Collapse of ruble leads Russian buyers to Miami

Posted on 14 Jan 2015 in Miami What's New | 0 comments

MiamiMap

Before the December collapse of the ruble, a New York-based attorney noticed a trend of Russian buyers looking to flip real estate contracts — all in South Florida.

Property values ranged from $5 million to $12 million. The collapse of the ruble shrunk the combined wealth of Russia’s 20 richest by $10 million, according to published reports.

“They were offering to sell the contract at a loss, willing to take a fifty percent loss on a down payment as not to take a hundred percent loss. Due to the exchange rate, they did not have the liquidity to finish the transaction,” Attorney Marlen Kruzhkov told the New York Observer. “An apartment in Miami, even the most glorious beachfront apartment, is not a priority right now”.

Kruzhkov went on to explain that as a result of their economic troubles, Russian buyers are now looking past South Beach and considering less expensive apartments in the Miami suburbs where they can rent out properties more easily.

www.observer.com

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