| Here's your buyer's guide to be a Success in the pre-construction investment market!!! |
| STRATIGIC INFORMATION FOR PARTICIPATING IN THE EXCITING CONDO REAL ESTATE PRE-CONSTRUCTION MARKET!
- Be the First buyer of the Pre-Construction Condo unit. Many times Condo units are sold 1,2,3 times before the final user makes the purchase. During each sale the price generally goes up.
- Purchase before or on the First day of public sales. Often the project developer "tests the market" right before the units are offered to the public.
- Be sure to have an Agent represent you and have that representative be the First in the line on sale day.
- In Florida you have 15 days to cancel your contract and receive a full refund of your deposit money. Purchase, & observe if the property has strong sales and if the prices go up. If so hold on - if not cancel your contract within 15 days for a full return of your deposit funds.
- You may often re-sell your Condo unit before the construction is completed, sometimes before it even has started, with a gain. This is called flipping units. In many cases you are reimbursed your deposit funds and your appreciated gain immediately. In other cases you may receive the gain at the completion of the unit & closing with the final buyer.
- Do not discount properties that are not on the water or that don't have a oceanfront view. Properties in redevelopment areas often have a lower initial price & lower required deposit and offer appreciation potential.
- The deposit is typically secured as it is held in escrow by a lawyer or a Title Company and is not released to the developer/builder until the unit is complete & you close on it.
- Condo Hotels - If the buyer desires to keep the investment for long term a Condo Hotel Unit maybe an alternative. The unit is part of a Hotel project and in its Hotel Management Program. The owner can generally use the unit for 3 weeks to 6 months & receive rental income from the balance of the year. These types of developments have become very popular in South Florida & the Caribbean islands.
- Foreign buyer's - South Florida is considered a Safe Haven for buyer's from South America, Europe and other areas around the world. Millions of dollars are going into South Florida from all over the world.
- Generally you can buy a Pre-Construction Condo with a 10% deposit with the contract & usually two Five Percent or Ten Percent down payments during the construction. You usually do not need to provide credit or mortgage qualifying information at the time of contract. Mostly any one with the 10% down payment can participate in this type of Real Estate purchase.
- We work with a number of different developers and have the knowledge to help you make an educated decision on your purchase.
- Developers will generally block out units for brokers, thus offering you a better selection of units. Agents find out about new properties before the general public knows.
THE BEST TIP OF ALL - You can use funds from your retirement accounts/IRA to buy Pre-Construction Real Estate. Your short term capital gains taxes are deferred because they grow in your retirement account. Proper tax planning is required to take advantage of this great opportunity. Review with your Attorney and Accountant to check out this opportunity. |
