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Russian Buyers Desperate To Get Out Of Contracts To Buy Miami Condos, Even At Significant Loss

Russian Buyers Desperate To Get Out Of Contracts To Buy Miami Condos, Even At Significant Loss

Some Russian buyers are so desperate to get out of contracts to buy Miami condos that they are willing to flip them at a fifty percent loss on their down payments.

The New York Observer wrote that many Russian buyers now feel that they are unable to close on these properties due to the crashing ruble. Others may be looking to liquidate their existing holdings, or place the units on the rental market immediately after closing.

One New York attorney claimed to be working on behalf of clients to flip contracts to buy half a dozen condos in Miami with prices ranging from $5 million to $12 million.

Russians tend to view real estate in the United States as a ‘safe deposit box’ to safeguard their assets, but with the collapsing Russian economy it has become difficult to maintain, according to the attorney.

 

(photo:andresmbernal/flickr)

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GHF
GHF

It’s pretty clear, Russian are trying to back out of their contracts because the ruble is crashing. Mid 2014 1 ruble use could get you $.03USD now $.015, half. The Russians are a huge driving force in the Sunny Isles real estate market.

anonymous
anonymous

Not a problem, Miami realtors have a boatload of Chinese that will buy.

WhyNotNow
WhyNotNow

Trust me, it’s a problem.

russian economy collapsing
russian economy collapsing

or safeguarding their assets from destruction.

Taxpayer
Taxpayer

Жил-был Иван… Так ему и надо!

XVS
XVS

This will devastate Miami Beach real estate. Russians were a major force there.

Jose Montoya
Jose Montoya

Is it only me or is this article so poorly written that it’s unclear what point is being made? Are the Russian buyers so desperate to buy Miami condos as “Russians tend to view real estate in the United States as a ‘safe deposit box’ to safeguard their assets,” or vice versa, do they want to get out of Miami contracts “due to the crashing ruble”? Please clarify.

DAREC
DAREC

it’s saying both. There was a big run of buying by the Russian’s because they “tend to view real estate in the United States as a ‘safe deposit box’ to safeguard their assets,” but for the units that are reserved or not yet delivered, that’s a major problem, bc the dollars that they buy w their rubles in order to close are so expensive that the loss in the currency exchange is not worthwhile and they’d rather walk.

anonymous
anonymous

The article is pretty clear.

One must question the intellectual level of Miami’s real estate professionals if they cannot understand this.

DR.VEGAS
DR.VEGAS

Putin’s fault.