MountainBiker, Yes I also think the condo investment is not very good. That is why the condos are all purchased by foreigners thinking it is safer to invest here in properties but those are the wrong properties to buy. I think they are turning all of them into rentals. So think about it. They invest $500,000 a 3 bedroom condo that pays $10,000 a year in taxes and condo maintenance so that is no more then a $1,000 a month. So that condo rents for about $3,500 to $4,000 a month. These are high end Downtown Miami condos.
OK so this is what they are thinking(the investors) The condo is paid off. They are making about $2,500 to $3,000 a month = $30,000 to $36,000 a year in profits on there $500,000, so if they invest $1 million they make at a minimum
$60,000 to $72,000 which is a lot more then a bank is paying them to put it in a savings account. Now if there is a collapse they think that they can rent it at a lower price or even rent it for cost of $1,000 a month to pay the taxes.
So that is there thinking. Right now they are making money renting them.