (which I am not). That will be a no lose position. Regardless, there is still NO RUSH to buy…good buys will be around FOR YEARS.
Overall, Miami prices have not overcorrected. But Las Vegas has overcorrected and there are bargains there. Might just buy one there too!
Lucas,
What is more amazing is the forever shrinking of the DOM (Days on Market). Some are getting snapped up with in 14 days of listing. Some with in a month. That means, when one tenant is leaving, usually the land lord gets anywhere between 30-45 days of notice and sometimes 60 days. So looks like the condos are getting rented back to back with out ever being vacant for a single day!
Renter Tom,
from making comments such as “death spiral”, “floplords” etc now you are down to just “Big deal….people aren’t making diddly on rentals when you add in all the costs whether the rents go up $50/month or down $50/month.”
– Wow indeed things have turned around in Miami drastically!
Why bother, I’m glad you noticed RT shift in position while he still trying to desperately cling to his position of denial. 6-12 months ago we had many clowns on here calling for the end of civilization as we know it. Today, it appears that civilization may not be coming to an end and maybe , just maybe we have seen the worst and the tide has changed. RT chimes in with the softening of his position but not completely because that would be an admission of his flawed logic all along. I am at least able to give him a little credit though because he has signaled a shift in his position in the face of overwhelming evidence that things have not panned out as he thought. Others on this blog refuse to see the light now matter how the data is presented. These folks just refuse to give in despite the evidence shown to them, they are in denial and will never admit to being way off base in their assessment. RT is looking to buy now, probably a full year too late but at least he realize renting for a lifetime especially when rental demand and prices are beginning to move upwards is a fools game. Now that the preacher has seen the light and repented(sort of) I wonder how long will it take the stooges in the pew to abandon his foolhardy religion of renting forever is better than buying at the right price.
By the way, I’m not saying condo prices will rebound anytime soon but low supply and high demand sure is a positive indicator for owners of these condo’s. Also, when was the last time we heard someone comment on the empty condos of downtown or brickell on this site?
Makes Me Think — Do you even read the comments you post here before you click the “Submit” button? In your last post (#22), you simultaneously claimed that RT probably entered the market “a year too late,” but then you ended your post by saying “I’m not saying condo prices will rebound anytime soon.”
Um, what?
Are you saying there was a huge rally in r.e. pricing from 2009 to 2010, but now price stagnation has taken hold? I guess it’s technically possible, but it doesn’t make much sense.
Anyway, anyone who thinks these rental numbers are proof of a larger rebound are dreaming. Go look at the SALES pages of this site and others. Some of the best buildings in Miami and Miami Beach remain 30% or more for sale, with the (very few) sales usually coming in at 20% below asking price.
People need to face facts: Miami is a huge renter’s colony right now, not a “luxury” owner-occupied market, as it was marketed in all the glossy brochures and fancy videos.
Andi, you are right on 2 counts and wrong on one.
1. oh the realtors// there is dimishing demand and huge supply// so what happens..young ones move to DT/brickell to party while surrounding areas wither way…
TRUE, but who cares what is happening in Kendall/Doral? I have as much interest on the misfortune of the suburban landlords as I am interested in the dwindling fortunes of the Meat Packing Industry in Kansas City.
2. but do not kid yourself…folks may stretch 100-200/month for that..
TRUE, and in this statement you have sent a powerful message. For long it was argued that Downtown rents are very subsidized to attract the renters from outlying areas. Now everyone is saying including you that these additional sweeteners are gone. It is actually costing more to rent in downtown than in the suburbs. So according to you someone is stretching their ability by a $100-$200 to rent these condos even though it would be cheaper to stay in the suburbs by that much.
That is the best compliment anyone can give to the Downtown.
3. beyond that there unbelievable supply & grovelling owners (sometimes distressed owners) who would lap up a tenant like a candy//
FALSE. That is just your imagination. There are no grovelling owners. Distressed owners will be distressed no matter what. Even if they have a good steady tenant, they would still go under as they should not have been a owner in the first place. But other than that, most owners are holding steady. The shake out already happened and the loose apples have fallen.
Unbelievable supply!! Common now. You dont believe that yourself, do you? As the video suggests, there is no more than 2-3% of units for rent in most buildings. As far as sales are concerned, the inventory dropped from 7000 a few months ago to 5000. Those 5000 will be gone too by the end of this year. People were predicting that the entire 22,000 condos will be sold in the best scenario by 2012 and the worst scenario by 2015. Look now, by the end of 2010, most of them will be gone, surprising even the most optimistic bulls. I am very surprised too.This is a phenomenon no one can explain. I cant either. All I can say is Miami is special and your general rules that apply elsewhere do not apply here.
Joe, I’m not making predictions about condo prices. I’m saying a year ago when sales were near zero was probably the best time to buy a short sale. There are more buyers in the market today and banks are not as desperate as they were a year ago. I see I have to explain in details for you. I don’t think I disagree with you about the Miami market being a renters colony but you have to agree that we are not hearing the complaints about the ghost towers anymore, that I think is a positive turn of events few on this board would have predicted even a few short months ago.
By the way I have to give a huge shout out to AJ, he was probably the only one crazy enough to believe and comment about downtown being a vibrant desirable community in this short time. Maybe there is a genius to his madness, who would have thunk it. Hope he still checks in.
By the way, I still think condos are bad investments for the most part.
Makes Me think, There were other people too who were very positive about the prospects of downtown. Just that they were not as vocal to voice their opinions. A simple example would be Swiss Luxury.com who rarely comments but quietly goes out and buys a pent house in Marquis. There are many such people who you do not hear about in this blog as they are busy with investing, buying, living their lives.
I do not agree with you regarding the condos being a bad investment. I bought all cash and I am making money on my investment. I still need to invest 125,000 dollars which is not enough to buy a good condo in this market as most good 2/2 are in the range of 200K+ . CDs are offering 1.35% which is measly. I wish I bought another condo one year back when I could have bought a decent 2/2 for $150K. That is a missed opportunity. But I am glad I did buy when the time was right.
Why Bother,
There are always exceptions to the rule and as I have stated here before I think Miami is becoming like a few other cities where the rules do not generally apply because it is such a desired destination. I just don’t like condos because of the HOA’s and the fact there may be so many similar units at any given time on the market. The buildings are new now but if they weren’t built in with the right materials near the salt water they can become maint nightmares in a few years. Don’t get me wrong, I do think there were good deals out there some months back for investors and there might be some more to be had in the coming months/years. It all depends on what you negotiate.
I remember there were other people positive about the prospects of downtown Miami but AJ took it as his personal mission and appeared overly optimistic. I think that is why he caught so much flack. Some people weren’t as vocal but they voted with their money and I hope they reap nice rewards for their courage to ignore the gloom and doomers.
lots of investors are hungry of these “cheap” homes. People who have been waiting for the signs of things turning around may not get in the game they are having to compete with cash investors. I’ve noticed the same things, I competing with more and more investors paying cash and bidding higher than I’m willing to. I think lots of CA & NY folks are using their IRA money to buy some of these properties.
Settle down people, settle down…. 🙂 I haven’t posted anything new at all. Nor has the market “turned”. I had previously posted months ago if not a year ago that I was looking. BUT there is no rush and extreme caution is needed (such as health of HOA, owners in the building not paying mortgages, etc.). If the short sales doesn’t go through, then no big deal. The condo presented a unique opportunity so I made an offer, buyer approved, taken off mls, awaiting bank approval negotiations. I’ll just keep renting either in current great condo at 1/2 price or one of 10+ (one is another PH unit on the beach with a great view) that people I know own that would love to rent to me to cover their HOA and taxes since their condo would be well taken care of.
Further comment on the “luxury” condos (or what was luxury and Joe has it right in #23). So, these owners bought what they thought was going to be a high end building that they could flip their contract or condo for a huge profit. Didn’t happen and now they are stuck being floplords with a lot of them that would be happy to cover HOA fees and taxes….maybe part of the mortgage. Are they happy? Probably only if they are in denial. How are they EVER going to sell these units as high end luxury condos when the building has essentially turned into a mid-grade rental apartment building with 100’s of different landlords each with their own agenda and interest??? At least with one owner, there would be some coordination with standards, rules, pricing, etc. that would lessen the severity of the problems. But now all the owners have to pay extra in HOA fees for the condo management to act as the “condo police” tracking down and enforcing rules. Not a situation as an owner I would want to be in. It will take a decade or more (if ever) to turn these buildings around. Fool’s game. Check out the rents in AJ’s building if you think he made a smart purchase.
Lastly, it is getting pretty clear that taxes are going to go up, up up. The road map of higher taxes is being laid everyday and the mess to come (socialized health care) is unknown except higher taxes to burden the hard working people tax paying citizens for the benefit of those that don’t. The federal govt has created such huge debt levels that it is crowding out private investment and creating further uncertainties. As such, the high unemployment rate will remain entrenched as the fed govt chases away private investment. This unemployment level will continue the downward pressure on home prices. As I had posted a very long time ago, this is a structural recession, not a cyclical one (now everyone is on the structural bandwagon). Ask any person under 30 in our area that works or wants to work…most will tell you the economy really sux unless they live off the parents or borrow money “for college”…
Meanwhile, I’ll continue to watch day two of 3-5 county workers rake an 80 foot long sand beach path… You would think with all of that “hard” outdoor physical work you’d be in great shape and not tipping the obesity scale…only in Miami Dade County! That is becoming one expensive strip of sand! LOL
RT, I can’t disagree with too much of what you said. If you really care about debt and future taxes then why don’t you focus on the real problem causing the debt which is The US wanting to be the Police for the whole damn world, while we give Pakistan billions of dollars they assist the Taliban in killing Americans. The Government also need to address the problems of entitlements Medicare and Social Security. I’d rather my tax dollars go towards helping Americans get health insurance than spending the money on defense contract and soldiers in far away lands. Time to change entitlement programs and cut defense spending drastically.
Makes Me Think — Seriously, man, you need to re-read your comments before hitting the “Submit” button. You’re sounding crazier with every new post.
First, your allegation that the “rules don’t apply” to Miami because it’s “such a desirable destination” is just pure nonsense. As I’ve pointed out several times, the average Miami resident TODAY is just 2% wealthier than he or she was in 1985, when Time magazine ran its famous Miami cover story. Does that sound like a booming city to you?
Second, there’s absolutely ZERO evidence that large numbers of people “see Miami on TV” and then move to Miami. None. Zero. Zip.
Third, why the hell are you here if you “think condos are a bad investment for the most part”? And, the investment aspect aside, if you dislike condos and HOAs so much, good luck finding a new home in So. Fla. that *isn’t* a condo or an HOA.
Joe –As I have pointed out several times, the average Miami resident TODAY is just 2% wealthier than he or she was in 1985, when Time magazine ran its famous Miami cover story.
Don’t tell me buddy, I believe you. Tell the Tens of thousand of folks filling up the downtown Miami condos, Somehow they’ve missed that memo.
–Second, there’s absolutely ZERO evidence that large numbers of people “see Miami on TV” and then move to Miami. None. Zero. Zip.
There is absolutely ZERO evidence that you are a rational, logical, functioning, productive member of society either. None, Zero, Zip.
Florida Population
Population Rank – 4th in U.S. behind California, Texas & New York
Florida population estimates:
Florida’s Population (2010) – 18,600,000
Florida’s Population (2000) – 15,982,378
Population (1990) – 12,937,926
Population (1980) – 9,746,961
Population Growth Rate (1990-2000) – 23.5%
Gee Joe, they sure are coming from somewhere, maybe you can explain how they get here. 9 Million people added in 30 years, do you know how many states can even boast 9 million residents? That makes south Florida a very desirable place.
—Third, why the hell are you here if you “think condos are a bad investment for the most part”?
To f**k with you!
Buying stocks for the past 10 years and RE 4 of the past 5 years has GENERALLY been a bad investment idea too but I still buy them. I am an investor, that is what I do, I buy other people’s bad investments.
Why the hell are you here?
Take your meds buddy, you are becoming the lone voice of insanity on this blog.
Makes Me Think – I agree with your comments on #30. With that said, however, (1) what if the spending on military prevented a nuke in NYC that would have cost many trillions so bringing the fight to the enemy and preventing them from organizing, planning, developing might be the best course even if ugly and (2) people can earn and pay for their own health care/insurance (god forbid someone would pay for their own scooter chair, diabetic test strips or catheters!) and the costs are going to just explode (a joke thinking it will save money!) since socialism is very inefficient in the mid and long term (misallocates capital from what is really needed and efficient). The economy won’t work if people don’t work for what they need and want. Sadly, we will end up with 60% not paying any federal income taxes and they will be the ones complaining about the system not giving them enough. Meanwhile, the entrepreneurs, higher educated (sacrificed and delayed gratification for reward later), and other drivers of economic growth will get burned out and give up before putting in their full potential.
Makes Me Think — Right back to the ad hominem attacks. You’re a one-trick pony.
Florida’s population growth doesn’t mean diddly squat. If anything, it proves my points — i.e., if all these wealthy people are moving into Florida, why is downtown Miami a renter’s colony rather than the “luxury” owner-occupied area it was advertised to be? And why are local governments drowning in red ink providing social services to these allegedly “wealthy” and “upscale” new residents?
Seriously, in the last 20 years, a whopping 7,000,000 people have moved into Florida, but somehow, two years after the biggest r.e. crash in recorded history, the measly 20,000 new condos in Miami still aren’t sold out. That doesn’t sound real “upscale” to me.
Joe, now you are sounding cartoonish. Chill man. OK, Miami is poor, Miami sucks. You will get your SOFI condo for $125/sf. Now go to bed peacefully. Goodnight.
Bo diddly — I’m just looking for someone to reply with some facts rather than ad hominem attacks or the nonsense from the glossy sales brochures. I wouldn’t live in Miami if I didn’t like it, but a lot of the comments here are just fantasyland.
RT, I believe like you do that everyone who is capable of going to school and working should do so otherwise there should be no services available to them. I also believe that some people do the right things but sometimes fall on hard times through no fault of their own. For those people I believe social programs should be available to them to help them on their feet when they fall. As far as nuclear weapons go, I believe one of the girpes most of the world have against us is because we want to be in parts of the world influencing politics we have no business with. Weren’t the Mega Tons of Nuclear weapons we have stockpiled suppose to be all the deterrent we need? What happens to countries like Canada and Australia and Japan and Germany that doesn’t have these vast Military budgets and bases all over the world, why aren’t they worried about taking the fight to the enemies? They are spending their money on building their countries not bombing people in Iraq and Afghanistan then Paying to rebuild the country just to have it blown up again. Why do we have to be the school yard bully? Anyway if you are serious about getting debt under control, might I suggest you start with addressing being law enforcement for the world. Then some of us will think you are really serious and we might consider getting rid of the some social programs here at home. You won’t be taken serious though if you advocate spending so much money to build Iraq, Pakistan and Afghanistan while kids in our own cities and towns are living in sub standard places. They pretend to be our allies today but in reality they are a military coup away from being a sworn enemy.
People can pay for their insurance but who protects the people from their insurance companies? I believe You yourself have claimed the insurance companies in SF are a rip off. Are we now suppose to trust them when it’s time to pay claims for Cancer or some serious injury, are the poor slobs who have been paying their premiums for years suddenly going to get a fair shake?
Joe–Right back to the ad hominem attacks. You’re a one-trick pony.
We get it, you’ve learn to use it 3 times in a sentence so it’s yours now. Let’s see if you can learn to use another word now.
Sounds like you are the one trick pony.
Your questions were directed to me. I answered your questions point buy point and gave you statics to back up my response.
what more do you want? Next time address you question to someone else if you don’t like my response.
Makes Me Think — You answered my questions point by point? Really?
I asked for proof that people “see Miami on TV and then move here” and you replied with a chart of Florida’s overall population growth, which proves nothing. A lot of people have moved to Texas and Arizona and Nevada, too; are those places also “special, luxury destinations”?
I’ve also repeatedly asked for evidence of Miami being a “special” “growing” city from an economic growth perspective; you replied by saying “people are filling downtown condos,” which, again, proves nothing. Can you name any big companies that have moved their HQ to Miami, or that have added hundreds or thousands of well-paying jobs to Miami?
Again, I love Miami, but let’s not stick our heads in the sand here. If rich people aren’t flocking to Miami from elsewhere, and if good-paying jobs aren’t being added, then it’s ludicrous to keep claiming that Miami is some of sort of economic Mecca. It’s not.
Makes Me Think – Just a few comments:
“I also believe that some people do the right things but sometimes fall on hard times through no fault of their own. ”
– That is why we save for a rainy day and buy insurance for loses we can not afford. A 24 year old has plenty of money for a $100 per month cell phone plan but won’t buy $60 per month health insurance??? Americans got by without socialist big brother so why do we need him now? The problem with socialism is that it uses other people’s money to buy things we don’t need. It is economically wasteful and destroys personal responsibility and incentive. Lastly, charity should be local — one on one, face to face — private charities, church outreaches, etc. should not be crowded out by the federal govt.
“Weren’t the Mega Tons of Nuclear weapons we have stockpiled suppose to be all the deterrent we need?”
– That works with state actors, not with terrorists hell bent on destroying civilization in order to create their own warped version from the ruins since they can’t get people to follow their kooky philosophies with intellectual persuasion.
– I will agree that we should not be the world’s policeman. In fact however, we’re not. We only do so when vital interests are at stake and let others slide. Lot’s of craziness in Africa but we don’t do much (Obama Admin even cutting HIV drugs there…that’s gonna result in cultural obliteration and instability for generations) nor in South America either. Why? It can’t affect western Europe and doesn’t go to the heart of our economy (oil). I will agree that the mideast thing is a much bigger commitment that in hindsight should have been pared down from the start.
– With regard to insurance companies, I think you have me mixed up with someone else? The best recourse for insurance claims bad faith is good state laws, a solid pro-consumer state department of insurance, and treble damages in court. That’ll keep them in line.
– Back to condos….we got too many, not enough buyers. Renters may be taking advantage of the low rents in new condo buildings but that may just drive rents down more, not up. Why you may ask??? The renters are creating more vacancies in the non-condo rental apartment buildings which will drive down rents there to compete….which will then drive down rents in the condos. Just a thought….since there is too much supply in rental market units too.
96.5% of mortgages in the 1st quarter were Freddie, Fannie, or FHA. Despite all the cash on the sidelines the private money isn’t going to real estate. Why? Will we have another housing crisis with the Fed govt taking the hit? This is NOT a healthy number people.
Joe — it’s ludicrous to keep claiming that Miami is some of sort of economic Mecca
I don’t ever recall anyone calling Miami an economic Mecca, those are your words.
Miami has never been an economic mecca except for the days of cocaine cowboys, possibly. Miami/SF is very special to me and many others mainly because of it geography. It is rather unique not just special. You may not want to agree but the fact you spend so much time and every opportunity bad mouthing the place and it’s people, yet claims to wanting to spend over 1 million dollars to live here speaks volume. You may be more qualified to speak about it’s uniqueness because I will admit to being partial on this subject. With all the places in the world you can choose to live with your million dollar budget why choose this rather non-special place, why not some other non-special place with much less problems?
–Can you name any big companies that have moved their HQ to Miami, or that have added hundreds or thousands of well-paying jobs to Miami?
My point is that I am not aware of there ever being a time when Miami/South Florida has had big companies move their HQ there. Miami has always been a place for the very rich and the very poor with a very small middle class. Despite that fact SF has had very large population growth why is it now necessary for there to be companies moving there HQ here in order to resume it’s growth. My point was simply that if Housing prices drop another 40% people will start to move back to SF at rates that they have historically done so.
–I asked for proof that people “see Miami on TV and then move here”
Are you serious? This is rhetorical right?
I never said they see Miami on TV and then move here. My exact quote was
“People see one sexy TV episode and decide they have to be down here.”
I then went on to explain the following logic;
“People are not moving down here sucking up current supply because prices in many cases are still out of their reach but I can assure you if prices 8drop another 30-40% then those folks watching Burn Notice and CSI-Miami in western Ontario, Iowa or wherever they may be will be looking towards Miami/SF as an affordable destination”
We covered this about a week ago. You seem to want to belabor this rather non-relevant point. I am not sure where you are going with this. All items on my board are green right now and I don’t go to the gym till this afternoon so I have nothing but time right now to continue this rather silly discussion. You seem to get upset when I said there exist no proof that you are logical or rational but you continue to display illogical and irrational thoughts in your discussion on this topic. Not name calling just observations.
RT–The problem with socialism is that it uses other people’s money to buy things we don’t need. It is economically wasteful and destroys personal responsibility and incentive. Lastly, charity should be local — one on one, face to face — private charities, church outreaches, etc. should not be crowded out by the federal govt.
I agree with you, I don’t want my taxes going towards military bases and fighting wars in foreign lands protecting oil riches of governments that hate us. Most Americans don’t need to have troops in these other countries, maybe the big multi-national companies do but the average American don’t. I consider it socialism to send troops to foreign bases to protect the riches of those foreign governments. Why don’t you see it as a form of socialism? I want my tax dollars spent here on helping educate our kids and providing health care for the old and disabled. I guess socialism is in the eye of the beholder. When you cry socialism, I will say it is not socialism to provide for the citizens who pay the taxes. I would also say it is socialism to have military bases overseas protecting people who hate us and don’t pay a penny of taxes. You say we need protection from people who want to kill us but I ask what about Canada, Japan, Australia, Germany and a host of other countries around the world with very small militarise, why aren’t they as concerned with building foreign military bases?
RT–The best recourse for insurance claims bad faith is good state laws
So not only do we need to depend on the insurance companies to live up to their ends but we should trust the same corrupt state politicians to create “good state laws” to regulate the insurance companies. That sounds real simple and good in theory but if it were that simple then it would have been done already. I wouldn’t want my child’s life to depend on greedy insurance co or corrupt state politicians.
–It can’t affect western Europe and doesn’t go to the heart of our economy (oil).
One could argue that can be considered a subsidy to the oil industry. Oil security should be considered a part of doing business for the oil company that should be passed on the the users. If I don’t use much oil why should i pay the high cost to protect oil?
Sounds like I’m being asked to buy something i don’t need or use, the big users of oil should pay for the military spending, otherwise it is socialism, no?
I think it is unfair to cry socialism when the poor and disadvantage is getting a few crumbs thrown their way but when the big industrials or rich get the majority of the pie everyone looks the other way or try to justify it by claiming it is for security. I don’t need to pay for security because I live in the burbs and I pay local taxes (police salaries) and I have paid for the guns and bullets in my home. Why do I need to subsidize the security of the rich companies in NYC, let them pay for security against terrorist.
Makes Me Think — Ah, finally, some honesty! If you’re saying Miami is a “special place” for people who already have money, then we’re finally in agreement. That’s been my point all along.
By the way, I complain about Miami *because* I love it, not because I hate it. I look at Miami and see what should be a vibrant, economically successful city, but instead, I see corruption and horrible leadership and under-the-table deals and wasted tax dollars. If people who care about Miami don’t speak out, then who will?
MMT and RT, You both have valid points. Tough to argue against either of you.
But RT, where the hell can you buy Health insurance for $60/month bro? The cheapest private insurance that I know of is around $300/month.
Joe,
You said,
Makes Me Think — Ah, finally, some honesty! If you’re saying Miami is a “special place” for people who already have money, then we’re finally in agreement.
—-> You are correct, sadly this is true.
—–> Miami is a very special place for thoses folks who already have money. It’s not a place that most folks can make real money (over 100K per year).
—–> I was born in miami, but I left miami when I was 19 (with my BS degree in computer science) and I went to other states with large numbers of corporate offices. In those large corporate office states is where I mastered my skills and made my money.
——> I used that money (and my A plus credit that I obtained in thoses other states) to buy my condo in miami.
——-> There is not as much work in South Florida of course, however since i already have my career in place, I can still make 100k managing projects SOFL. However, while I am still young I would rather make 50K to 75K more managing projects in thoses large corporate states.
—–> for my career at least, there are over 100K jobs in SOFL, however they require a skill set that is aleady defined via jobs in other more corporate states
—–> I would of never obtained my skill sets and exp if I would of stayed in SOFL.