South Florida Miami Preconstruction Investing - Eliminate the Risk

Miami, FL, November 15, 2005 --(PR.com)-- The booming U.S. condominium market has reached a frenzied pace, with potential buyers camping out the night before sales open for new developments in popular markets such as Miami, Orlando and New York City. Demand often results in sale prices climbing higher several times within a single day. *** NAR (National Assoc. of Realtors )

Buying South Florida Condo Preconstruction

Dramatic home-price gains should continue next year, according to MBA Chief Economist Doug Duncan. He also anticipates a jump in the homeownership rate over the next two years, with 2005 marking the fifth straight year of record home sales. According to Duncan, baby boomers will account for a majority of the buyers, as only 70 percent of them own homes at the present time. Additionally, he believes that interest rates will rise only slightly during the next two years, enabling many homebuyers to fit a mortgage into their budgets. Source: NAR

This is the strong trend we're experiencing right now and has been for the last few years. It's not showing any sign of slowing down. "Buy now and Pay later" is the main attraction for savy investors that are taking advantage of that explosive market such as Miami, Fort Lauderdale, West Palm Beach & Fort Myers. 

We're in a historic time in South florida real estate. Here, you will find the road map on how you can safely participate in South Florida Real Estate Pre-construction investment cycle and have the odds on your side. 

Success requires the following components: Knowledge + Timing + PROPER ACTION.    Also, as investors, we need to be aware of our emotions (Fear or Greed) that can drive us to miss excellent opportunities or in some cases sell too early and miss another price increase (I have been there). 

Buying Preconstruction Miami in South East Florida ?

You're buying before the construction of a property (home or condo) begins. Typically, buyers at this stage get discounted price compared to the price you buy when the building is constructed. When a developer is about to build a project, he would present the project to key brokerages. Then key brokerages (assuming they like the project), they present them to their customers. Key brokerages are the brokerages that developed good relationships with the developer. For instance, our team just won an award for Trump Sales as the #1 top producer for sales in the International condo-hotel project in South Florida. So, there is a mutual appreciation between the two teams which can benefit our clients. This is where you get what's referred to as VIP pricing (first phase). However, the market has been very strong, that almost every month we're seeing appreciation in prices. At this stage, the key brokerage clients can reserve a unit for a small refundable deposit.

Sometime later, the developer convert these reservations into contracts (binding contracts). At the contract stage, the developer wo
uld require 10% down payment. 

Miami Condos Preconstruction sales have been setting new records for the last 8 quarters.  

Typically, a minimal refundable deposit will secure a reservation in the initial stages of pre-construction.

When a buyer decides to proceed forward, the remainder of a percentage of the purchase price, normally 10% - 20% is due to bind the contract.

After construction begins, developers often schedule incremental price increases with the release of each new phase.

With buyers aware of increasing prices, demand tends to increase dramatically, which in turn lends itself to maximum appreciation opportunities.

Probable build out time ranges from 12-24 months, which affords buyers huge potential benefits in rising appreciation, and tremendous savings when purchasing early in the process.

You do not need to qualify for a mortgage. There are no financial Contingencies in the contract. The hope is to capture on appreciation as the market goes up without having to pay (carrying costs) mortgages, taxes, interest and the other expenses that you deal with if you own typical real estate investment. This has been the dream of many real estate investors in the past that had been burned out dealing with difficult tenants, finding tenants, increased property taxes and the many issues you face when you start investing in real estate.

For more details, contact
Andrew James
Miami Preconstruction
Florida Realtor specialized in Preconstruction
www.MiamiNewConstructionGuide.com
info@MiamiNewConstructionGuide.com
ph: 786-326-7776
19370 Collins Ave
Sunny Isle, FL 33160

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