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Miami Real Estate: Preconstruction Investment Guide

If you plan to invest in pre-construction real estate, where would you go?

Market experts would probably tell you to invest in real estate in Orlando, Las Vegas and Miami. When making your choice, it is best to first ask yourself what type of investor you are. There are at least three types of investors: 1) an investor who seeks higher profits despite higher risk; 2) an investor seeking rental income rather than selling houses; 3) an investor who never sees the property or is only on vacation.

If you fall into the first two categories, you may want to look in Miami. Miami is an interesting mix of cultures, with its long list of beautiful beaches, lively nightlife, and a selection of 5-star hotels and restaurants. It is a high class vacation spot. However, if you compare Miami to Orlando and Las Vegas, real estate prices have gone up a lot in recent years.

However, as long as you focus on pre-construction real estate, Miami is still a great place to invest. Take a look at two identical properties. One is two years old and the other is yet to be built. The oldest one has already had a variety of services to offer, such as retail stores, cafeterias, boutiques, spas or specialty restaurants. The one that is about to be built does not have these amenities, therefore, the price is significantly lower and more accessible for the investor.

Once the development of the new condo is complete, the amenities will soon be built around it, making it worth as much as the old condo.

Industry observers believe that the real estate bubble in Miami is about to burst. The effect of this prediction gave preconstruction real estate some kind of boost because it simply made preconstruction even more valuable. When real estate rises to levels as high as Miami, all investors will go preconstruction because they know that real estate will sell due to high demand. Since they bought it during the pre-construction state, the purchase price was well below market value.

Perhaps at the time of writing this article, many people have heard about investing in pre-construction condos and the large amount of profit these investments generate. There is another way to play the pre-construction investment game and this works well for those investors who have a large amount of financial resources to back them.

Investors can search for projects where the original investors are about to close. Original investors face problems during the final stages of their pre-construction investments. They will have to decide what action to take whether to shut it down, pay the debt service, or try to rent out their condo. These people have already made great returns on their investments and would rather take the profit and leave it without incurring additional expenses at closing.

Miami, despite the drop, is still a seller’s market. Many desirable properties remain on the market for only a short time, and the price continues to rise. This is why pre-construction investment properties are doing very well in Miami.

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