MyBrickell and Millecento Pre-construction Sales Update
Pre-construction sales at MyBrickell and 1100 Millecento have been remarkably strong this year. MyBrickell, which broke ground about a month and a half ago, has only 11 of 192 units remaining. Completion is slated for the end of 2013. Millecento has been even more impressive. Millecento should be completely sold out long before groundbreaking. Only 13 of 382 units remain and groundbreaking is not expected to take place until October. Delivery is scheduled for November 2014.
Contact us if you have an interest in reserving one of the last available units at MyBrickell or Millecento.
Top 5 Questions To Ask When Buying a Condominium
Buying a condominium is quite different than buying a house. A different process is involved so make sure that you ask the right questions to avoid unexpected issues or expenses after closing. Below you will find what I feel are the top five questions to ask when buying a condominium.
1. Does the condominium development have any current or planned special assessments?
A special assessment is a one-time charge levied by the condominium association upon unit owners to pay for unanticipated expenses such as a major replacement, repair or improvement. Special assessments are rare in newer buildings but typical in buildings that are 15 years old or older where a roof might need to be replaced, a pool might need to be resurfaced, a lobby completely redesigned, etc. Although sellers are obligated to disclose any special assessments to buyers when entering into a contract, I recommend speaking with the property manager prior to making an offer so that you can take the information into account when coming up with a price to offer. A special assessment is not a deal killer but I would have the seller pay for all, or at least the vast majority of the special assessment, at closing. When shopping for a condo in a building that is 10 years old or older, I would also find out from the property manager if the association has a reserve account. A reserve account, which acts as a savings account, holds funds set aside by the condominium association to pay for major replacements, repairs or improvements on the building. Reserves funds are intended to prevent or offset the need for special assessments. For those looking to buy a condo in a much older building, keep in mind that all condominium buildings in Miami-Dade County must be inspected and recertified every 40 years. This will almost certainly result in a special assessment of some sort being levied if the condominium association has not kept on top of its repairs over the years.
2. How much are the condominium association fees?
Condominium association fees, also known as maintenance fees, are used to pay to operate and manage the building. Expenses that are often covered by these fees include: the cost to insure the exterior of the building, pay staff salaries, maintain and operate the amenities and pay not only the utilities which are needed to operate the building but also any utilities that are provided to individual units such as water, sewer and trash removal. A portion of the condominium association fee may also be set aside to fund a reserve account. Condominium association fees are normally paid on a monthly basis but I have seen cases where the condo association elects to have its members pay them on a quarterly basis instead. In Miami, the fee charged to each unit owner is determined by calculating the proportional amount of the budgetary expenses attributed to each unit based upon square footage . I have heard of buildings in other cities base the ownership percentage on other standards such as view or floor location of the unit but I have not come across any condominium buildings in Miami which use anything other than square footage as their basis. The condominium association fees can change from time to time so I would check with the property manager to ensure that the figure you see in the MLS is up-to-date. I would also find out if there are any plans to increase or decrease these fees anytime soon.
3. Should I have an inspection done on the condominium?
9 out of 10 times a condominium inspection will not reveal any major concerns. Nevertheless, I typically recommend that a buyer have an inspection done anyway. The cost of a property inspection is very small in the grand scheme of things. It is better to be safe than sorry. You will want to ensure that the air conditioning unit and appliances are operating properly. Keep in mind that a standard inspection does not include an inspection for mold. I recommend making a visual inspection of the ceilings and air conditioning closet for water stains. A water stain does not necessarily mean that mold is present but I would recommend that the buyer have a mold inspection done if that is the case. It will cost extra but it could potentially save you thousands of dollars and a ton of headaches.
4. Will I be able to obtain financing to purchase a condominium?
If you are looking to obtain financing to purchase a condo then this should be the first question you ask. Aside from your creditworthiness as a buyer, the answer will depend on the building in which you seek to purchase a condo. The development will need to meet certain guidelines in order to be considered Fannie Mae approved which would then make the building eligible for conventional financing. Although we do work with banks that will finance a condo that is not eligible for conventional financing, the interest rate will normally be slightly higher than that of a conventional loan. In either scenario, a bank will typically require at least a minimum 20 percent down payment.
5. Does the condominium association have any restrictions?
The condominium association can, and often does, implement restrictions on owners. The two most common are lease and pet restrictions. A condominium association will typically limit the number of times per year that an owner is able to lease their unit. The association will normally also set a minimum duration for each lease. Such policies prevent the elevators from constantly being congested with people moving in and out of the building. Investors, on the other hand, generally welcome less restrictive rental policies in order to maximize their potential revenue. Most condo associations in Miami establish a minimum rental period of 3 or 6 months.
Another major restriction that a condominium association can impose is one on pet owners. The majority of new condo developments have very lax pet policies at the outset. However, once the building is handed over the to the condo association more stringent policies are typically put into place. It is common at this stage for the condo board to vote to allow owners to have pets but not renters. Although debatable, the rationale behind this is that owners are more respectful of the property than renters. Investors, however, should keep in mind that rental candidates will be limited if such policies are implemented in a building where they own a condo. You would be surprised by how many people own a pet these days. The condominium association can also restrict the items kept on your balcony, the type of vehicle(s) you can park in the garage, the days of the week and hours for which you can move in and out of the building, the hours you can access the amenities and so on.
Phone Numbers for Condominium Associations in Miami
I decided to compile a list of phone numbers for various condominium associations in Miami. These are useful to real estate agents, buyers, sellers and renters alike when looking to obtain building-specific information such as pet and rental policies as well as to request an application for condominium association approval. You can find the list under the “Resources” drop-down menu in the header. The list is by no means complete so please feel free to email me any that I am missing so that I can add them. [email protected]
Miami Condo Investments Turns 5 Today
By happenstance, it suddenly occurred to me yesterday that Miami Condo Investments would be turning five years old today. Five years! Quite remarkable when I stopped to think about it. I had owned the domain since 2005 but it wasn’t until May 12, 2007 that I decided to roll up my sleeves and write my first blog post – I just had to see what this blogging thing was all about. I had read all about the potential benefits of blogging and what it could mean for my real estate business but never in my wildest dreams did I imagine just how profoundly it would impact my career. Had it not been for my commitment to blogging, there is no doubt in my mind that I would have fallen to the wayside like many of my fellow Realtors® at the height of the market. Instead, blogging allowed me to advance in my career and see continued success with each passing year. Blogging also provided me with a forum to reach a global audience – a forum which, over the past five years, has had roughly 2M visitors from 206 countries who have viewed over 10.3M pages! I want to thank each and every one of you, especially those who have contributed to the forum with comments and feedback. It has been greatly appreciated.
Without a doubt, Miami Condo Investments will be around for another five. I look forward to the coming years and will continue to provide you with relevant information about the Miami real estate market.
iPhone App Update Now Available on iTunes
Great news! The Miami Condo Investments iPhone app is now compatible with iOS 5. You can download the latest update on iTunes. We would love to receive any feedback that you might have so it would be great if you could leave us a review.
As a side note, I recently updated the scores on the Condo Rankings page and have added a few buildings such as Mint and Paramount Bay. The majority of the changes were made to the risk adjustment column to reflect the decrease in developer inventory in many of the newer buildings since the last update.
Android App Now Available on Google Play; iPhone App Update Available Soon
We are proud to announce the arrival of the Miami Condo Investments Android App to the Google Play store. You can download it for free today. We are confident that it is the best Android app available to cover the Miami real estate market. We have tested the app for over two months and have received very positive feedback thus far.
Our latest iPhone app update has also been completed but is awaiting approval by Apple. We expect the latest update to be available for download on iTunes sometime next week. The update will fix an issue which caused our app to crash repeatedly for users running iOS 5.x. Ironically, those running older iOS versions did not have issues using our app. I will be sure to let everyone know once the iPhone app update is available on iTunes.
Both real estate app versions have the following features:
- GPS-enabled to allow users to search for condos near their current location
- View South Florida condo developments on a Google Map organized by neighborhood
- View available sales and rentals as well as recent sales and rentals
- Read the most recent blog posts regarding the South Florida condo market
- Save condo listings of interest to your “Favorites”
- Advanced search criteria allow you to search for condos like a professional
- View building and property photos
- Contact a Realtor by phone or email directly from the app to answer your questions and/or show you properties in person
Paramount Bay Update
Earlier this afternoon, I was in the neighborhood so I decided to stop by Paramount Bay to get an update on pricing and availability and also to check on the progress that has been made to the common areas. The amazing news is that Paramount Bay is now 69% sold. That’s a remarkable feat given that the common areas were (and presently still are) a work in progress when sales launched on November 7, 2011. Early buyers were rewarded generously, however, for believing that current ownership would deliver a building with common areas of superb quality. There have been several price increases since November and, after touring the building today, I can tell you that early buyers made a very wise decision. Contractors have worked earnestly on the common areas since November and prices have adjusted accordingly as completion approaches 100%. From what I saw today, Paramount Bay is shaping up to be one of the finest condominium buildings in all of Miami.
I also discovered that there are two penthouses still available for sale at Paramount Bay. Both have 4,437 interior square feet along with 736 square feet of terrace. One is located on the 45th floor and currently is being offered at $3,685,900 while the other is located on the 46th floor and is asking $4,001,900. Below, you will see the price ranges that currently exist for the various floor plans at Paramount Bay. Keep in mind that pricing is expected to increase as the common areas near completion.
Miami Home Prices Up for Fourth Consecutive Month; Condo Prices Skyrocket 46% Year-Over-Year in March
The March figures for Miami real estate were released yesterday by the Miami Association of Realtors. The report showed that Miami home prices increased for a fourth consecutive month. The median sales price of condominiums in Miami-Dade County skyrocketed 46 percent while the median sales price of single-family homes rose 13 percent year-over-year.
“The fact that Miami home prices have significantly increased for four consecutive months indicates prices have bottomed and have caught up with sales levels,” said Martha Pomares, 2012 Chairman of the Board of the MIAMI Association of REALTORS. “We expect this trend to continue, as Miami increasingly attracts international buyers and investors, second and vacation home buyers, and migrating U.S. residents.”
A Look Inside Penthouse 3401 at Asia
I had the opportunity earlier this afternoon to tour one of the most amazing penthouses that Miami has to offer – Penthouse 3401 at Asia. The 5 bedroom/6.5 bath, tri-level penthouse has 4,954 square feet of interior with 12-foot ceilings on each floor, a maids quarters off the laundry room and white marble floors throughout. All together, the Asia Brickell Key penthouse has 1,602 exterior square feet which includes an outdoor wet kitchen and a roof-top pool offering breathtaking water and city views. The unit also includes an in-unit elevator for those who find the walk to the third floor master bedroom too grueling after a long day at work. To top it all off, the penthouse comes fully furnished and decorated courtesy of Artefacto. The price to live the high life on Brickell Key – $8.8M.
