The future of Miami Real Estate is shifting to high gear. It rides on the newest bandwagon of the real estate industry, which gives the fastest ROI, at less effort. Consider this:
You buy the property now before construction takes place. To hold the property, you can give an earnest deposit. As real estate value appreciates, so does the value of your property. By the time construction takes place on your piece of property, you have already recouped the earnest deposit you paid for it Begin to calculate for the value of your property after two years, before construction begins, with an appreciation value fixed at the rate of 20% annually. Now, this is what good investment is all about.
This is the drawing power of Miami Condo Preconstruction Real Estate Investment.
Investors are now putting higher stakes at condominiums that will be built in a couple of years. Miami Preconstruction designs a very lucrative package among investors such as no carrying cost prior to construction, no taxes, no fees - entirely, investment on a clean slate.
Since mortgage is not a requirement, a poor credit history does not hinder anyone from making a purchase.
Here is a sample illustration:
Here in Miami, a property developer will require a 20% deposit on the property to put a hold on it. Say, a $700,000 condo will require $70,000 upon signing and another $70,000 when construction commences. Total initial cash outlay is $140,000 which is 20% of the total contract price. Construction is due to start after two years.
In a conservative estimate of a 20% appreciation value per year, your property appreciates to $840,000 by the end of the first year. That's 100% ROI on your initial cash outlay.
What about on the second year? Your property is now close to a million dollars in value, and it all happens even before the first cornerstone is laid!
If it's long term investment you're looking at, Miami Preconstruction is a very viable option. Just be wary in choosing a property to buy, including its price. You may refer the matter to a realtor who understands the real estate business like the back of his hand. Developers may look at the whole picture of the sale from his own vantage point, and that is to get your signature on the contract. A good realtor can point out some leaks and show you ways to overcome them.
Developers market precon properties through real estate brokers who may channel these through their sales team. There is no formal advertising campaigns, only person to person approach Pricing is not pumped up as agents can receive between 10-15% for every sale.
Prices of precon properties that are advertised normally gets an add-on cost of 5-10% to cover advertising cost, and those listed publicly, thus also advertised gets an increase in its pricing by 5-10%.
A bubble waiting for its time to burst? Not likely.
Miami's investors come from international markets who enjoy an upper hand on the power to purchase Precon Condo due to weakened purchasing power of the dollar.
Foreigners also find Florida laws on real estate buying flexible and favorable to them. A surge of investors coming from upscale California and New York are eyeing oceanfront properties, as well as Miami Precon Condo as investment targets.
Whether you are a buyer or a developer, a cautious approach to investment and skill on proper risk management remain as flagships of survival in the highly competitive world of real estate.
Christiene Villanueva
Miami Real Estate
Christiene Villanueva - http://floridarealtyfinder.com
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