Buying During the Preconstruction and Construction Phases the Way to Go

Purchasing condos during the preconstruction and construction phases could be the best way to get waterfront property in Miami. A major hot-spot in recent years, Miami now has several high-rise projects underway – with plans for more to come. The time to buy is before building is completed, especially as these high-rise Miami condos often sell out before they ever open to the public.

But why purchase preconstruction? Florida’s real estate market is still strong with 20%-35% each year. According to a study released by the U.S. Census Bureau, 14 of the 100 fastest growing counties in the United States are in Florida. One of the biggest benefits to buying a condo during preconstruction is that the buyer can leverage a large asset with a relatively small amount of money.

When purchasing during construction, the rates tend to be a bit higher, but are still considerably lower than buying once the units are open to the public – if there are any units available on the market. Once a buyer goes to contract in this phase no further money is required until closing. The later part of the construction phase is when the biggest jumps in prices can be seen. Increases of up to 50% are not uncommon.

The first thing for potential buyers should do is to make a reservation. At preconstruction, prices are at their lowest. After this point the prices go up. The real estate developers keep the rates low during preconstruction and even at the start of construction so they can get a feel for how well the units will sell. At the contract phase the 20% deposit is required. Once construction is finished, the closing must happen to finish the deal. The remainder of the condo amount (80%) is due.

Projects like Epic Miami Residences and Hotel are an example of the type of buildings cropping up in Miami.