is pre-construction investment a good idea in SE. Florida?

Question

There's no doubt South Florida continues to be a hot market. The demand to move to a place with great weather (if you enjoy sweat down your face ), a lot of business opportunities, great hospitality and amazing food.

There are great opportunities in pre-construction that you can save up to 30% of the finished product, and preference. The primary benefit of investing in preconstruction condo projects is that it offers the purchaser the ability to leverage a large asset with a relatively small amount of money (typically 10 to 20%) and enjoy the real estate appreciation of the property over time without the carrying costs, such as interest and taxes.

Choosing the right neighborhood and project comes down to lifestyle and budget. Each neighborhood and condo building has its benefits.

Here are a few of my favorite projects:

Aria Reserve & Bentley Residence

Nerlande Joseph · Answer

It depends on where and when you buy.  The market is a little off now, so not sure about appreciation at this time.

I purchased a pre-construction condo as a rental investment in September 2020 for $257K in a suburb of Miami with 25% down; now value is estimated at 359K- 383K. I want to purchase another property, so I am debating if I should sell to get access to my down payment plus appreciation or hold.

The biggest downside was the wait for the property to be built, about a year (gave $10K deposit).

Jeremy Horton · Answer

So how would this work for regular people like me?

Account Closed · Answer

https://www.preconstructioncentral.ca/featured-developments

I am thinking of investing in one of these projects, what do you think?

https://www.preconstructioncentral.ca/lsq-2

https://www.preconstructioncentral.ca/pickering-city-centre

https://www.preconstructioncentral.ca/arcadia-district

Vanessa Dueñas · Answer

@Jeremy Horton it all depends what you're looking for in terms of investments.  I agree with @Nerlande Joseph and appreciation but it depends on the project, as well. I would make sure that the units in the projects are somewhat unique, not with similar floor plans throughout all the building and I know who is in the developing team.  Areas like Aventura, Brickell, Miami Beach, Downtown Miami are hot areas for developers and many projects are being sold out before shovels even hit the ground.

It comes down to what you intend to do with your investment. Some projects are strictly setting "renting rules", so if you're thinking of short term rental, luxury condos might be limited. Buy and hold would be a good strategy for luxury condos.

@Nerlande Joseph let me know if you would like me to look at what the CMA's are for your property and find out if its a good option for you to sell.

is pre-construction investment a good idea in SE. Florida?

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