Dawning of a New Day

The bad news is that property values have fallen across the board in 2007-2009.  The good news is that in some areas we are starting to see stabilization and in some cases a slight recovery.  Also good, is that investors can now purchase and realize positive cash flow.

Case in point:  Fort Myers vs. Miami Beach

Fort Myers:  Properties purchased in 2003 for $150k increased in value through 2006 to roughly $250k.  Those same properties now sell for about 50% to 75% less, between 50K to100K.  These prices are quite attractive for investors looking for new opportunities.  These properties rent for around $950/month which can cover mortgage, tax and maintenance expenses.  An investor may even realize some positive cash flow.

Miami Beach:  The Waverly of South Beach properties purchased in 2003 for $300k increased in value through 2006 to roughly $600k.  Earlier this year those properties sold for as little as $250k but after a few months, the low priced inventory has been absorbed.  The prices now start at around $350k for a Waverly 2/2.  There are still opportunities occasionally for units around $300k, the original 2003 prices.  For investors the cash flow analysis is not as attractive since these units rent for around $2500/month but the gain from appreciation will be greater as the properties continue to increase in value.

So what is the difference?  The difference boils down to the age old adage of location, location, location.  Miami, Miami Beach and particularly South Beach has become one the most exciting destinations in the world.  Miami, Miami Beach and South Beach have a mixture of splendid sunshine, beautiful sandy beaches and an exciting lifestyle that ticks nonstop around the clock 24 hours every day.  It is simply the place to be to live, work, play and certainly to visit.

The Waverly of South Beach

Live Realty has done it again.  We have placed purchase offers of 3 additional units over the past week in the Waverly of South Beach.  Live Realty and Robert Fournier continue to lead sales and rental in this Miami South Beach condominium.

Waverly Pool area

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Waverly of South Beach

The Waverly of South Beach welcomes a new management company, A&P Management, after approximately 7 years with Continental.  Below is letter to the residents from the President of the Waverly of South Beach Association.

Fellow Waverly Condo Residents,

The Board of Directors has chosen A&P Management as our new property management company.   This was a difficult decision that was entered into with great care and deliberation.  We thought it would be important for you to understand the process behind this decision.

The BOD hired a consultant to provide us with alternatives to Continental Management, our previous management company.   Two other highly recommended management companies were considered in addition to Continental Management these were:

• Miami Management
• Atlantic and Pacific Management

Over the course of nine months with the assistance of our consultant, each company presented to the residents interested in participating in this process.  Thanks to your input, and the BC (Budget Committee) an RFP (Request For Proposal) with certain requirements was forwarded to each company.  This document outlined the expectations we have for The Waverly.  Essentially this was a wish list of everything we could ever want in a contract with our management company.

Some of the key points that set A&P apart from the others:

• Management will take full responsibility for the maintenance of our equipment
• Full on-line access to the accounting ledgers for all board members and an infinitely more flexible accounting package than we have now
• 30 Day out clause – with or without cause (compared to a 3 year contract demanded by others)
• Transparency in the Health Care costs for employees

The benefit of hiring the consultant came in two forms that we feel are beneficial for all unit owners.  First, we were able to recover over $100,000 from Continental Management as a result of billing errors that were discovered during the review.  Second, by choosing A&P Management we were able to reduce the yearly cost of our property management contract by $100,000!

We feel the process was fair to all parties involved and are confident that A&P Management is the right choice for the Waverly.  They were the clear choice based on their answers to the RFP questions, where they answered yes to almost every item on our ‘wish list’ – you can see it for yourself by following the link at the end of this letter.  We also felt that the presentation they provided really stood out in a highly positive way.  Lastly, we met with board members from another property in south beach that changed from Continental to A&P just about a year ago and they convinced us that they were very happy with the change.

We thank Continental Management for managing the property for the last 5 years and we look forward to a smooth transition, to which both companies have committed.

For those of you who are interested in reading the consultant’s report, I have attached a link.

Sincerely,

Peter Richter

President,
Waverly Board of Directors

RESOURCES:

____________________________________________________________

A&P Management

http://www.apmanagement.net

Link to the full RFP aka “Wish List” and Consultant’s Report

http://mywaverlysobe.com/information/docs/rfp2009.html

Live Realty – Waverly of South Beach Real Estate office.  Get the lasted information on available sales and rentals, including recent sales and rental activity.  Visit us in the Lobby of the Waverly or at http://www.liverealty.com

I came across two interesting articles that support my theory regarding the declining rates rental market in Miami and South Beach.  It is important that we fully understand the reasons why rental rates have lowered and why they may continue to lower for another year. In addition to the reasons the articles mention, Miami recently added about 10,000 units to the downtown, midtown and Brickell areas. Not all of those units are rental but the majority is or will be soon.

When working with either a rental customer or a listing client the goal is to close the deal while representing your customer/clients best interest.

That does not mean trying to get your listing client to accept the first offer that comes along.

By fully understanding local market conditions, including what has rented, how much rates have lowered and levels of vacancy we will be able to give our clients the information needed to make the best educated choice.

Get the latest information on available rentals and recently rented units.  Go to your building of choice then select see rental units. Or see some popular buildings listed below.

Waverly of South Beach Rentals

Icon of South Beach Rentals

Quantum on the Bay Rentals

900 Biscayne Rentals

Reference: Mish’s Global Economic Trend Analysis: NYC Apartment Rents Drop 7-10 Percent, National Vacancies Highest in 22 Yea