Markets in Everything, South Florida Edition: Vultures in Miami's Real Estate Market
South Florida is in the throes of a truly hellish real estate bust. Home prices are down 24% in the past year, with many places changing hands for less than half their height-of-bubble values. The region has seen foreclosures on more than $14.2 billion worth of property this year—a record. Developers can't sell enough units to pay construction loans. Condo boards are trying to keep the stairwells of their half-empty buildings clear of vagrants. Landlords are renting out units at daily rates to makers of porn films.
The bleak tableau is exactly what vulture investors have been waiting for. Having sat out the bubble, they're flocking to the Magic City to make lowball, often all-cash offers for numerous properties at once. Some members of this motley assortment of foreign professionals, U.S. money managers, and retired corporate executives learned how to prey by picking through the detritus of the U.S. savings and loan bust. Others earned their stripes in emerging- market financial crises. They differ in their tactics; what unites them is their absolute insistence on paying bottom dollar.
Business Week
Thanks to DB
6 Comments:
"what unites them is their absolute insistence on paying bottom dollar"
Umm...and this is different than other buyers...how?
Interesting article regarding the implications for the global economy of a collapse in the housing market in China.
How did we get here? Revisiting the GSEs
Interesting...rise in existing housing sales seem to cushion the blow of today's stock market tumble.
However, major U.S. indexes avoided the deep plunge many had feared, partly thanks to an unexpected rise in U.S. home sales.
They're buying low intending to later be selling high?
THOSE BASTARDS!!!
> However, major U.S. indexes avoided the deep plunge many had feared
Interesting that they tout the Yen's rise, but ignore the USDollar's substantial increase, too.
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