Miami Real Estate: Alex Shay on the Market, the Bust, and the Road Back

Miami Beach luxury real estate specialist Alex Shay has been in the business for over 20 years, working with hedge fund managers, surgeons, and some of the wealthiest buyers in the world. Premier Guide Miami sat down to find out what that means — and what comes next.

Alex Shay is a Miami Beach luxury real estate expert who has been in the business for over 20 years. Some of his clients include hedge fund managers and business executives. Some of Miami's most beautiful homes are featured on his website AlexShay.com.

PGM: You have been in the real estate business for a very long time. What lessons have you learned over the years?

AS: I have learned a lot. I have seen that in real estate, when dealing with luxury properties, you see the best in people and you also see the worst in them. I have been in this business for many years, and it is still a learning process. I am still learning today.

PGM: Is this the toughest period for real estate?

AS: The toughest since I have been doing it, and from what I understand, it is the toughest it has ever been, at least in our lifetime.

PGM: Do you think there is any chance of recovery anytime soon?

AS: Absolutely. I think we are at the bottom right now. I think we are going to stay at the bottom at least until the end of the year. After a while, maybe in 2011, things might start to even out, in terms of the market becoming more balanced. Right now there are many sellers and very few buyers. By the time next year rolls around there are going to be more buyers in the marketplace. Right now, people are still not spending their money.

PGM: Why is it so difficult for sales to go through right now?

AS: The most important thing about buying a home — people generally don't pay cash, they borrow the money from the bank, and banks are not lending money except to the most qualified buyers. A few years ago, if you had a decent credit score, you could get a loan. Right now you might have to come up with as much as 40% of the value of the property, whereas in the past you didn't have to put down more than 20%.

PGM: Tell me what contributed to the bust of the real estate market in Miami.

AS: Inflated prices — GREED — that's it. GREED.

PGM: Where would you say is the best place to purchase a condo in Miami?

AS: The most popular building is the one that has the least amount of condos — the Apogee on South Beach. The other one is the Setai on Collins Avenue. For Downtown Miami, the Icon Brickell would be a pretty good deal right now — some of the condos have gone down as much as 50% in price. They are beautiful apartments in a great area.

PGM: Is this a good time for someone who is interested in real estate to get into the market?

AS: The best. If you need money now, it is not a good time to start working in real estate. But for someone who can support themselves with savings for about 9 to 12 months and wants to learn — a year from now things are going to start moving a bit, so if you are prepared, that's great.

PGM: Do you have any advice for someone who wants to buy now?

AS: Make your best deal.

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