Have you ever thought why pre-construction developments in Miami are always in high demand and get sold out quickly? It’s becoming more and more obvious that the Miami real estate market is rapidly booming despite of the rest of the country that’s still experiencing slow economic growth.
Lots of local as well as international buyers invest in pre-construction developments in Miami realizing that it’s an extremely lucrative way to capitalize on the investment by the time it’s completed. Most pre-construction projects take anywhere from 18 months to 2 years from ground breaking till completion. There’s no mortgage, no carrying cost associated with it ,no taxes, no expenses at all to be paid during these 2 years which is most commonly the time that it takes to build the condominium.
Typically the actual deposit to reserve a unit is just small and made in cash. Most Miami developers require 20% deposit (exact figures depend on each individual project): 10% at the time the contract is signed and the other 10% at ground breaking. So, a total of 20% will be your out of pocket cost until the time the project is completed.
Lots of my clients ask me the same question of why the developers are willing to sell units at way below market prices compared to a finished project. Again, developers are looking to raise the capital to start building the project. They usually need to show a certain amount of reserved units in order for the bank to get their construction loan approved to finance the project. As soon as the building process begins and the amount of available units decreases, this will start driving the prices up, thus, letting those investors who already reserved the units see an appreciation in price.
It’s been estimated that on average the rate of appreciation of condo prices in Miami for the past couple of years is about 20-25 % annually. This simple math means that if you buy/reserve a unit at $500,000 at pre-construction stage, in a year that same condo unit will net you $100,000 in appreciation.
There are a great number of luxury oceanfront pre-construction projects on Sunny Isles Beach: one of a kind luxurious residences- Mansions at Acqualina ( detailed info–>Mansions at Acqualina)
Stunning mix of high end technology and sophisticated innovative design-Porsche Design Tower.The most unique feature is a robotic arm that will take your car from the ground up in an all glass elevator so you could enjoy the scenery of Sunny Isles and place your car directly at your unit door. More info –>Porsche Design Tower.
Porsche Design tower,Sunny Isles Beach
360 degrees panaramic views offered by Regalia.With unparalleled opulence Regalia Sunny Isles Beach is an expression of magnificence, its enchanting architecture captures the rhythm and form of the beach along the Atlantic sea shore. The beach forms a scenic and natural boundary to the pool deck overlooking the ocean. The pool itself is framed by a margin of stone in soft natural colors. The cabanas, nestled among the dunes are framed by low privacy walls of stone with clear views of the sea. The Regalia Sunny Isles is a true paradise for those who seek beauty, perfection and a sense of home like living.More info–>Regalia.
In Aventura –for those who prefer to have their high end yachts at their door step Marina Palms offering up to 90 feet in length private boat slips.The Marina Palms Yacht Club is one of the newest developments in Aventura, North Miami Beach. Comprised of two towers, 24 story each with total of 468 luxurious residences ,Marina Palms Yacht Club is set to provide exclusive level of luxury and service to its future residents . Detailed info –>Marina Palms Yacht Club.
Marina Palms Yacht Club
Magnificent and ultra posh Echo in Aventura. The level of anticipation of Echo Aventura project has already brought 125 Millions in sales after 60 days that the sales office has been open. The completion of the project is set for December 2015 . Much anticipated first time collaboration of conceptual designer Carlos Ott and interior designer Yabu Pushelberg along with architect Cohen Encinosa came to fruition. The ultimate luxury Echo Aventura condominium will be located along south east corner of 188th street right next to Aventura Arts and Cultural Center. Comprised of 190 residential units with breathtaking water views ,this development will also feature 18 penthouse masterpieces with private rooftop terraces and plunge pools.Each unit will be delivered furniture ready . More info–>Echo Aventura .
Miami pre-construction projects are typically low risk due to the high volume and high demand among local as well as international buyers from South America, Russia, and Canada. Great weather, white sand beaches and warm oceans bring hundreds of thousands of people from all over the world to Miami and most of them are aggressively buying oceanfront or waterfront properties. They are ready to pay top dollar for breathtaking water views and enjoy the luxurious lifestyle .This would answer your other possible question on what projects are the safest investments and hardly lose their value in any kind of tough economy.
As I already mentioned, the reward for long term investors cannot be understated. Miami real estate market can be extremely rewarding if you choose to work with the right Realtor that will help you make knowledgeable decisions and help you net the greatest return on your investment.
Always use a local Realtor that specializes in the area to represent you. Going directly to the developer might not be the smartest choice since the sales staff has no obligation to be loyal to you and might not want to explore the best options that are beneficial to you and not to the developer. Your Realtor will provide a FREE service in representing and protecting your interests so why not get one?
If you have any questions on pre-construction projects in Miami Beach, Sunny Isles, Aventura,Bal Harbour and Brickell area, give me a call or simply contact me with questions you might have.