South Florida is gearing up for another condominium boom, so in an article penned for the Miami Herald, Condo Vultures’ Peter Zalewski said it is crucial that the industry adopt five new measures to help stave off the bust that seemingly looms after every boom.
About 3,600 units have been formally proposed for South Florida, even as 4,700 units built during the previous boom remain unsold, according to Zalewski. And more developers are gathering funds to further increase inventory. Before the new units hit the market, industry leaders, lawmakers and regulators should enact certain policies to ensure transparency, he said.
Developers must list the architectural and engineered square footage for every unit, have “preconstruction sales” activity verified by a third-party, breakdowns of where buyers’ maintenance fees and closing fees are going, and finally, designate a representative who can answer prospective buyers’, brokers’ and lenders’ questions with facts.
Zalewski said he believes enforcing this transparency will help prevent another epic bust. [Miami Herald]