All Forum Posts by: Christian Busch

Hi Kevin, I'm well-versed in the pre-construction market but also do existing inventory, it just depends on what the buyers are looking for. I like pre-construction SFH in the right areas with limited inventory. A client of mine purchased an SFH in Doral (Miami) recently at a good price. In inventory-constrained areas pre-construction SFHs can be a great way to get new construction at decent prices (the builders have real economies of scale so they can build cheaper than you and me). Feel free to message me if you want to discuss further.

I'm a real estate investor and broker (Florida and NY) and have spent a lot of time looking at preconstruction condos in South Florida. Here's my take on the topic: please comment so we can all learn more! 

My main advice is: if you invest in preconstruction, focus only on the most reputable developers who have experience in your local market! You are betting on them to build the condos to the standard they are promising you! 

**Pros:**

1. **Lower Initial Prices:** Buying early often means securing a unit at a lower price compared to completed properties. This can be particularly attractive if you invest in the first batch of condos a developer releases. Prices tend to go up quickly from there. 

2. **Customization Options:** Early buyers can often choose finishes and layouts and pick the floorplans and floors they love the most, adding personal value.

3. **Appreciation Potential:** Property values may rise significantly by the time construction is complete, boosting potential returns.

4. **Modern Amenities and construction standards:** New condos typically come with the latest features and amenities, appealing to high-end renters or buyers. They are also up to building code and won't require major maintenance for a while

**Cons:**

1. **Construction Delays:** Projects can face delays, affecting your investment timeline and cash flow expectations. This becomes especially critical in the current environment where you can earn 5% on your money easily and aren't tying up cash until the project is completed.

2. **Financing Risks:** High-interest rates on pre-construction loans can impact your overall return, especially with rising cost of capital. By the time the project is completed, interest rates may also be higher, impacting your ability to finance your condo. 

3. **Uncertain Future Costs:** Final costs, including maintenance fees and property taxes, may be higher than initially projected.

**Conclusion:**

Pre-construction condos offer exciting opportunities but come with inherent risks. Weigh the lower upfront costs and potential appreciation against the financing risks and possible delays to make an informed investment decision. Most importantly, pick the right developer to avoid major disappointments! #preconstruction #condos

I can recommend https://kelleygrantlaw.com/firm-overview/attorneys/ i just did a deal with Jerron. Good team and reasonable. Tell him I sent you and if you want a broker on the deal message me, I can probably save you some money on the deal!

@Stefano Vrolijk it all depends on your credit history, whether you have an SSN/ ITIN and how much you can put down. It's definitely possible to get a loan as a foreigner but the rates will be high(er) and the downpayment required will be as well. Probably 8%+ mortgage interest at 40% down to make a safe assumption. If you're looking at Miami, let me know, about 30%-40% of buyers here are foreign and a lot of them get loans.

Are you a Miami real estate buyer, seller, or just curious about the market? Here's a quick snapshot from the COVID outbreak of early 2020 to February 2024:

Key Trends
Condo prices: 📈 65% since March 2020
Single-family homes: 📈 75% since March 2020
Rapid appreciation mostly in 2020, stable/slight gains since
Market resilience despite rising rates and insurance costs
AI stock market-fueled wealth could drive more home purchases

My Prediction:
Prime single-family homes: Prices remain stable or increase
Condos: Flat unless truly distinctive

The Big Question: Are YOU ready to buy or sell?
Let me know your thoughts in the comments 👇

@Jay Lutz eventually most of the older buildings will be demolished. Some in prime locations will be bought by developers and others will probably deteriorate and eventually shut down - that may take decades though. Upkeep and HOA are challenging for these buildings.

Investing in affordable housing definitely makes sense if you can make the numbers work. There are still areas where you can buy units for $200k/ door but they require a lot of work usually and covering all operating expenses and interest payments can be challenging base on low-ish rent levels in some places.

The Miami market is continuing to show price growth and some inventory growth. Inventory for single family homes continues to be very tight and I see the best opportunities to invest in single family homes in established and emerging areas. 

There are a lot more condos coming on the market now: a lot of people are looking to sell after the strong appreciation in the past few years and there are thousands of new units being added by new development projects that are now being completed. 

I've looked at a lot of condos and houses in the past few weeks and from being in the field I can tell you that the transaction volume is picking up again - a lot of places are going into contract and prices are holding up well.

My two favorite investment opportunities right now are single family homes in the top areas that your budget can afford and condos in buildings that were launched 4-6 years ago, are now in the market and have a lot of selling pressure because people who bought pre-construction want to sell and take profits.
 

What's your take on the current market? Where do you see opportunities?  Let's chat about the market and if you need personal advice on Miami or Fort Lauderdale real estate just message me. 

@Account Closed this is an interesting project by a reputable developer. Make sure you check out the official website: https://miami.mercedesbenzplaces.com/ - the website you posted is by a broker who wants to represent you. Message me if you want to chat further on this, I'm in touch with the sales office already.