If you’re looking to buy a condo in South Florida, you have plenty of options. Seth Denison, the Managing Principal at Brickell Ventures says the South Florida condo market is robust,
"If you look back in history, we are definitely at a peak in the market, we've developed roughly 47,000 units in the Tri-County area and there's a lot of inventory available for buyers," says Seth Denison, Managing Principal at Brickell Ventures.
So what’s behind this condo boom and when did it begin?
"2004 to 2008 were highs in the market, everybody was building, 2008 the financial crisis occurred and there was a lot of units that were left lingering around the market for a long period of time. Ultimately, there were absorbed. And in 2012 developers came back into the market and started developing again. And what we are currently seeing today, is that the beginning 2012 cycle is presently in full steam ahead and ultimately will be topped off sometime in 2019," says Denison
So now that you know there are condos to buy what should you be looking for? Here are some tips from Seth:
"You definitely want to look at the age of a condo. And understand that obviously as it ages, sometimes there could be expenses that the building needs to incur. Fixing of an HVAC unit, fixing of the elevator, pools are a big one. And so newer buildings tend to command a bit of a premium because there are less problems. You definitely want to look at the HOA's financials, make sure there's a hefty amount for reserves and that there aren't extra dollar amounts that aren't really being wasted on things like valets, they are often times very expensive and developers want them but end users tend not to need them," says Denison.
And on the flip side, if you have a condo and you’re looking to sell, Seth has some advice for that situation as well.
"If you are a seller in this market, you have to be realistic. There is an ordinate number of condos that are presently in the resell market on the MLS, very traditional sales mechanisms and often times sellers just don't believe that there are really in the red, so to speak. Their unit is worth less than what they actually paid for despite only buying it a year or two earlier. If you got to sell then you have to be realistic in your evaluation and understand that you might be selling at a loss in this market," says Denison.
To speak with Seth and to learn more about Brickell Ventures head to BRICKELL-VENTURES.COM