Florida Gets Real
All the Florida fit to print for residents and future ones.
CAN YOU WRITE A $12-MILLION CHECK?
Even though Robin Leach is dead and Lifestyles of the Rich and Famous is a relic of a bygone time of Armani power suits and big hair styled with cannons of Paul Mitchell Freeze & Shine, you can still see Masters of the Universe and their modern-day castles on the shores of Miami Beach.
The Gray Lady reports that the UberRich are keeping The 305 luxury real estate market swimming in cash:
In 2020, there were zero Miami homes listed for $50 million or more
In 2021, there were two sales over $50 million
In February of this year, there were eight single-family homes in Miami Beach listed for more than $50 million
Jared and Ivanka live in ultraluxury Indian Creek Island, or “Billionaire Bunker,” near Tom Brady. All with a private security force and gated bridge.
Mark Zuckerberg and his wife just bought a $170 million mansion, the most expensive real estate transaction in Miami-Dade history.
Indeed, champagne wishes and caviar dreams…
But what does this “New Miami Gold Rush,” as The Times calls it, mean for mere mortals looking to buy in Miami or South Florida?
Even more, is there something unseemly lurking beneath all this glitz and glamor?
THIS WEEK’S FLORIDA STORY
South Florida, particularly Miami and Palm Beach to the north, has always been the epicenter of wealth in the state of Florida, but the sums of cash now sloshing among the well-heeled piranha are different.
From The Times article:
On Venetian Island, a homeowner recently told an eager buyer that she would consider moving for $12 million, even though the property was worth closer to $7 million. The buyer “literally pulled out a checkbook and said, ‘I’ll buy you out for $12 million right now,’’ recalled Julian Johnston, a Corcoran associate broker who witnessed the exchange.
Now tech titans are leaving California and a potential billionaire wealth tax for no-state- tax Florida. The Google co-founders are now joining Zuck and Jeff Bezos in Miami Beach.
Sure, robber barons gonna rob new digs…The Song Remains the Same, right?
Not really…
The red-hot luxe Miami real estate market does have implications for us downstream.
WHAT THIS MEANS…
The top 0.01% market is a cauldron of boiling toads, but if you’re up or mid-market, Miami is NOT an elusive dream.
Be prepared for inflationary forces from the Masters of the Universe, though.
If You Currently Live in Florida
Want to relocate from dull Theme Park Land to the excitement of Crocket and Tubbs’ old stomping ground?
Properties await you.
NYT:
The median home price in Miami, at $610,000 in January, was down 7.2% from the previous year, with homes sitting on the market for a median of 115 days, according to Redfin.
The Miami dream is still attainable, particularly overbuilt condos that can be had for a song.
If You’re Thinking About Moving to Florida
Expect inflationary pressure from fat cats for upper-class niceties like private schools and concierge healthcare.
Think again about overpriced Miami Beach. Pockets are sinking.
Between 2016 and 2023, 35 buildings along the Miami Beach to Sunny Isles Beach coastline were identified as sinking at rates ranging from 2 to 8 centimeters (roughly 0.8 to 3.1 inches), according to the University of Miami.
So you’re gonna rub elbows with Jeff Bezos and his wife. Maybe hitch a ride on his moon rocket?
Not so fast…
There is a seamy side to the Miami gold rush.
WHAT EVERYONE GETS WRONG
It might be a good idea to run a reference check on your Miami real estate partner.
Even their defense lawyers referred to the Alexander brothers as “a**hole scumbags.”
I am NOT saying all Miami realtors are sus, but big-market dollars do attract big-market egos and, shall we say, their foibles.
BUY MIAMI VIRTUE
Most people reading this can’t whip out a checkbook and write a $12 million check. But they can relocate to Miami from somewhere else in Florida or migrate south to The 305 as a snowbird.
Prices on homes outside of the superrich are dropping. You too can live slow and die old on the banks of Biscayne Bay, as long as you practice common sense and look not to partner with sharp-elbowed realtors who have deviant trappings.
Or you could look west to the Gulf Coast and call us for equally big-ticket digs and a saner lifestyle.
Who Are We?
Team John Garuti is one of the leading Florida real estate teams and has sold hundreds of homes in the state.
As Team Leader, I read and act on every reply.
— John
