Is it wise to invest in real estate in Miami, FL?

A relative is planning to buy an apartment on The Plaza (Brickell Ave). Is it a good investment?

These people who say Florida real estate is bad and the worst place to buy right now need to stop thinking they know everything and open there eyes and realize florida is a big, no huge, state. Florida currently has 3 of the top 10 appreciating areas in the country: Gainesville, Ocala, DeLand. They like to act like they know what they are talking about because they read 1/4 of an article 2 months ago. The reality is real estate is a local market and can not be spoken about on state terms, possible Rhode Island may be an exception to this.

But as far as your question Brickell which is in Miami, where I live, I would consider a terrible investment at the current time. There was a record number of condo units delivered to the market last year most of which were owned buy speculators trying to flip them. The current inventory for sale is 23 months as opposed to the national average of 6 months. Add to this the fact that this year if all consstruction is on time as many units will be delivered in Brickell and South Beach, across the causway basically, as were built in the decade of the 1990's and 25% more than last year, again 60% owned by inverstors, speculators. Next year there should be a 30% increase in the number of units to be completed, after this there will be a dramatic slow down in new units since developers are currntly not starting many new projects. Keep in mind many of these "investors" can not afford these investments and when they bought them thought that because real estate is guarnteed to only go up forever they could flip the contract on the day they closed and would never have to take control of the unit or find financing, they are going to need to unload these as fast as they can put everyone is trying to get out at the same time. I can't wait to get my South Beach or Brickell condo in about a year and a half. If the relative is buying to live there and they negociate a good price I would not worry but as an investment, better to wait.

I personally won't buy anything in Florida right now. Prices went up too high. Needs more correction.

No.
Florida will be underwater in a few years.

You really need to buy the DVD "An Inconvenient truth"

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