Monday, March 19, 2012

Miami Property Bottoms...

Fascinating perspective on the housing market fom one of my favorite financial bloggers.

"I was forced from my second and third rental condos. The owners didn't seem to understand that if the prices of assets had just dropped in half, so should my rent payments. Instead, they tried to raise my rent because otherwise, they couldn't afford their mortgages. It wasn't my fault that their 5 year ARM had suddenly re-set, but it was still my problem. I'm now in my fourth unit in 5 years. I'm sick of moving around like I'm in college. I refuse to overpay when I can rent—investing is all about being disciplined. All I want is to see prices drop to something reasonable. I no longer think that this will happen. Miami is now awash in Brazilians, Venezuelans and Peruvians looking to get money out of their countries. These are cash buyers. They don't need financing. While trying to prop up failed speculators here in the US, Bernanke succeeded in creating property bubbles all around the rest of the world. Quite honestly, Miami suddenly looks cheap to them. Property prices in their home countries are twice as expensive as Miami."