By Kirk Bangstad
The housing market in South Florida is definitely an interesting topic. Places like Miami and Fort Lauderdale are obviously great destination spots for tourists because of the tropical climate. Miami, being a big city, is home to a lot of lucrative job opportunities. This mix of good weather and career opportunity puts a lot of upward pressure on real estate prices.
On the other hand, South Florida could be considered one of the most dangerous places to live these days, because it gets rocked with hurricanes all the time. The threat of hurricanes would seemingly dissuade many people from trying to buy property there, especially because home owner's insurance rates are through the roof. Many homeowners have to buy separate insurance just for hurricanes, because nationwide insurers won't touch the subject.
Unfortunately, these downward real estate market pressures aren't nearly as strong as the forces increasing prices. This trend has actually caused most of the large affordable housing developers to shift business strategy because they say it is simply not profitable to create affordable housing. Affordable housing is generally subsidized by the government, which suggests that government subsidies are still not enough to turn a profit.
In short, you're probably going to have to pay a lot for real estate in South Florida. Now that that notion is settled, once you buy your new condo, it could turn into a great investment. The Miami area is developing rapidly, and is becoming a hotbed for new businesses and industry. The better Miami does from a business standpoint, the higher your condo will rise in value. Investing in some real estate now may be a good idea in the long run, because it does appear like the South Florida real estate bubble is about to burst anytime soon.
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