Saturday, April 24, 2010
Dear Reader,
There hasn't been much good news in the Miami condo market recently. An article this week covered the rise in condo sales in the city, but the news wasn't all good. On the upside, condo sales rose. From May last year, 1700 units sold in downtown Miami. The downside was falling condo prices. In Miami-Dade County, the median price was $275,000 in 2007; today, the median price stands at $135,000.
That fall in prices (sometimes to levels below what the unit cost to construct) has attracted crisis investors. In August last year, Ronan McMahon told you why he loves a good crisis...and it looks like he's not the only one. Many of the Miami buyers are South American investors, who want the prestige of a condo in a premium Miami address, and can now afford the best.These Latin buyers often pay cash for their units, too, a sign of growing middle classes and the strength of the economy in countries such as Brazil.
The real profit is with the big boys, though, who pay less than the face value for loans that developers can no longer afford. Starwood and the Federal Deposit Insurance Corporation bought two developments that were part of Corus' national loan portfolio. Starwood and the FDIC are sitting out the current storm, and waiting for a rise in the market before they sell their units.
While South American buyers want a property in the US, US buyers want a property in Latin America. Many are looking for more affordable healthcare. Costa Rica hosts an international medical tourism conference next week, focused on attracting business from the US. According to the Deloitte Center for Health Solutions, 750,000 Americans traveled overseas for healthcare in 2007, and that number could rise to six million by 2010. An estimated 95% of current medical tourists to Costa Rica are American. The conference will emphasize Costa Rica's eco-friendly credentials, which can aid recovery.
You don't have to go far from Costa Rica's capital, San Jose, for that eco-friendly, outdoors feel. A short 30-minute drive takes you to Braulio Carrillo national park, a vast expanse of tropical rainforest, exotic plants, and magnificent wildlife. A two and a half hour drive gets you to the Caribbean coast, and some of Costa Rica's finest beaches. Between the park and the beaches, you'll find Grand View Estates. The property boasts 640 acres of forest, waterfalls, rivers, and rolling hills...and home sites from $40,000. Moreover, the developer of Grand View is offering a free stay...giving you the chance to explore this exciting area (and the healthcare options) for yourself.
I want to end the week on a relaxed, tranquil note, and what better place for that than Belize? The author of this article is obsessed with permits. I don't mean construction permits, either...we are talking about saltwater fish. Permit is the Holy Grail for some sport fishermen, and Belize a great location for stalking them. The author almost caught two permits after a frustrating week of playing tag off Turneffe Caye.
Other permit-friendly spots in Belize include Ambergris Caye, and Chetumal Bay. Chetumal Bay is home to Orchid Bay, a large, master planned, waterfront development. If you'd like three laid-back days in this calm, Caribbean paradise, click here. You can even add on some sport fishing--if you can tear yourself away from your hammock on the beach.
Margaret Summerfield
P.S. Ronan and I spent a chunk of this week at the International Living conference here in Panama, updating attendees on the latest market trends...and heard other speakers talk about healthcare options, asset protection, and second passports. If you didn't make it to the event, but would like to hear the recordings, click here.
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