Miami Lakes Real Estate: An Excellent Investment
Miami Lakes is a rather large town of around 23,000 inhabitants in Miami-Dade County, Florida. This town is a CDP or a census designated place. A census designated place has no separate municipal government but is recognized as a physically separate area. The median household income is over $63,000 per year. The percentage of residents with bachelor’s degree or higher is well above Florida’s average. The median price of a single family home in Miami Lakes is about $400,000. The town is essentially a tribute to famous Miami Dolphins coach Don Shula. This is evident in The Don Shula’s hotel and golf, athletic club and restaurant.
Though the history of this place dates back to as recently as December 2000, the town of Miami Lakes is now a thriving part of Florida. The work on this town first began forty years ago with the resolve of Graham Companies to treat this place as a planned community. The Grahams still own a large part of the town in the form of office buildings, apartments, shopping centers and undeveloped land. Initially the place was an agricultural community which started flourishing much later and finally came to be the eventful business town it is now. The area is currently booming with parks, churches, schools and busy shopping facilities that allow you to live a wonderful life here. A terrific place to visit in Miami Lakes is Main Street and all its beautiful upscale shops and restaurants.
The real estate market in Miami Lakes is thriving since it is a favorite getaway place for businesses and families from all over the United States. Real estate here mainly comprises of single family homes, condominiums, townhouses. The design of the town is largely based on the new Urbanism Movement and ensures that residents and tourists do not have to strive too much to reach any given place . Going around the town is not an issue and every point is within walk able distance. This is why the real estate condition is good here. There are many first time buyers and tourists all across who want to purchase a property here because of the several opportunities found in the town of Miami Lakes. The price range of single family homes starts as low as $325,000 and goes up to about $2,000,000 with 157 homes in the Miami Lakes Real Estate market. There are currently 167 Condos and Townhouses for sale in Miami Lakes from $195,000 to the mid $400,000. Currently many more foreclosure properties are available so that people get the chance of purchasing them at a low price and later selling them off at a gain. The place is well connected to the Miami International Airport which makes it all the more attractive to many tourists and businesses. Real Estate prices have more than doubled in the past years are now stabling off in a current buyer’s market. Miami Lakes real estate is now regarded as an outstanding asset .
Hmmm...let's see:
median household income: $63,000
median home price: $400,000
That means homes in the Miami Lakes area are selling for over 6 times earnings. Can you say "bubble?"
Historic averages trend at 3.5 to 4 times earnings. Therefore, median prices in the area should be $252K, which is what a family making $63K can reasonablly afford.
Let's break the numbers down even further to get a better sense of how inflated prices in the Miami Lakes region are. A family earning $63K takes home roughly $3200 month after taxes. A home of $400K, with 10% down, equals a mortgage of $360K at 6.25%, or roughly $2200 monthly mortgage payment. Therefore, after paying their mortgage, the family is left with $1000 per month for additional expenses, meaning they’re spending close to 70% on their mortgage alone!!! Now we deduct taxes and insurance (say, $500) and that family is left with $500 per month. Deduct electricity and water, and we're down to $400 per month left for expenses. If they watch cable tv, we're down to $300 per month. If they have cell phones, we're down to $200 per month. If they have internet, we're left with $150 per month.
Okay, for the sake of argument, we'll stop there. This family is now down to a paltry $150 per month after deducting some basic expenses. From that remaining $150, they'll need to buy car insurance, make car payments, purchase clothing, household goods, home repairs, etc. etc. etc. Oh yah, and they’ll also need to EAT! This family is already deep in the red and they haven’t purchased a single grocery.
Conclusion: if the average family were to purchase a home in the Miami Lakes, they would quickly find themselves in serious financial trouble, and be spending way more than they earn. In a matter of months, they would be handing the keys to their home back over to the bank.
So the moral of the story is the average family can't afford the average home in Miami Lakes. Prices are inflated and fundamentally unsustainable. Therefore, prices will come down. This is simple economics.
I don’t know about you, but buying an overpriced asset that is ripe for rapid depreciation is hardly my idea of an "excellent investment."
Take care,
Monk