Investing in Coconut Grove Townhouses – Values and Income opportunities
Coconut Grove Townhouses and their
Return on Investments
[Blog updated December 7th, 2015]
An Independent Analysis
⇒ Townhouses are in high demand | Prices are Increasing | Flipping is still possible
You might also like to read:
The high demand for Miami townhomes – the era of the townhomes has started
The best Coconut Grove Homes for Sale
The Value of Coconut Grove Townhomes
What makes Coconut Grove such a desired Real Estate location?
Coconut Grove is excellently located between Coral Gables and Brickell, Miami’s financial epicenter. Besides the location, Coconut Grove is well known for its excellent quality of life. Coconut Grove is a safe place with lots of police controls, gated communities and the country’s best private schools. The Grove received lots of attention lately due to the construction of two ultra-luxurious condo projects, creating an even more high-end lifestyle and bringing with them a great deal of new development; Park Grove and Grove at Grand Bay.
Coconut Grove Real Estate has always been a desired market but in the last few years this Miami neighborhood has become more and more in demand with buyers and investors from all over the globe.
Apart from the above-mentioned factors of safety, private schools and superb real estate, we have seen a huge influx of Brickell residents into Coconut Grove. Brickell is home to an always-growing number of pre-dominantly young professionals who, once they start a family, want to look for a different lifestyle. Therefore most young families switch their Brickell condos for Coconut Grove homes or town homes.
Besides the fact that Coconut Grove caters better to family life, most young families see real estate in the Grove as a better investment than the oversupplied Brickell condo market.
Coconut Grove town homes are scarce yet very sought after. As most single family homes in Coconut Grove surpass the $1M rank, most young families prefer the more affordable step into a townhouse.
Most of these typical town homes are located in the indicated area in the map here above. They are nearly identical town homes offering 3 Bedrooms / 2,5 bathrooms and around 2,200/2,300 Sq.Ft of living area. As townhouses are very scarce, prices have been increasing over the last few years. The months of inventory equals now 6.5 months, which means the Coconut Grove townhouses are in a neutral or balanced market but approaching a seller’s market. This means over the last year we saw a slight shift in the market from a seller’s market to a neutral market. (2014 Was a strong seller’s market with an inventory of 4.8 months)
Values are increasing for resale prices as well as for rental prices. In the graph here above you see townhouse values increase year after year.
Keep your eyes open for Coconut Grove Townhomes | REO’s or Fix – up opportunities
Coconut Grove Townhomes offer great investment potential. We have seen the below scenario happening a few times in front of our own eyes. We constantly see great deals in the Grove and we have had several success stories with clients. Call us for more information or to keep an eye on the market for you at 305.508.0899
- The above property was bought in July 2015 for $670,000 ($285 per Sq.Ft)
- This property was rented out within a month for $5,600 per month
- In case you have a mortgage to pay this mortgage would maximally be $536,000 (20% down payment required). Check your personalized mortgage rate here
|Costs vs Income||Yearly||Monthly|
|Closing costs (only for the first year)||$10,944||$912|
|Documentary stamps on the mortgage||$2,345|
|Realtor costs for rental (10%)||$6,720||$560|
|Total Costs first year||$40,114||$3,343|
|Total Costs following years||$29,170||$2,431|
|Total Profit first year||$27,086||$2,257|
|Total Profit following years||$38,030||$3,169|
For more information on these calculations please click here
Interested in more information or for us to track the market for you?
305 508 0899 | firstname.lastname@example.org
Meet the team and see our unique insights into the Miami Real Estate Market
No generalized opinions but an analytic approach