How Much Value Does Ocean View Add, Not Oceanfront....Miami Beach
Hello, I posted this question in the landlord forum but they were not sure how to value it before I discuss listing with a realtor. I have a condo in miami beach that is 1 of 3 in the entire building with an ocean view. We are 2 blocks from the ocean but there is a building right infront of us that blocks the view for all the floor except the top floor. On the top floor there are only 3 units on the front facing the ocean directly and you get a clear ocean view. The comps in the building are $620/sq ft avg and all the 1 bedrooms have sold in the $480,000-530,000 range for my floorplan. All the other ones of course have zero view or a view of a building obstructing them. The average rents are $2800-3000/mo, I have it currently leased for $3500/mo so Im getting a premium.
A 2 bedroom in the building recently sold with no view for 720,000 and rented shortly after for $3300/mo.I know cap rates are low, but thats just miami, too many condos, not enough renters, profit is usually made on sale. Anyways Im trying to gauge what the value of being the only 1 on the top floor with a view is. 2 blocks away oceanfront condos are $1200-2000/sq ft in my neighborhood, south of fifth, which is the most expensive part of miami beach. This particular building is cheap bc its 2 blocks from the ocean,doesn't have beach service, but has full gym,valet,24 hour concierge. So what it lacks in amenities it makes up in the fact maintenance is only $.85/sq ft whereas the oceanfront luxury buildings all around are $2/sq ft in maintenance. Similar sized units can be $2000/mo in maintenance vs $680/mo here.
Anyways based of what im getting in rent, and based on how low maintenance fees are, and with the one of a kind view for which there are no comps in my building, of the 3 with ocean view none have sold in over a decade, mine I bought from a friend who was in a bind, getting a divorce. What would you say the premium would be for the view? Thank you