Brickell Condo Investing | Which Brickell Condos Provide for the Best Yield?

Brickell Condo Investing | What to Look Out For?

As the US is opening its borders for vaccinated travelers we expect the next wave of buyers to come into Miami in Q4 of 2021. With such a high demand for Miami condos, buyers tend to be in an euphoric state. This bullish mindset often results in thinking all condos are a pot of gold, which they are not. Our motto has always been “Help our clients make better decisions” and in this blog we want to help you make a better informed decision when buying Miami real estate.

The Miami condo market is currently experiencing low levels of inventory and so does the Brickell rental market. We see rental units rent for 50% more than they did several months ago. This blog is written for investors who want to put the condo up for rent. We will show you how important it is to do proper research before you buy a Brickell investment condo. We often hear buyers ask “What units rent for the highest dollar?” While this is important, it is also essential to look at your original investment and the monthly condo fees.

We took 10 of Brickell’s most desired condo towers and looked at different units or “lines” (The term “line” refers to the location of the unit within the building. For example, unit 1001 is part of the 01-line and unit 1002 is part of the 02-line.) that rent the most. For purpose of comparison we only included 2 bedroom units in this study. The goal of this study is to show investors it is essential to look at the sales values as well as the rental values of a unit.

The 90-Day Brickell Real Estate Report for Q3 2021

Brickell Condo Investing | The Condos and Lines Included in this research with their main data.

Brickell Condo Investing | What offers you the best return on investment?

The below table is a simplified calculation as we cannot assume your monthly mortgage costs and other aspects such as potential changes or furniture you will add to the unit. We left these costs out and compared the average sales price of a unit to the average rental income while also taking the condo’s HOA fees into consideration.

Please notice the differences in the different units. For the price of an 02 line at Asia you could afford two units at SLS and receive more than $10K in rental income compared to the $7,250 that Asia unit is likely to give you. Or the difference in spending $600K at SLS which will provide you with a $5K monthly income and a lower HOA fee or that same $600K at Brickell Heights for about $700 less in monthly income.

Of course these are the 2 bedrooms and maybe another line in that very building or a 1 or 3 bedroom will outperform all the other rentals, but what we want to show is that there are several factors at play not everyone looks at. We often look at “The best condo” while that condo might not be the best for your rental income.

 Other Important Aspects when Buying a Brickell Condo

As market analysts we have written countless articles on what to be aware of wen buying a Brickell condo. There are condos or lines that are better for resale value and more likely to appreciate over time. Other important aspects are the arrival of new condos that might block your future views and of course the management of a certain condo. Although not always top of mind when buying a Brickell condo, the management and financial stability of a condo is extremely important. So when you come into town contact the David Siddons Group at 305.508.0899. We can tell you which condos are most likely to appreciate over time, which ones are well-managed, and which ones offer the best rental yield.

CONDO GEEKS, The most advanced analytics tool ever created for the Miami Condo Market