One of Miami Beach's most eccentric homes, a 10 bedroom, two story mansion built to resemble a medieval castle complete with moat, drawbridge and gargoyles, caught fire this past Monday. The home has been unoccupied for the past two years.
Listed at $6,900,000 before and after the blaze, 4462 N Bay Road is still priced reasonably for the location. The lot is 25,427 square feet or 2362 square meters with ample linear water frontage of 145 feet.
Had the fire burned the home to the ground, it probably would have increased the property's value as it is and was considered a "tear down". Demolition and debris removal may cost $50,000.
This lot is may be a smart buy at (20% off list) for an investor who can hold it for 2-3 years and build a new home on the lot.
It has THE best views in Miami Beach; wide bay direct downtown views of Miami. Building a home may take 18 - 30 months (conservative numbers). Of course, you would need to decide whether to build a new Mediterranean Home or a new Contemporary home.
If you have the time, money and patience, there are still millions to be made developing luxury homes.
Of 21 waterfront homes and lots on N Bay Road currently for sale, only 9 are renovated homes.
From my experience with most Miami Beach home buyers in the 5-10 million dollar price range, they have built and renovated homes before and do not want to go through the process again. I show them 3-5 "fixer-uppers" in the 5-7 million range and they adjust their expectations quickly.
These buyers will pay a premium to buy a "turn key" waterfront home in South Beach.
Investing 1-2 million in downpayments and waiting 2 years to see a 100% return on your investment is not easy, but for investors with a love of real estate, the process can be fulfilling if you chose the right contractor.
In addition, if you are an end-user, you can build a home exactly to your specifications.
The burned down castle is not THE best priced per sqaure foot land on N Bay Rd currently, but I will list these lots and homes in my next blog. Have a great week.