Jorge Perez: Large upfront payments for condos only works in Miami
The Miami Herald
Financing condo towers with large upfront payments in the United States basically only works in Miami, thanks to foreign buyers who don’t expect to borrow heavily for real estate, Related CEO Jorge Perez said Friday.
“It’s a very local market,” he told the University of Miami Real Estate Impact Conference. “It’s for people who are used to paying cash for most of their second homes.”
When condo loans dried up during the housing crisis, Perez and other developers turned to a financing model popular in Latin America where builders demand significant payments throughout the construction process. That’s a big change from the boom, when buyers could secure condo contracts for only 10 percent down or less.
Perez said the new model does not work well with U.S. buyers or others who are used to small down payments. “We see resistance to that (Latin American) model in even the Canadian market,” he said.
DOUGLAS HANKS
Back to Blog
-
UPS PICKS UP MIAMI DEVELOPMENT SITE FOR DISTRIBUTION WAREHOUSE: $31M
The Real Deal by Katherine Kallergis Prologis has sold a 43-acre development site west of Miami International Airport to UPS for $31 million. Records show UPS paid about $16 a foot for the property at 13200 Northwest 17th Street, which is slated to become a distribution warehouse. The land is approved for up to 5.3 […]
Read more -
DOUGLAS ELLIMAN RELEASES EXCLUSIVE 1ST QUARTER 2021 ELLIMAN REPORT FOR THE MIAMI, BOCA RATON, FORT LAUDERDALE, AND PALM BEACH MARKETS
It is with great pleasure that I share with you the just released first quarter 2021 “Elliman Reports” for the Florida sales markets, the leading resource on the state of these markets. Our market reports are produced in conjunction with Miller Samuel to provide you and your clients with the most comprehensive and objective market insight available. Boca Raton/Highland Beach’s brisk market conditions […]
Read more -
DOUGLAS ELLIMAN RELEASES EXCLUSIVE 4TH QUARTER 2020 ELLIMAN REPORT FOR THE MIAMI, BOCA RATON, FORT LAUDERDALE, AND PALM BEACH MARKETS
It is with great pleasure that I share with you the just released fourth quarter 2020 “Elliman Reports” for the Florida sales markets, the leading resource on the state of these markets. Our market reports are produced in conjunction with Miller Samuel to provide you and your clients with the most comprehensive and objective market insight available. Sales in Boca Raton/Highland Beach rose sharply higher […]
Read more -
DOUGLAS ELLIMAN RELEASES EXCLUSIVE 3RD QUARTER 2020 ELLIMAN REPORT FOR THE MIAMI, BOCA RATON, FORT LAUDERDALE, AND PALM BEACH MARKETS
It is with great pleasure that I share with you the just released third quarter 2020 “Elliman Reports” for the Florida sales markets, the leading resource on the state of these markets. Our market reports are produced in conjunction with Miller Samuel to provide you and your clients with the most comprehensive and objective market insight available. Sales in Boca Raton/Highland […]
Read more
