Missing in Miami’s new condo boom: Miamians
Miami residents? Not so much.
Conspicuously absent from the roster of buyers are South Florida residents.
That is primarily because condominium developers are requiring large cash deposits – typically 50 percent of the price of a unit – paid in increments during the construction process. The deposits provide cheap funding for construction, and developers say they play an important role in deterring speculators.
Most Miami residents don't have that kind of cash.
Indeed, few locals could afford to purchase the high-priced condominium units currently going up even if mortgage financing were available.
"We don't have a local market capable of making those kind of payments and progress payments," said Lewis M. Goodkin, president of Goodkin Consulting, a Miami-based real estate consulting firm.
"If it weren't for Latin American and European sales in Miami, it's really kind of a scary thing to think about: We'd have a very weak market. Not because people don't want to buy, because they can't get it financed."
Developers acknowledge there is an issue
Missing in Miami’s new condo boom: Miamians
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