Many international investors are investing in South Florida. Is another bubble coming? I dont believe one is coming because banks have learned their lesson from 2006. When the bubble happened, the banks were lending left and right. They were not even qualifying the buyers. Anybody with a Social Security and a driver’s license was able to get a loan from a bank and purchase their home. They were even financing for down payments and closing costs. When the market crashed, the property owners had nothing to lose. All they had to do was to find another home and move out. Their credit was affected but there were even ways to get it solved because simply “everybody had the same situation”.
Today, the property purchases are different. 90% of high end real estate in South Florida has been purchased with at least 50% cash specially pre-construction real estate. If there was another crash in the market, the buyers will now have to decide if they want to keep making their monthly payment or lose all this cash they used to purchase the property. Buyers and investors know that everybody wants to live in South Florida or have a vacation home or investments. It is a hot market and I believe it will stay the same for a while. Just my opinion!