Miami Real Estate Blog

Time Magazine Real Estate Article Quotes Alex Shay Perspective On Higher Taxes

2009-06-30T14:46:00.009-04:00

The following is a reprint of a Time Magazine real estate article, quoting this writer:

Florida's Property Taxes Go Wacky in Housing Slump

By Tim Padgett Monday, Jun. 29, 2009

In Palm Beach County, buyers who find fire-sale bargains at foreclosed-home auctions — picking up, say, $400,000 houses for $100,000 or less — are realizing they're required in many cases to pay the same property taxes if the homes were still valued at $400,000.

In Miami-Dade County, to the south, where 1 in 4 homeowners is 30 days or more behind in his or her mortgage payments, residents are bracing for what Mayor Carlos Alvarez says could be an imminent property-tax hike to fill an almost $400 million budget hole — a move that veteran Miami realtors like Alex Shay insist would set recovery back. "It's out of line," says Shay, who recently took Alvarez to task on his Miami Real Estate blog. "A lot of people here are barely holding on to their properties, using credit-card advances to pay escrow, and the county wants them to take another hit?"

Welcome to Florida, the land of no income taxes — and killer property taxes. Whether it's a nightmare for someone who just purchased a Florida foreclosure or a tax hike that proves the last straw for some struggling homeowner, it's bad news for the individual, and increasingly for the state. It's also a painful reminder of the halcyon days when Florida's economy could lazily rely on soaring real estate prices — and related taxes — to pour ever more money into government coffers. Now local governments say they're broke, thanks to the housing bust, and many are trying to maintain the lofty property-tax rates levied during the housing boom or even increase them — even though that could exacerbate the housing bust.

Truth is, a dysfunctional property-tax system has been haunting Florida, if not many other states, far longer than the recession has. Over the past generation, Florida's explosive but fecklessly managed growth drove up real estate values, and therefore property taxes, beyond the reach of more and more families. In the 1990s the state adopted a "homestead" measure which, when homeowners become eligible for it, caps their assessed property-value increases at 3% a year (part-time residents don't qualify). But when houses are sold, a far higher base assessment usually applies, creating absurd situations in which neighbors with similar properties pay wildly disparate taxes. And during the boom, in expensive markets like South Florida, homeowners who had yet to qualify for the cap often saw their property levies double in just a few years — a big reason half of all South Floridians in a 2007 Zogby International poll said they were considering moving out of the state.

But lately the situation has gone from bad to, well, perverse. "One of the frustrating paradoxes of the recession is falling real estate markets and rising property taxes," says Kurt Wenner, research director at Florida Tax Watch in Tallahassee. A 2008 state reform, as well as another scheduled to go into effect next year, has reduced some of Florida's property-tax burden by making the cap more generous and accessible to more residents. But because of arcane provisions in the homestead law, government appraisers can tell a homeowner that although his house's current market value may be as depressed as a Florida sinkhole, its taxable value is still high or rising. More important, many of the state's county and local governments are raising their millage rate (the rate per $1,000 of assessed value that determines the property-tax bill) to make up for budget shortfalls.

One element of confusion, if not contention, is the tax bill due on dramatically discounted homes bought at foreclosure auctions. Those purchases, which represent about 40% of new home purchases in Florida now, are driving any home-sale revival the U.S. is seeing (even if they also help drive down surrounding home prices). But in many if not most cases, people buying foreclosed homes have budgets "that can afford the taxes on a $100,000 house but not necessarily a $400,000 house," notes Brian Paul, CEO of the Realtors Association of the Palm Beaches. Of course, Palm Beach County executives take a different view. "Introducing foreclosure into the [property appraisal] equation may be an interesting idea," says John Thomas, director of residential appraisal at the Palm Beach County Appraiser's Office, but "people should remember that property assessments are made based on the surrounding neighborhood more than a specific house."

Of course, homeowners can appeal to their county's value-adjustment boards to negotiate lower assessments. And real estate experts like Paul say onerous tax bills aren't proving too large a hindrance to foreclosed-home purchases. The bigger concern is that during the boom, many local governments spent their revenue windfalls like sailors, which makes taxpayers less sympathetic to their budget whining. Mayor Alvarez insisted this month that "it's almost impossible that we can achieve an acceptable budget" without a property-tax increase. But because Miami-Dade residents saw so much official profligacy during the housing bubble — county commissioners were famous for having cops chauffeur them around town, which cost hundreds of thousands of dollars in police overtime — Alvarez's suggestion is being met instead by calls to further streamline the county's bloated bureaucracy.

Shaquille O'Neal's House On Star Island Sold To Naomi Campbell's Billionaire Boyfriend

2009-06-25T17:22:00.011-04:00

Shaquille O'Neal's house on Star Island, Miami Beach, one of the most exclusive locations in Florida, sold and closed on Tuesday for $16,000,000. The 2-story architectural masterpiece was previously owned by former Miami heat player Rony Seikaly, who sold it to Shaq. According to published reports, the property was purchased by super-model Naomi Campbell's billionaire boyfriend, Vladislav Doronin.

The property located at 26 Star Island Drive, is situated on a very large lot, measuring 106,888 square feet (just short of 2.5 acres) with 312 linear feet of waterfront. The 19,444 square feet house needs total renovation, as it has not been updated in years.

Star Island sits like a floating jewel in the aquamarine waters of Biscayne Bay, between the main land and Miami Beach. The waters surrounding the island are part of the Biscayne Bay Aquatic Preserve. Star Island is not only coveted for its supreme, unspoiled waterfront location and limited number of residents, but also for its extreme privacy. Accessible by just one bridge, the gated enclave boasts many famous residents as well as Miami’s wealthy elite.

Miami Beach Real Estate Foreclosure - Scott Storch's House

2009-06-23T18:55:00.013-04:00

70 Palm Ave, Miami Beach Florida - Villa Ferrari

Miami Beach real estate foreclosures are happening far too often these days, and Scott Storch' s house on Palm Island, named Villa Ferrari, is next. The Miami Beach mansion, 18,000 square feet of house on a 30,000 square feet lot, located at 70 Palm Ave., will be auctioned off at the Miami Courthouse in downtown Miami this Friday, June 26.

Mr Storch, a well known music producer, who has worked with stars such as Beyonce Knowles, Mariah Carey, and Paris Hilton, purchased the Palm Island estate for $10,500,000 in May 2006. As the real estate market began to lose value, and Scott Storch fell on hard times, with a reported drug addiction, his problems began to mount. According to several newspaper articles, the young Mr. Storch is recovering at this time.

The house has been in foreclosure for many months, and is no longer what it was when it was built just 5 years ago. It needs some renovation, and, although a number of prospective buyers have viewed the home, there have been no takers to date. The final judgement against Mr Storch was in the amount of $8,484,836.

Miami Beach Real Estate For Sale - Luxury Homes Are Plentiful

2009-06-19T21:00:00.018-04:00

Miami Beach real estate sales have been sluggish for almost 3 years, and the trend continues today. Some sellers are still asking buyers to pay $1,000 or more per square foot of interior living space, in areas where waterfront homes are selling for more like $700 per square foot. The inflated prices have slowed the luxury Miami Beach real estate market to a standstill, with few closings taking place, and an over-abundance of luxury waterfront homes for sale.

As of today, there are 43 waterfront homes for sale on the Venetian Islands, as compared to 40 properties that were on the market in February 2009. The four Sunset Islands have 18 waterfront homes for sale, as compared to 14 houses for sale 4 months ago. In February, there were 31 homes for sale on Palm Island and Hibiscus Island, and today there 30. On North Bay Road, there are 19 bayfront properties listed for sale, compared to 16 that were available in February.

Numbers don't always tell the entire story, but those people who were involved in the Miami Beach real estate market in 2004, may remember that there were relatively few homes for sale in those days, and when homes were listed, buyers were often outbidding each other, and homes were selling for the asking price, and often, for more than the asking price. When a property was listed, it didn't take very long to sell. It's a far different story in June 2009, so one would think that sellers now "get it". They don't.

Asking prices are still inflated. Part of the fault lies with realtors, who are willing to accept listings at almost any price, in order to prevent other realtors from taking the listing. When a seller tells an agent that he/she wants to sell the property for 50% more than the realtor knows they could possibly hope to get, the agent goes along with the seller, and secures the listing at the inflated price, hoping that the seller will lower the price in coming months. The results of this practice are evidenced in the stragnant luxury real estate market we are presently experiencing.

For buyers who have the money, it's a great time to buy property, because a buyer can easily have his/her way with a seller, often purchasing a luxury home for hundreds of thousands, or even millions of dollars less than they would have had to pay just a few years ago. REO's, which are bank owned properties, can be bought at bargain basement prices as well. In past years, very few luxury homes on Miami Beach were foreclosed, but not so anymore. Homes that were purchased for millions of dollars a few years ago, and subsequently foreclosed, can now be bought from banks at huge discounts. Oftentimes the same bank that owns the property will also take back a mortgage from the buyer.

Miami Real Estate Tax Increase Pushed By Mayor Carlos Alvarez

2009-06-07T17:18:00.023-04:00

Miami real estate taxes are going up, by the good graces of Miami-Dade Mayor Carlos Alvarez, who said last week, "It's almost impossible that we can achieve an acceptable budget with cuts alone. There is a real possibility of millage and fee increases.'' It is as if Miami homeowners were not in enough trouble already, with one of four Miami property owners being 30 days or more behind on their mortgage payments.

Miami residents remember well the boom years, when property values soared, and along with the inflated prices, millions of dollars more in property taxes were deposited into the coffers of Miami-Dade; taxes were not lowered in favor of homeowners, but instead the city found other ways to spend the windfall dollars received. Now that things have changed, and the money has been spent, Mr. Alvarez, a Republican, (the party that speaks of smaller government, less spending, and lower taxes), is going to raise taxes on suffering homeowners.

The reason for the increase is that Miami-Dade needs more money in order to provide a number of services. The only way to get that money, according to the Mayor, is by taxing suffering homeowners. The fact that Miami-Dade homeowners also have budgets, which they are unable to support, doesn't seem to matter to Mayor Alvarez. Covering the budget matters.

It seems like the Mayor is up for a fight with some commissioners who have already lined up against the tax increase. Commissioner Rebeca Sosa wants Miami-Dade to consolidate departments, cut some government jobs, and to eliminate some services, but is adamantly against a tax hike. Commissioner Javier Souto said that ''We need to adjust and squeeze. Tax increases at this moment are unthinkable.'' Ain't it the truth.

Miami Beach Real Estate Auction Scheduled

2009-05-31T11:11:00.068-04:00

Miami Beach real estate has slowly and steadily lost a substantial amount of its value in the past few years. Most homes are selling at 2003 prices, with a few exceptions, and the bottom is yet to be seen. Foreclosures on Miami Beach were almost unheard of a few years ago, but not so anymore. On Wednesday June 3rd, 2009, another luxury home is scheduled for auction at the Courthouse in downtown Miami.

The property, located at 5005 Lakeview Drive in Miami Beach, consists of a charming Mediterranean house with 6,000 square feet of interior living space, that is situated on a lot measuring 47,540 square feet, with 200 linear feet of frontage on the intracoastal waterway. The large family home was purchased in March of 2004 for $3,100,000, according to the Dade County Property Records, and is presently being offered as a short sale for $3,000,000.

The estate has been on the market for sale since September 2007, when it was listed for $6,500,000. Five subsequent price reductions brought the price down to the $3,000,000 being asked today. The property is unlikely to be sold at auction, because most luxury home buyers are still sitting on the sidelines waiting to see how the real estate market plays out. Literally hundreds of luxury homes are presently for sale on Miami Beach, and the buyers are few.

Home owners who really want to sell are going to have to come to grips with a very different reality, the one that exists today, not the one that existed yesterday. Prices of luxury homes on Miami Beach are still inflated, and sellers are reluctant to admit that they may have to accept 30% to 50% less for their property than they originally anticipated. For those who doubt, there are some interesting statistics that appeared on Friday in the Miami Herald.

According to figures released by the Mortgage Bankers Association, in the first 3 months of this year, Florida ranked first in the country in foreclosures, with 11% of of its mortgage loans in foreclosure. In addition, one of four borrowers in Florida were either late on their mortgage payments or in foreclosure during the first quarter of 2009. A report just released by Zillow.com, a web based real estate service, states that approximately 71% of home owners who purchased a home or condo in Miami in the past 5 years, are "underwater", meaning that the amount they owe on their mortgage exceeds the present value of their home.

For home buyers, luxury or otherwise, all of this is good news, because a buyer can practically have his/her choice. "Low-ball" offers which were once frowned upon by both sellers and realtors, have become commonplace in today's market. As Donald Trump recently said on Larry King Live, "There has never been a better time to buy".

Continuum Condo South Beach – Alex Birkenstock Buys Penthouse for $9.9 Million

2009-05-25T14:17:00.019-04:00

Continuum South Beach is one of the finest condo buildings on Miami Beach, standing 42 stories high, and located at the southernmost tip of South Beach. About 10 days ago, Alex Birkenstock, a German bachelor, and reportedly a member of the famed footwear Birkenstock family (although his New York realtor insisted that he is a “private hedge fund guy”, and not the Alex Birkenstock who recently departed from the operational business of Birkenstock), purchased a tri-level Miami Beach penthouse in the Continuum for $9.9 million. Birkenstock had no comment to make regarding his identity.

The 7,374 square feet, 5 bedrooms, 7.5 bathrooms condominium, on the 40th floor of the Continuum South Beach, boasts 360-degree views of the Atlantic Ocean, Biscayne Bay, and the city. The residence features 13 feet high ceilings, and a 26 feet high ceiling in the dining room, its own private elevator, and smart house touch panels that allow you to operate everything from the lighting to security to high-end audio and video systems. This most luxurious apartment in the sky is truly state of the art.

The Continuum is situated on 13 acres of some of the most prized real estate in the world, featuring 3 pools, 3 tennis courts, and 2 restaurants. Birkenstock bought the condo from Howard and Lilly Steinberg, who, according to the Dade County property records, purchased it in June 2003 for $7 million.

The Steinberg’s had been trying to sell the penthouse since March 2007, when they listed it for $25 million. In December 2007 they reduced the price to $21 million, and when they were unable to secure a buyer, they again lowered the price to $14.5 million at the end of November 2008.

Hibiscus Island Home Of Ponzi Scheme Swindler Scheduled for Auction

2009-05-19T22:43:00.058-04:00

Hibiscus Island Miami Beach Home - 394 S Hibiscus Drive, Miami Beach Florida

Hibiscus Island, adjacent to Palm Island, is a guard-gated island community, with 24-hour Miami Beach police security, and some of the most luxurious homes in South Florida. 394 S. Hibiscus Drive is the address of one of those homes, a luxurious 5,500 square feet luxury waterfront home on a large lot, which, up until just 2 months ago, belonged to the now infamous Edward Okun, recently convicted of bilking investors out of $126 million in an elaborate ponzi scheme.

In just about 10 days from now, the property is scheduled for auction at the Miami Court House. Okun, of course, is behind bars, while he awaits sentencing for the crime. He purchased the 7 bedrooms, 7 bathrooms Miami Beach home in 2005 for $5,500,000. The jury found Okun guilty of conspiracy to commit money laundering, money laundering, and conspiracy to commit mail and wire fraud, wire fraud, bulk cash smuggling and perjury.

A-Rod’s House In Coral Gables $11,000,000

2009-05-15T12:51:00.014-04:00

A-Rod's House Coral Gables Florida $11,000,000 - 181 E Sunrise Ave

A-Rod’s house in Coral Gables remains on the market for sale, after 8 months. New York Yankees star, Alex Rodriguez listed the home for sale in mid-December 2008 for $12,300,000, but quickly lowered the price to $11,000,000 after only 2 months. He purchased the property, located at 181 E Sunrise Ave, Coral Gables, FL., in 2004 for $12,000,000, and according to Dade County public records, there is a $5,500,000 mortgage attached to the home.

The mansion is one of Coral Gables’ finest, with 8,310 square feet of living area, situated on a 46,243 square feet lot, with breath taking ocean front views. The 6 bedrooms, 5 + 3 bathrooms home has been completely renovated, and is also for rent for a cool $35,000 per month.

First Time Home Buyer Tax Credit – Use It For A Down Payment On Your Home

2009-05-13T21:07:00.010-04:00

Tax Credits for first time home buyers were recently announced by the Obama administration. Yesterday, Secretary of Housing and Urban Development, Shaun Donovan announced that the Federal Housing Administration (FHA) told lenders to inform first-time home buyers that the $8000 tax credit to first time buyers can now be used as a down payment.

This is very good news to many Miami home buyers who have been saving up for their first home. It will be a real boost to the low end Miami real estate market, and may help the local economy, as buyers begin to renovate their recently purchased homes.

Of course there are some restrictions, the main ones being that the home must be a principal residence, and must be purchased before December 1, 2009. Before the announcement by Secretary Donovan, home buyers would have received the tax credit only after filing their 2010 federal tax return.

In addition to helping home buyers, and stimulating the economy, the extra money that first time home buyers will now have available for renovations, will also aid in improving the appearance of the neighborhoods they live in, and thereby boost home values in the future. For those who have never purchased a home before, and who have been saving for a down payment, there has never been a better time to buy.

Apogee Condo South Beach Sold For $6,000,000

2009-05-06T20:02:00.023-04:00

Apogee Condo, South Beach, located at 800 South Point Drive, is one of the finest condominium buildings in Miami Beach. With only 67 private residences in the heart of South Beach, the Apogee boasts 10 feet high ceilings in every condo, as well as a midnight kitchen in every master bedroom, and a summer kitchen on each balcony. Each floor shares 4 apartments, and has a private elevator.

Two days ago, a beautiful Apogee condominium on the 11th floor (unit 1104) of the 22 stories high structure, sold for $6,000,000, only $800,000 below the asking price, or a discount of about 12%. In former times, a 12% discount would be pretty high, but not so in the presently depressed Miami real estate market.

The Apogee condo was advertised as being located on the best line in the prestigious South Beach condominium building. A spacious 4,154 square feet of living space is divided into 4 bedrooms, and 5 bathrooms, with intoxicating views of Biscayne Bay, and Fisher Island in the distance. One of the finest features of this beautiful unit is a terrace, extending 11 feet beyond the apartment’s exterior wall, and measuring an ample 2,400 square feet. Not bad for a South Beach condo that just sold for $1,444 per square foot.

Pending Home Sales Jump Defies Expectations

2009-05-04T18:03:00.012-04:00

According to a report by CNN today, pending home sales nationwide, jumped by a surprising 3.2% in March over the previous month. The report goes on to state that overpricing seems to be ending, although, according to this realtor, that is not at all the case in Miami.

Some possible good news for the Miami real estate market is that the greatest gains in pending home sales is in the southern part of the US, which saw an 8.5% jump from February to March, and a 7.7% pending home sales jump from one year ago. President of the NAR (National Association of Realtors) Charles McMillan, said in a prepared statement “For buyers who've been on the sidelines and have good jobs, the market has never looked more favorable.”

No one can know for certain the exact time of a bottom in the real estate market, but there are signs that point to a recovery. More people are looking at properties to buy, more realtors are receiving more phone calls from more prospective buyers, than in the past 2 years, and more home showings are taking place. For the real estate market in Miami, that is very encouraging news.

Miami Real Estate - The Magic City

2009-05-02T19:05:00.029-04:00

Miami At Night ©2006 - 2009 copyright all rights reserved

The Miami real estate market began when Julia Tuttle, a local landowner, persuaded the founder of Standard Oil to expand his railroad to Miami and build his own resort. On July 28, 1896, Miami's real estate market was given life. Miami grew rapidly in its first 30 years. After World War II, Miami's real estate was fueled by the area's perfect weather and tranquil beachfront location. However, the real estate development was cut short by a destructive hurricane followed by the Great Depression.

In the mid-1930's, the Art Deco buildings were constructed and this boom in the real estate continued until 1942. After World War II, thousands of Miami's soldiers settled in the city. In 1950, the once called Magic City became the "Crime Capital" when thousands of gangsters and gamblers moved to Miami.

By the late 1980's, Miami rose to international popularity when a movie was set in the city and gave Miami the deserving attention it wanted and needed. People from all over the US moved to Miami and tourists were coming to experience the place. Today, Miami stands as the third most popular tourist spot in the US after New York and Los Angeles, and is once again fondly referred to as the magic city.

Gables Estates Coral Gables - Casuarina Concourse Estate $49 Million

2009-04-30T18:11:00.047-04:00

11 Casuarina Concourse in Gables Estates, Coral Gables Florida - Alan Potamkin's House

Gables Estates Coral Gables, one of Miami's loveliest communities, is an area with ultra-luxurious homes nestled in a neighborhood of 192 properties, and is home to former Miami Heat coach Pat Riley. Entering the guard-gated, exclusive community of Gables Estates, via Casuarina Concourse, and driving all the way to the very end of the peninsula, passing some of the most beautiful homes in Florida, one finds him/herself in front of, perhaps the most grandiose property in all of Coral Gables, 11 Casuarina Concourse, home of Alan Potamkin.

Situated on a 3.5-acre lot, the spacious 20,862 square feet house, with 8 bedrooms, 11 bathrooms, and 2 half-baths, faces the open waters of Biscayne Bay, with breath taking, testimonial views of Miami’s unmatchable beauty. It is no wonder that Miami is so often referred to as the magic city.

Last week, the estate was listed for sale with a price tag of $49,500,000, making it Coral Gables most expensive home. The property juts into Biscayne Bay and is surrounded by 880 linear feet of waterfront. Attached is a 150 feet long dock to accommodate a yacht of equal length. Replete with a lighted tennis court, adjacent to a private guest suite, which sits on it’s own acre, the estate was built to satisfy those who can afford the very best in real estate.

Some additional features of this marvelous Coral Gables mansion are an upstairs master suite with a full gym, billiard and media rooms, luitron lighting & a 12-camera security system. Any takers? Photos courtesy of Avatar Real Estate Services

Fisher Island Condo Sold For 60% Of Asking Price

2009-04-24T17:32:00.016-04:00

Fisher Island Condo at 7912 Fisher Island Drive Sold for 60% of the Asking Price

A Fisher Island condo, on the ground floor, just steps away from the ocean with northeast views of the pool, and cruise ships in the distance, and just a few steps from the beach, sold last week for $5,457,000, just over 60% of the $8,970,000 asking price. The finely designed home, features a master bedroom suite, with an adjacent gym, and renovated and expanded guest bedrooms.

The 5,600 square feet condo has 5 bedrooms, and 6 bathrooms. Originally listed in August 2007 for $12,500,000, the price was dropped twice, and the property finally sold for less than half of the original price. The sale should serve as a good lesson to those sellers who have a need to sell, but are still pricing their properties at inflated values, remaining oblivious to present real estate market conditions.

Fisher Island real estate encompasses a 216-acre private island residential community of unrivaled luxury and splendor. The classic, Mediterranean style, private residential community of Fisher Island is nestled in a tropical-lush island club resort. Here, residents discover the privacy and security of an island where cultures from 40 nations blend against the backdrop of a cobalt-blue sky and the Atlantic Ocean. This private Miami Beach community, with its own zip code, is easy to reach by boat, seaplane, helicopter or car ferry.

Florida Governor Very Upbeat On Real Estate

2009-04-18T10:18:00.022-04:00

As part of this year’s Great American Realtor Days, 10 Florida realtors met with Governor Charlie Crist in Tallahassee this week, where discussions took place regarding real estate trends and current market conditions. The Governor was very upbeat, and told those in attendance that now is the time to buy real estate in Florida. Governor Crist said, "It doesn't get much better than this. Supply and demand is going to come into balance here. Two to three years from now, people will be saying, 'Back in April 2009 I could have gotten that home for so many dollars’; so you don't want to wait. Prices have gotten as low as they can. Now is the time to buy, while the deals still exist."

The Florida Association of Realtors (FAR), an organization with 125,000 members, was represented by 1,000 Realtors at the two-day Great American Realtors event. Realtors also expressed their positive outlook, telling the Governor that according to data compiled by the FAR, existing home sales this February were up by a whopping 20% over the same period last year. In addition, February home sales statewide were up 17% over January.

There are a number of reasons why real estate sales are beginning to show signs of improvement. Mortgage rates have dropped below 5% in most parts of the state, first time homebuyers now receive an $8,000 tax credit, and more people are taking advantage of housing opportunities that have become more affordable. The economic stimulus package has also become a major plus, encouraging more buyers to enter the market place.

Al Capone House Miami Beach Still Pending

2009-04-16T00:23:00.022-04:00

Al Capone’s former Miami Beach home, located on exclusive Palm Island, is still a pending sale, according to the Southeast Florida Multiple Listing Service. The property was listed for sale in early 2006, for the first time in more than 35 years, and was on the market for 28 months, before it became a pending sale in June 2008. The closing is scheduled to take place within the next few months.

The historical home needs total renovation, and if not for city ordinances that prohibit the demolition of buildings of historic value, it would probably be torn down, and replaced with a new structure. The house sits on a large 30,000 square feet lot, with 100 linear feet of frontage on Biscayne Bay’s intracoastal waterway, with a view of adjacent Hibiscus Island.

The 6,103 square feet house was built in 1922, and is one of the oldest homes on Miami Beach. The asking price for the property was $6,800,000. According to a Miami Herald report, Henry Morrison, who owns the home located at 93 Palm Ave., purchased it in 1971 for $56,000.

Alonzo Mourning Sells Miami Home

2009-04-11T06:43:00.020-04:00

Alonzo Mourning Miami Home Sold For $6,000,000

Alonzo Mourning, retired Miami Heat player, and NBA star, recently sold his Miami Home for $6,000,000. Located in Coconut Grove, at 3525 Anchorage Way, the 5 bedrooms, 5.5 bathrooms, 10,121 square feet home, is situated on an 18,583 square feet lot, with spectacular views of the Biscayne Bay from almost every room in the house.

The closing took place only two days after the Miami Heat retired Mourning’s number 33 jersey. The house was originally listed in 2006 for $10,000,000, but the price was subsequently dropped to $8,750,000, before it finally sold for $2,750,000 below the asking price, a discount of about 31%.

A German couple, Timo and Georgia Kipp, who had been leasing the house since last August, purchased the property. Apparently, the Kipps liked it enough to buy it. Alonzo Mourning owned the house since 1996, when he paid $3,200,000 for the property.

Miami Beach Real Estate - One of Miami’s Most Expensive Homes

2009-04-08T00:34:00.015-04:00

1736 W 28 St. On Sunset Island I, Miami Beach Is For Sale $29,900,750

One of the most expensive homes in Miami Beach is for sale on exclusive Sunset Island I, for $29,900,750. Designed by Maurice Fatio, the 11,388 square feet home located at 1736 W 28th St., Miami Beach, is situated on a lot measuring 70,886 square feet, with 453 linear feet of frontage on Biscayne Bay.

The four Sunset Islands are located in the heart of Miami Beach, and the home is located on the tip of the first, and northernmost of the islands, one of the very best locations in the entire Miami area. The historically significant 7 bedrooms, 7.5 bathrooms house was built in 1936, and is designed in the Neo-classic style, with a contemporary feel. The 1.63 acres property is named La Tranquilla, and boasts sweeping views of the wide bay, an Olympic size pool, and the well-manicured surroundings of a tropical haven.

The previous sale of this most desirable home, was in June 2000, for $8,425,000. Less than 2 months later, the property was listed again, for $11,500,000, and in August of the same year, the price was raised to $12,500,000, before the listing was cancelled in April of 2001.

Stuart Geller Wins South Florida Top Home Designer Award

2009-04-05T15:39:00.049-04:00

Stuart Geller, founder and president of Geller Design Group, has won numerous awards in the Miami area, for excellence in interior design. Recently, the Builders Association of South Florida (BASF) gave Geller the coveted Platinum Award, for designing a wonderful residence in the Porto Vita (seen below), one of the finest buildings in Aventura.

Mr. Geller has also earned BASF Platinum Awards for a major developer’s model residences, as well as the Builders Association Best of the Best Award for a private residence. Geller has traveled extensively, and his expertise extends beyond South Florida, to homes he has designed for his international clientele in Mexico City, Caracas, New York, and New Jersey.

He feels that people who have trouble making their own design decisions, such as retirees, whose needs have changed, especially appreciate the gift of design. Stuart Geller wants people to know that although he is a recognized designer, one doesn’t have to be rich or famous to come to him. He said, “Sometimes people are afraid to come to a well-known designer, but we can work within your budget”.

Miami Real Estate Prices - What's Happening?

2009-04-03T14:19:00.020-04:00

60 La Gorce Circle On Miami Beach's La Gorce Island Sold For $3,200,000

A large lot on exclusive La Gorce Island was finally sold on Monday, after sitting idle on the market for well over two years. The property, located at 60 La Gorce Circle, on Miami Beach, was listed for $4,999,000, but closed for a much lower price of $3,200,000, a discount of approximately 36%.

The previous sale of the vacant lot was for $4,700,000 in August 2004, at the height of the Miami real estate boom. Eight months later, the property was again listed for sale, this time, for an incredible $6,800,000. When the seller failed to bring in a buyer, due to the inflated price, he was forced to reduce it 3 times, as the empty lot remained stagnant on the market for almost 2 years and 5 months, before Monday’s closing took place.

The sale is very interesting, in that it exemplifies just how much prices have dropped in the Miami area. Notwithstanding, if one takes a look around at asking prices of luxury homes and condos in Miami and Miami Beach, it becomes increasingly clear that asking prices are much higher than they should be. Sellers have evidently been somewhat oblivious to this fact, and it is becoming painfully obvious that if they want to compete in the present market place, they are going to have to become much more realistic.

Things have changed dramatically, and change is sometimes very difficult to accept. It is a buyer’s market, and it will be a buyer’s market, for the foreseeable future.

Four Seasons Condo For A Great Price $1,175,000

2009-03-27T16:20:00.011-04:00

Four Seasons Condo at 1425 Brickell Ave. For Sale $1,175,000

There is a great deal on a 2 bedrooms condo in the Four Seasons, one of Miami’s finest residences, and the tallest residential tower south of New York City. Standing 70 stories high, the Four Seasons Millennium Towers caters to those who demand the highest quality, as well as a luxury lifestyle.

The wonderful 2 bedrooms, 2.5 bathrooms apartment (see virtual tour), features floor to ceiling high impact glass, hurricane proof windows, and absolutely amazing views of the city and bay. Located on the 48th floor, unit 48C is on the market for sale, for an asking price of $1,175,000, after just being reduced from $1,300,000.

The sought after corner unit is equipped with top of the line appliances, such as a Miele stove top and oven, and a Sub-Zero refrigerator. The luxury condo is finished with marble floors.

Miami Luxury Homes - Why Don't They Sell?

2009-03-24T17:59:00.010-04:00

Luxury homes in the hundreds, line the greater Miami Beach community, which stretches from South Beach (1st and Ocean Drive) all the way through Bal Harbour (96th through 102nd St.), and is one of the nicest areas in all of South Florida; the real estate in this area is very desirable. So why aren’t luxury homes selling? Is it the economy? It is partially the economy, but homeowners, as well as realtors, are also somewhat responsible.

Miami Beach is an area with some of the most desirable luxury homes in Florida, and although the economy is in a big mess, with so very many foreclosures, luxury homeowners have not been as hard hit as many others, whose homes are valued at far lower prices. Nevertheless, sellers continue to list their homes with realtors, at inflated prices, which they cannot possibly hope to obtain. Many realtors, in their zest to secure a listing on a luxury property, will often list at almost any price that the seller dictates.

These actions hurt everyone. Sellers truly believe that the realtor they have chosen to work with would not be willing to take on a property, which they will not be able to sell, but agents don’t want to lose the listing to other agents who will market the property at a higher price, so they take the listing. The unfortunate result is that luxury homes have flooded the Miami market place at inflated prices, and sales are few and far between.

Most people prefer fact to fiction. There are some facts that sellers of residential real estate in Miami should know. For example, according to the Southeast Florida multiple listing service, there are presently 266 residential waterfront properties listed for sale in the greater Miami Beach area. Since January 1st of this year, there have been only 6 closings of listed waterfront homes, and 9 waterfront homes are presently listed as pending sales.

Homeowners, who hope to sell their property, are going to have to come to grips with the reality of the present, something that can sometimes be very difficult to accept. They must be either willing to market their homes at prices that will bring in buyers, or they really ought to take their homes off of the market altogether. Realtors, too, have to be a lot more determined, and must educate homeowners, and make them aware of actual market value, without fear of losing their client.

Miami Beach Luxury Home Owner Rips Off 600 People

2009-03-20T11:42:00.007-04:00

Edward Okun, owner of a multi-million dollar luxury home on Miami Beach’s Hibiscus Island, was jailed as a common swindler yesterday, after being convicted of bilking 600 people out of $132 million dollars in a Ponzi scheme. Okun was the sole owner of the now defunct Investment Properties of America and the 1031 Tax Group, both based in Richmond, Virginia.

During the trial, prosecutors presented evidence to show that Okun (in photo above at his 2005 wedding) used the money generated from his Ponzi scam, to fund a lavish lifestyle, which included a 5,500 square feet luxury waterfront home on a large lot on Miami Beach’s prestigious Hibiscus Island, as well as planes, cars, boats, and his lavish wedding in 2005.

Okun, 58, took the money that he collected from unwary people, who used his company to defer taxes on capital gains of property sales, and used it as his own. In court, his attorney said that Okun didn’t feel he did anything wrong, and that he had always intended to return the money.

Donald Trump Declares Greatest Time In History To Buy Real Estate

2009-03-18T00:58:00.009-04:00

Speaking by phone on Larry King Live last night, Donald Trump declared that this is the greatest time in history to buy real estate. He stated that there are great opportunities to buy property right now, and that he has just purchased a number of properties, and is continuing to buy more real estate. He said that even those people, who do not have a lot of money, could do well in this market, if they go to the bank and buy one of the bank owned properties, while asking the bank to take back the mortgage.

Trump seemed to be as disgusted with the banks as most Americans, and called them incompetent. He said that the government has stuffed the banks with billions of dollars, but the banks won’t lend the money.

When told by Larry King that 45% of Americans believe we are headed to a depression, Trump said that he wouldn’t go as far as saying there will be a depression, but he does think that things are going to further deteriorate, before they improve.

He approves of the job that President Obama is doing, he said, because Obama does need to keep the banks in this country alive. Speaking about the bailout money that the government seems intent on dishing out to large institutions, Trump said that he thinks that the money should be given to the people instead, rather than to the large corporations. He said that in two years, things would be back to the way they were in the “old days”, but with some restrictions.