The debate about a possible housing bubble is revived

Not far the crisis that developed after a housing bubble in the United States and that seriously affected its economy since 2009.

And countries like Peru, where the growth of the economy is based largely on between her construction and housing construction, the possibility of a housing bubble continues to be a topic that many lose sleep.

Consider the situation in the country. In the last five years the increase in housing prices hovered around 20%. But this strong rise in home values ​​is it due to the effects of the high demand of the real estate boom or bong is the advent of a bubble?

For the economist Paul Lira, academic director of the UPC, “the housing bubble is just around the corner,” because, although the pace slowed sales, prices continue to rise.

“A bubble is defined as the increase in the price of a good that goes beyond the fundamentals. Yet as the same Central Reserve Bank notes, between the last quarter of 2014 and 2013 prices have increased by 16 % in constant soles while the sale of real estate units rose only 2%, “he said.

Also in the period November 2013 – November 2012, the 23% housing credits, of which 40% were in dollars rose. “This adds an extra dimension to the real problem, as many borrowers in that currency perceive their income on soles, which exposes them to currency risk,” he declared.

However, for the economist Armando Mendoza, the increase in housing prices is due in part to the speculative boom.

“The bubble is generated by the oversubscription to the loans and many speculative buying, but we are far from that. The real estate sector is quite heterogeneous, but some sectors such as A or B are already reaching its limits, ie, their increases will be more reasonable, “he said.

He added that in the case of the United States or Europe, the crisis of the housing bubble was accompanied by a financial and economic crisis scenarios that do not occur in our country.

In the same vein, economist César Peñaranda said that the analyzes show that there is a risk in the short term. “If the price of the houses I observed and compared with the average prices in the region, these are low,” he said.

“STILL ON LAND”

Fernando Castañeda Melgar, partner Aramburú Boero Camino Attorneys, argues that a housing bubble is an unrealistic price rise collapse of the property at any given time, causing his dramatic fall as a result of reduced demand and market failure to absorb the existing real estate.

“This drastic correction to financial institutions is affected, as we have seen in the United States and Spain, may get to break the impossibility of recovering their loans, and investors who have no way to pay for credits to which agreed to acquire property in order to resell them at a higher price or lease positively and generate negative perceptions about the economy, as you know the experts in this matter, can cause more damage than the bubble itself. ”

The expert noted that there ratios as Price to Earnings, which represents the number of years it would have to rent a property to recover their purchase price.

Castañeda cites the Banco Central de Reserva del Peru, pointing to the end of 2010, an average of 13 years to recoup the price of housing, with a return of 7.4% for investment by way of rent.

Today, that would mean the range of 17 years and 6% yield. “The bubble ratios are of the order of 25 or more years to recover the price, so we are still on land,” says Fernando Castañeda.

KEY

Ricardo Arbulú, president of the General Building Committee of the Peruvian Chamber of Construction (Capeco), says that the rise in the price of housing is due to the lack of supply in the market.

“In 2013 the increase was 10%, lower than the figure recorded in years past, and this 2014 up 8% for social housing projects are expected,” he explained. Estimated that more districts would encarecerían prices El Agustino, Ate, Carabayllo, Barranco and San Miguel.

It called for reducing the time and paperwork to run housing projects.

Recorded 90% decline in real estate projects

The president of the Real Estate Chamber of Venezuela, Aquiles Martini Pietri, questioned the political and ideological predominance of the logic that should prevail to solve the country’s problems. He noted that recorded a fall of more than 90% of the presentation of new projects by the private sector in the public and private banks.

He explained that Venezuelans have been overshadowed builders and lagging function contracts give the Chinese and the Russians; and now they have had to build on the islands of the Caribbean, and Central neighboring countries. “There is a clear discrimination against Venezuelan builders are asking what are the minimum standards,” he said.

In his opinion, today the Venezuelan housing market is practically zero and you cut off the possibility of having the Venezuelan housing through leasing. “Today he talks about a reform of the Leasing Act in own mouth Housing Minister, but begin to ideological parties that make it very difficult to arrange the rules appear,” he stressed.

He recalled that thanks to agreements between the Government and the camera got the throw Commercial Leasing Act positive results after two months of its promulgation.

In an interview with Union Radio regretted that, according to official figures, until the goal of 400,000 homes Housing Mission 50,000 have been built.

Colombians among the main investors in real estate in Florida

Citizens residing in Latin America – especially in Argentina, Brazil, Colombia, Peru and Venezuela – accounted for 32.1% of all property buyers in Florida, USA; becoming the largest investor group over Canadians (29.6%), Europe (26.6%) and Asians (6.9%). According to annual surveys of the National Association of Realtors (NAR English), Florida has established itself as a destination for investors, mainly in real estate, where 73% of properties transacted were bought by foreign , not necessarily reside in the United States.

“The price of properties in Colombia is very similar or many times more expensive than in Florida, which is why people think of buying and then use it on vacation (22%), rent it as an additional income (40%) or use for both situations (22%), “said Iliana Sagastume, Director of Miami Paradise Investing Consulting, who for fifteen years has specialized in advising investors in Latin America.

According Sagastume, according to the study and research of the NAR, the average price of a home in Florida is $ $ 193,000, however, international buyers, including Colombians, paid an average U.S. $ $ 216,000 during the past year by an average three-bedroom, two bathrooms.

“Many buyers are unaware that you need not be resident in the United States live in Florida or to acquire the assets and / or investments; If to this we add a consultancy in Transparent Spanish, without cost overruns, and the low price per square meter compared to other markets, configures an ideal place to invest in real estate with rates of recovery from 15% to 18% per year scenario, “he concluded Sagastume.

Historically high employment prospects improved construction sector CMIC

At the end of 2014, the construction sector recorded a record number of jobs, and with the approval of laws that could promote achieve 6.0% growth for 2016, estimated Bouquet entrepreneurs.

Under the National Infrastructure Forum 2014 of the Chamber of Deputies, the President of the Mexican Chamber of Construction Industry (CMIC), Luis Zárate said in that sense that they welcome that employment in the sector increased .

He noted that in the last three months, 150,000 jobs were recovered, leading to the conclusion that at the end of the sector would reach a record high 5.9 million formal jobs in construction.

He pointed out that if they go hand in hand with the three million indirect jobs will have a critical mass in the segment, conditions should contribute to increased investment in the sector, allowing reactivate during the second half of 2014.

Zarate said that the national infrastructure is another important factor that integrates and congruence to sector programs, plus it adds a long-term public infrastructure policies.

Recognized that good conditions for investment in infrastructure will have support on structural reforms, especially in energy, fiscal, financial and telecommunications, which later this year may already be operating.

He noted that if the interior the advance procurement and an important exercise of public spending coupled with private investment adds, is no guarantee that the second part of the year the Gross Construction Domestic Product to grow 2.0%, which is mount up the fall in 2013.

He explained that the recovery of the sector will have a strong foundation if it can update the legal framework that regulates the construction of basic infrastructure and eventually the involvement of the legislature, which will be crucial to promoting and improving the reform that the College Mexico Civil Engineers, the Chamber of Business Consulting and CMIC been proposed.

CMIC president also recalled the proposal to create a National Infrastructure Coordination, headed by the federal government with the participation of local governments, legislators, academia, business, development banks and serve to promote the National Infrastructure Plan.

With these factors, he said, certainly in 2015 the construction GDP will grow at 4.5 percent and 2016 growth would reach 6.0 percent, bringing the goal of the infrastructure is a lever of development would be met.

ABC to invest in real estate

Owning a property should not be synonymous with receiving a monthly income from your tenant. Investments in real estate can generate you great returns if you move away from traditional approaches, which are capable of generating assets, but are far from being highly profitable.

Moving away from the traditional perspective on this type of investment, it must be assumed that the real estate business is not to accumulate and flow properties. The money has to be in motion and evaluated against alternative investments, experts recommend.

To Jorge Castanyares, director of Housing Marhnos, the decision to sell should be clear and not have to “get attached” to the goods and have to reinvest.

Besides real property must be measured against other financial instruments. “If you’re giving less than the bank, you sell it and buy another to generate you more” recommends Castanyares.

In Mexico there are many families who have unproductive properties and believe that property is to remedy the evils; have them for years in case an emergency comes, because nobody has taught them to move the money or because they are afraid of spending that capital if you do liquid, but could earn more if you buy other says Adrian Loustaunau, author of More Money.

Real estate investments should be viewed as any financial action: “It’s just that you have to sell the shares when they are higher, because it is false that real estate will never lose their value, as in the stock market, there are cycles in the real estate, “says Castanyares.

So the secret is to rent and when it reaches goodwill sell.

10 considerations to potentiate your real estate business:

1 -. The best opportunities “are not promoted in both traditional media channels,” says Adrian Loustaunau, banks are seized debtors, portfolio managers, owners or real estate agents who know the potential of your property .

. 2 – Sometimes it is advisable to hire a real estate broker with good information because “you pay the 5% commission, but you get to 295% it will generate,” says Loustaunau.

. 3 – To take best advantage of the investment, you have to know when to sell, according to experts, the properties are recycled every so often.

. 4 – Since you buy a fixed price target to which you want to go, so you know when it’s time to sell.

. 5 – Try to find the property with the least possible previous buyers or intermediaries, since the gain of each is an additional cost to the ultimate customer.

. 6 – In all states of the country there are good opportunities. Industrial development in cities with more properties, but in small places there is a most interesting because there are fewer buyers.

. 7 – Times of crisis often opportune times to buy.

. 8 – If you have no capital to buy can get into investment property if you do detect interesting properties and charge commission to real estate brokers or private customers.

9 -. Applying for a loan to purchase real property and paid with the income is not a bad idea only if the corresponding financial runs are made, the required rates of return are calculated and if proper credit is chosen.

10 -. Reversing a preliminary contract is recommended against this income and apply for a secured credit, although it is more expensive than a mortgage, has the advantage that the loan is given against the applicant’s ability to pay, but studying the cash flow from the investment.

How to invest in property in Miami and not die trying

The settlements have been just for shopping. After nearly three years of assessment of value, it is not easy to find bargains in the real estate market in South Florida. Although the opportunities provided there.

According to the Miami Association of Realtors, an association that brings together 31,000 estate agents in January 2014la number of homes sold rose 9.8 percent from January 2013; condominiums while the increase was 12.9 per cent, from 1,124 to 1,269 sales in January this year.

This is just a sample of what has been happening in recent years. According to the association, 26 months makes prices rise paralas come in households, and 31 months for condos.

While the real state market in Miami continues to strengthen, the stock is also rising. Begins to be more balance between buyers and sellers. The average sale price of condominiums in the last year spent 155,000 to $ 186,000. The price of promediode ventapasó 290,378 to $ 361,000 in the same period.

“Prices will continue to maintain an upward trend in 2014 although the large number of committed projects (pre-construction) is a push in the supply side that should mitigate the growth of prices. It can be an interesting place to invest given the favorable market outlook year, “FelixLopez, president of Saggio Realty.

Something went back to normal on the streets of Miami. Are cranes and engine noise at work, showing billboards luxurious skyscrapers or modern communities with gardens, homes and businesses. A strength since 2009 and for a couple of years, had completely disappeared.

The inventory of condos for sale rose 20.1 percent in the last year. Of 2,790 units sold in January 2013, he spent twelve months to 3,352. This is thanks to the thousands of preconstruction condos that are turning to the market, plus the fact that prices have already reached more than enough for owners to see who has recovered its value, and consider that a good time to level sell.

“We’re seeing a very strong market because more than 50 percent of purchases are made in cash and this eliminates much risk that the market may fall in the future, unlike the times pre-crisis where most purchases were made with funding, “said Lopez.

A similar view sheds Carlos Rosso, Chairman of the Division of Condominiums Related Group. “After the crisis, not only changed the market but also how to invest and perception. Buyers are stronger, “he says.

The developer is selling more and more departments preconstruction or “well”. In this new phase of the housing market, more cash and deposits. “Something interesting is happening is that while we are building at a slower pace than before, if sold before a department with a 20 percent deposit, it is now up to 80 percent of the unit pays before we end the building, “exemplifies.

The real estate market is growing steadily and promising future. Since the 2009 crisis today, Miami has picked up and development is seen in all areas. From general construction, installation of good restaurants, hotels and cultural growth. For example, with the arrival of Art Basel and the museum opened Perez Art Museum, there is a before and after. “Miami has matured a lot as a city and has become more sophisticated,” sums Rosso, adding that “the value per m2 around U $ S 4,000 / 4,500, depending on the area. Thus a cheap compared to other cities like Sao Paulo or Buenos Aires, or even within the U.S. such as New York or Chicago “city.

From Fortune International, its founder Edgardo De Fortuna note that pre-construction sales are dominating the market. The buyer tends to go for the newest, most technologically and creative product.

“Demand for Miami come from all over the world, including the United States, which is again very strong. Prices are now above what we had before the crisis, in most markets Sub Miami (Beach, Aventura, Doral). In Fortune have a large variety of projects such as Nine Mary Brickell, SLS, 1 Hotel & Residences and Jade Signature “Fortune says.

Set a value per square meter is a difficult task. While TheRelated being offered in the market buildings as BrickellHeights, or Paradise Bay with panoramic views of Biscayne Bay (here acquired his apartment celebrities like Manu Ginobili or David Guetta), with a cost of $ 5,000 meter, Fortune International offers Jade Signature on SunnyIsles sand, with values ​​of $ 14,000 and further underground, which disparapor any possible average heaven.

The same applies to existing buildings. In BALHARBOUR, and St Regis resorts have units of $ S15.000 square meter, CanyonRanch in Miami Beach to U $ S 10,000; Akoya or U $ S 7,000. “Take an average price can be arbitrary. Depends on location, in case you are on the beach if facing the front or the sea, whether or not allow the temporary rent, or what state the building is, “said Marlis Smith, realtor working on selling used and preconstruction with a large portfolio of Argentine clients. And it shows in standard units listed buildings on the beach at U $ S 3,000 meter, as Seacost BurleighHouse or about 100 square meters and overlooking the front or partial sea view. “You can also get cheaper units away from the sea, even overlooking the bay or channel” he says.

For Smith, the most convenient shopping areas are north of SunnyIsles. “Hallandale and Hollywood have units on the beach, at lower values ​​SunnyIsles. It is an area that is renewed and where they are building large and complex as Costa Margaritaville Hollywood “he says.

ElíasPerchik, CEO of Miami Shooting ensures that property values ​​especially on the beach, and have already exceeded by much the prices before the crisis. “As land is scarce in first line and that is the main attribute of the crisis suba.Antes one could buy apartments notch brand for $ 11,000 meter, then the crisis was the same product in 5000 and now requested from the preconstruction 14000.Indudablemente brings a building with an innovative concept but that is not always the best deal, today there are 25 thousand units that are preparing to go to market, “he explains. To Perchik, there are many more possibilities of doing business in used units, and lists potential areas like Bay Harbour, oSingerIsland (Palm Beach).

Jorge Arvelo, president of Arvelo Accouting & Consulting Group, advises foreign clients who purchase properties in the U.S., before buying take into account certain potential costs as a lien on the property (indicates that the Government puts a clause in the Registry where the property has back taxes); While taxes (varies by area and by type of structure); taxes in the county or city where the property is located; and find out if the previous owner has debt on their maintenance fees, because you have to pay the full debt to do the transaction.

“There are several figures jurídicasa consider and depends on many variables. We always ask the purpose, those involved (if they are family, friends, etc..) If they expect to sell, rent, or live alone parainversión future. In addition it is important to clarify whether the entity wishing to create their own pay tax to the government commitments or if the owners will be responsible. The answers to these questions determine the entity to be created to buy an apartment. The LLC (LimitedLiability Corporation, for its acronym in English) are popular for being simple in their creation and are not expensive, but consider that the members of the entity are required to file taxes. This is where you can change a decision to create an LLC or a regular corporation, “says Arvelo.

As said, sometimes happens that evaluates each case individually and faces the fact that customers come with another investor information provided them, but does not necessarily apply to them because each case is different.

According to the legal concept that is purchased, then the taxes paid to generate an income or a gain on the sale.

“If you rent, made ​​money and created an LLC, will be taken of the individual tax rate, which varies whether married, single, with dependents, etc.. I could say that risk will be less than 12 percent unless the income is received material, which can upload your percentage. However, if you create a corporation will pay between 33 to 35 percent of profit (deducting expenses) but the owners do not pay taxes, “he explains.

In connection with the sale, again there is a difference when selling the company or a natural person. “Normally companies are entities based in the United States and is therefore retention is less or none. But when is a nonresident alien financial institutions retain a good amount, which is nearly 20 percent, “says Arvelo.

Miami ranks second property sales in the United States and holds the third place as the most populous Dowtown. The main foreign investors today are from Brazil, Venezuela and Argentina. They were the “rich Latin American” as they say, who helped resurrect the market.And Miami quickly returned to be strong and powerful as it was. Or even more.

Preconstruction Options

Brickell Heights: A condo in Brickell, comprising two towers designed by David Rockwell, with more than 690 residential units, office space, restaurants honored, recreational spaces for adults and children and art spaces. Still to sell some units in the first tower. It costs about U $ S 5,000 m2.

Paradise Bay: Two towers, 55 floors and 345 residences from 1 to 4 bedrooms, all with panoramic views of Biscayne Bay. Designed by award winning architectural firm Arquitectonica.Entre the amenities include swimming pools, cabanas, gym, spa, jacuzzi, party room, private cinema, tennis courts, and valet parking and security. It costs about U $ S 5,000 m2.

Hyde Beach: Is the playaquepuedealquilarsepordía undepartamentosobre. When will the owner has all the resort’s facilities and amenities (concierge, housekeeping, roomservice … etc) And then, the administration deals with your income and mantenimiento.Su cost around U $ S 6,000 m2.

Nine at Mary Brickell: Residential towers, 30 units available per floor and will be sold in the form of one, two or three bedrooms, with a size of 70-195 square meters. M2 Value: U $ S4.500

Jade Signature: In SunnyIsles, has the design studio Herzog & de Meuron Sea views, spacious terraces. Access to the resort, jacuzzi, swimming pools. Jade Signature offers luxurious amenities for all ages. The spa and terrace offer unique water even for a traditional spa facilities, including a Turkish bath, tropical showers stimulants, massage tables beachfront yoga platform surrounded by a Zen garden m2 Value: U $ S 13,000 .

What you should know:

The buyer pays no commission real estate. This will be charged only to the seller, and is 6 percent.

The script, called closing, has expenses that ranges between 1 and 2 percent of the value of the transaction.

When the property is rented, the owner remains responsible for paying the expense.

Every property has a property tax, which is around about 2 percent of the tax value (which is sometimes less than the actual value).

A Miami businessman pays $ 10 million for the mansion of Pablo Escobar

A Miami businessman bought Thursday a waterfront mansion that once belonged to the late drug lord Pablo Escobar, and said he plans to stay down coral pink which was seized by federal officials in the late 1980s.

Christian Berdouare, owner of a chain of restaurants in Miami, paid 9.65 million dollars for the property of 680 square meters located in a wealthy neighborhood of Miami Beach and stated that the location is the main feature of the property, not your history. “If something influences, negative” Berdouare said of Escobar’s relationship with the mansion. “I do not particularly like drug dealers and do not want to have that energy around me.”

U.S. authorities seized the property in 1987, with assets in real estate in Florida for nearly 20 million of the Medellin cartel. The seizure also included a condominium of 45 apartments, a three room near a popular shopping center in Miami, a ranch in central Florida and complex of 240 houses for rent near Fort Lauderdale who by then was valued at 9, $ 6 million.

Former Miami attorney Roger Schindler bought the mansion to the U.S. Government in 1990 by $ 915,000.

Escobar was among the most wanted drug traffickers in the world between the late 1980s and early posterior, along with members of the Ochoa family that controlled the poster. “The Czar of cocaine” was shot dead in 1993 in Colombia during a raid carried out with help of U.S. drug agents. It is unclear if he ever visited the property in Miami.

“According to residents of the sector and real estate agents, he was definitely here,” said Mirce Curkoski of ONE Sotheby’s Realty, Berdouare firm that represented in the sale. Schindler said that, according to some residents, there was much activity in the house when it belonged to Escobar. “I used to have boats that reached the courtyard sector,” he said.

The Spanish real estate sector enters a second bubble, the financial, the vulture funds

The Spanish property market fails to boot as already noted repeatedly Hispanidad, so there is still a large stock of unsold homes. But this a much more worrying aspect joins if possible is that the so-called housing bubble is exploding, but creating another bubble, in this case financial, created by vulture funds.

The sale of homes in February was limited to 25,717 operations, which fell 27.6% over the same month of 2013, according to Statistics on Transfer of Property Rights (STPR), published by the National Statistics Institute (INE) on Wednesday. In January the figure was not good, because the decrease was 23.2% and the February and accumulate 10 consecutive months of declines.

In view of these data there is no doubt that the housing market is not getting off in Spain, however, there are those who want to contradict statistics for their own interest, no doubt, as the funds have a contrary position.

Note that the sale of property has become a business opportunity for foreign investors, as Hispanidad told, for it buy one four properties for sale in Spain, ie 25%, according to Eduardo Molet consultant Estate of Spanish and foreign financial institutions and founder of Network Real Estate Experts. And the fact that housing has lower prices first attracted investment funds and then to foreign investors, including individuals. But surely, they will lose even more for the Spanish dares to buy.

These vulture funds are Fidelity International, which has followed in the footsteps of George Soros in Hispania and Property Assets purchased 1.9% stake. But it is not the only one, the underwriters of Hispania also follow in the footsteps of Soros, as Goldman Sachs International and UBS Limited have exercised their right to purchase 10% stake in the deal. Add to that that Hispania seeks investment opportunities in selling the assets SAREB and financial institutions.

But there are not only investments but also IPOs with a positive reaction, as The Wall Street Journal said. This behavior had it, for example, the two listed companies of real estate investment (REIT) and Lar Hispania Spain Real Estate Assets Real Estate, as captured in its output 500 million and 400 million, respectively. Besides this media said at least 15 real estate companies have already registered with the Spanish tax authorities, so it is likely that more IPOs occur.

This shows that our country is taking a subprime to Spanish, but unlike what happens in the U.S., do not buy property here to turn them into real estate, but to invest in stock market and over successfully. So talk bubble, as the Spanish property market in the real economy does not work, but is doing very well in its IPO. That is, you are creating a new bubble, but financial, driven mainly by investments vulture funds that can be perhaps more worrying than the existing one.

Brickell, the epicenter of the “boom” of building in Miami

The tour bus rolled over in a corner near Brickell Avenue on Saturday morning, while the guide pointed to a point that everyone got up to see: one of dozens of condominium towers under construction.

“I Think preconstruction condominiums as futures contracts,” the group said Peter Zalewski, founder of Condo Vultures and website CraneSpotters.com and preconstruction condos. “In New York traded shares. In Chicago traded on futures. In Miami trades in condos. ”

The condo market Brickell Avenue in Miami has become such an international sensation, expert condos Zalewski released the weekend during Art Basel tour buses for investors, realtors and anyone intrigued enough to spend $ 75 for a quick look. The tours were so popular that they were often duplicated in the mornings and afternoons, and recently added a boat trip along Biscayne Bay.

Far from castigating the last fiasco of overbuilding, developers of Miami seeking a new lap. Encouraged by foreign investors with large amounts of cash, 47 condominium projects are under construction east of I-95 in Miami-Dade, eight in the Brickell area, and many more in previous stages.

The new buildings, many designed by leading international architects, with the latest equipment, large terraces with outdoor kitchens and private pools.

This generation of condominiums have even higher prices during the last boom, sometimes in the range of eight digits. Overall, prices of existing condominiums have risen from their lows widely up to a new higher level of properties for sale.

In the zip code 33131 Brickell Avenue, the median condo price increased in 2013 by 22 percent to $ 415,000, compared to a year earlier, according to an analysis of the Miami Herald and the Center for Investigative Reporting in Florida. The median price of condos is less than 14 percent of its 2007 peak of $ 480,000. It has grown 60 percent from its low of $ 260,000 in 2009.

Despite the notorious crash of condos in Miami, when speculators defaulted contracts preconstruction units amid plummeting prices, Brickell condos were quite solid investments. The median price in the main zip code Brickell gained 44 percent since 2003 and is 14 percent below the peak.

Although their prices are extremely changeable, Brickell condos got more profit than a detached house in the 33146 zip code of the city of Coral Gables stable. In 33146, the housing prices were among the most stable in the South Florida during the crash (down by 36 percent from highest to lowest point) and the median price rose 33 percent since 2003, but still 22 percent below its peak.

NORTH EXTENSION

As Brickell’s gone running out of space, the wave of condo construction has spread Biscayne Boulevard through Edgewater, which is well advanced in its transformation from impoverished neighborhood to an urban center fashionably luxury highrise that leverage the water views and central location.

In recent months, the resale market Miami condo is showing signs of coming to a stop. After a long short supply, a surge of resale units have flooded the market in recent months, giving buyers more choices and greater freedoms.

FUNDING CHALLENGES

Despite the market recovery, traditional mortgage lenders remain wary of condominiums, both in Miami and the rest of Florida. FannieMae has stricter loan guidelines created especially for condominiums in Florida, which require, among other things, accumulated to a higher value than other residential mortgages.

In Florida it easy to get a loan for a second home that a condo that is the primary residence. A conventional mortgage for a condo investment in Miami? Never mind that.

“This is discrimination in federal housing market,” said Grant Stern, president of Morningside Mortgage. “People who establishes regulations for condominiums not understand the Florida market.”

Or maybe yes.

Much of the new condo building is far beyond the reach of most Miamians, even if they could get a mortgage, underlining the growing gap between rich and poor.

The current boom of luxury condominiums has revived the debate on the issue of housing affordability. “This can not be a city of millionaires,” said Mark Sarnoff, Commissioner of the City of Miami and president of the Downtown Development Authority (DDA), in a confrencia held in March in the old post office building at 100 NE 1 Outside Ave, homeless began to settle in for the night in their blankets and flattened cardboard boxes.

PAYMENT IN CASH QUEEN

Almost all demand preconstruction condo comes with plenty of foreign cash, willing to give advance 50 percent or more of the price during construction. Many come from Venezuela, Argentina, Brazil and Russia in search of a safe place to invest your money.

Supporters of deposit funding model buyer claims that it will prevent the kind of speculation that led to the crisis last time, when buyers with small deposits had plans to resell the units as they were ready. Only time will tell.

Almost all units delivered to buyers in the MyBrickell building Related located at 31 SE 6 Street, in the zip code 33131 they were put up for sale shortly after the building was finished in January, according to an analysis by Zalewski.

No need to worry, said Carlos Rosso, president of Related condominium development.

“I do not think that’s worrying at all. We know that buyers are people from Latin America. Some are renting their units, and others are trying to sell, “Rosso said. “The units are renting extremely quickly, and everyone has completed the purchase and came over here.

The price of housing in the U.S. goes up in March but the lowest rate in a year

The price of 20 major U.S. cities rose at the slowest pace in a year, another symptom that shows that the U.S. housing market remains weak. Specifically, the index S6P/Case-Shiller recorded an increase of 12.9% in March, the lowest increase in 12 months.

Experts estimate that despite this fact, the increased supply of cheaper housing, job creation and income growth over a sustained drop in funding costs could help attract more buyers. That said, experts expect that housing continues to rise.

The 20 cities showed annual increases, with 21.2% led by Las Vegas and 20.9% for San Francisco. However, Cleveland showed the smallest annual increase, with increases of 3.9%.

The price of housing throughout the United States rose 10.3% in the first quarter compared to the same period of 2013, slightly less than the 11.4% rise in the fourth quarter of 2013.