I was not surprised reading Matthew Haggman’s Front Page story REAL ESTATE THE BUILDING BOOM: Nervous condo buyers want out. We are going to see a lot of buyers looking for loopholes in their contracts.
Haggman says:
The estimates of how many buyers are speculators -- who bought so they could resell -- range from 30 percent to more than 70 percent.
I wish we could get a better handle on that number, that is a pretty large spread. After looking helter-skelter at condo sales and single home sales, I did see a lot of activity; many people owning at least two properties.
I also am confused by Goodkin, who is quoted in the article, he says:
Condo buyers risk losing typical deposits of 20 percent, instead of 10 percent for new single-family homes, said real-estate analyst Lew Goodkin.
I have seen a lot of 5% down mortgages on new single family homes built down in south Miami-Dade. Does that mean that they put 10% down and then some of it is eaten up in closing costs? I wish I could get a handle on how it switches from 10% and then to 5% at Mortgage time (and sometimes to 0% down). Haggman: What’s the deal? Do they put the 10% down and then get it back from the mortgage?
Anyway, it was a good article. Shit is going to hit the fan as more of these buildings get finished.
1 comment:
I believe the most disturbing part of the article is the effort by builders to introduce legislation in Tallahassee which will benefit developers over buyers.
"Developers in turn are worried that if they give one buyer a break, they will lose the building. With their support, legislation is pending in Tallahassee that would make it tougher for buyers to get out of condo contracts.
'If I am a developer and you come to me with your lawyer and I let you out, the first thing that lawyer does is tell everyone else in the building, `I can get you out, too,' '' said Miami attorney John Sumberg, who represents builders.
Insurance is a particularly sensitive area of dispute. Developers gave buyers projections for monthly maintenance costs when they signed contracts. But skyrocketing insurance premiums have pushed maintenance fees far beyond projections, prompting buyers to say their contracts are no longer valid and they shouldn't have to close.
CHANGES IN COST
Developers argue that they can't be held accountable for what is not in their control. State Sen. Mike Fasano, a New Port Richey Republican, has introduced an amendment saying that such changes in cost do not count as a breach of contract.
Mr. Haggman,
If you want the real truth about Midtown Miami Developers, you should talk to the owners at Nirvana Condominiums, another shameful venture this New York developers took on here in S. Florida.
Just as an example, they promised pools would be ready by spring of 2005... it's March 2007 and Nirvana still has not permits to use the pool.
As your story shows, they have no respect towards their clients. They build walls all around them and do not respond to owners inquiries... they treat people like shit. Their building license should be revoked as far as I'm concern. And now they want to do another Midtown Miami type of crap in Connecticut.
Politicians should have never allowed Midtown Miami Group to come to South Florida. Ask also DDR, the commercial side of Midtown Miami... I wouldn't be surprised if they have litigation going on. The commercial and the residential side should have opened more or less at the same time, but Midtown Miami residential side (Michael Samuel and company) delayed everything.
Furthermore, they tried to buy Linda Haskins with tons of political campaign money, but not even their fat wallets prevented Ms. Haskins fall.
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