New Yorkers Choosing Miami over Manhattan

It seems that for many people, buying a second home comes before buying the first one. While New York real estate has seen quite a sever discount rates, down roughly 20 percent from their peak prices, New Yorkers are preferring to buy in real estate markets like Miami or Hamptons which are offering even heavier discounts.

Hampton real estate prices have dropped by almost 30 percent since 2006. Managing director of Nest Seekers International Barbra Weber said that reason for New York residents rising interest in Hamptons is due to the fact that they think if they rent out their homes in Hamptons in the summer they can get back up to 75 percent of the money they are outlaying a year for the house.

Miami real estate rates have dropped by 43 percent compared to the peak in 2006 according to a Mr.Peter Zalewaski a broker based with the Bal Harbour based Condo Vultures Realty. He further stated that around 1500 unique visitors were visiting their website daily and around 15 percent are New York residents.

With the current reality sector rates in Miami, one can buy 5 condos compared to only 1 in New York. New Yorkers are further taking advantage of foreclosures and short sales in the Miami Dade area. According to reports, properties in Miami’s Brickell area and in Aventura were as low as $160,000.

Although it might not be a good idea always to take advantage of fire sale deals in severely hurting markets because the maintenance of the house will go up surely. Not to mention, the windstorm and homeowner’s insurance policies are very expensive. In addition, if other condo owners fail up to pay their fees it might mean higher costs for everyone stated Professor Frank Schnidman director of the Centre for Urban Redevelopment Education in Fort Lauderdale.

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