1. Miami is a hot spot for pre-construction condos

Miami has experienced a significant real estate boom in recent years. The city’s thriving economy, favorable tax laws, and increasing international investment have contributed to the demand for new developments, including pre-construction condos. The city’s appealing lifestyle and year-round sunshine combined with appreciating property values are an ideal combination for investors or second homeowners. Besides that, Miami offers a wide variety of ultra-luxury condos that will appeal to the most discerning of buyers. While the latest wave of new construction condos targeted investors, this time around developers are delivering units with end-users in mind.

 

Besides a full list of all of Miami’s new condo buildings, we also offer supporting articles that help you make a better decision. We offer independent reviews, price rankings, and condo comparisons. On the right-hand side of this blog, we referenced some of the articles that might be useful to read.

 

2. Pre-construction condos can offer great value

Buying a pre-construction condo can be a smart investment as they often come with lower prices than completed units, and buyers can benefit from appreciation as the building is constructed.  This is not a given, however. In the last condo cycle, many buyers of pre-construction condos got burned with resale prices that were below the prices they originally paid. We can help you identify whether the asking prices of pre-construction condos are in line with the current market or will hold their value. We offer software that provides you with historic condo prices and can compare the price of a pre-construction condo with those of resale condos.

3. Risks Involved and Developer Reputation.

Pre-construction condos come with risks, including construction delays, changes to the building design, and the possibility of the project not being completed at all. Unlike a finished condo you never know what you will be getting. It can be hard to imagine the unit’s flow, functionality, and the quality of the finishes. These are however some of the condo’s most important features. Therefore it is important to work with an experienced realtor. All that glitters is not gold and your realtor should be able to see through glossy renderings. It’s essential to research the developer before investing in a pre-construction condo. Check their track record, reviews, and reputation in the industry. What else have they built and did they deliver as promised.

 

4. Branded Condos

One noteworthy trend that has emerged is the rise of “branded” condos, which have become increasingly popular in recent years. These condos are associated with renowned luxury brands (prominent names in fashion and the automobile industry—industries that bear little resemblance to real estate) offering an enticing concept for potential buyers. However, it is important to consider certain factors before embracing this trend. Buyers have displayed remarkable optimism regarding these branded condos, assuming that the brand’s reputation will translate into the quality of the condominium itself. To clarify, I want to emphasize that my concern is not with branding in general. Rather, my concern lies with condo projects that rely solely on their brand without prioritizing other important aspects such as floor plans, architecture, and finishes.

5. Location

Location is always important, also when buying a pre-construction condo. Consider the neighborhood, proximity to amenities, and accessibility to transportation. Is the area sufficiently developed, what are future plans, and can views be obstructed? When purchasing an ultra-luxury condo, it is crucial to consider whether the location attracts luxury buyers and offers the desired amenities that cater to their preferences. Certain areas have established themselves as renowned destinations for luxury condos, naturally drawing the attention of potential buyers. Consequently, buyers tend to focus on these areas while disregarding others.

 

 

 

 

 

 

 

 

 

 

 

Pictured here: Edition Residences, Edgewater Miami is one of the locations that attracts many luxury buyers.

6. Consider the unit’s layout

A condo residence is only as good as its floor plan. When buying a pre-construction condo, take a close look at the unit’s layout and floor plan. Make sure it meets your needs and lifestyle. Good quality condos offer functional floor plans, without death space and enough closet space. In the past, we have seen new condos being delivered that did not cater to end-users and were therefore resold as soon as they were finished. Buyers realized they did not sufficiently study the floor plan and it was not functional enough for their day-to-day lifestyle.

7. Understand the payment structure

Pre-construction condos typically require a deposit, and payments are made in installments throughout the construction process. Be sure to understand the payment structure and timeline in order to not default on any payments.

8 Expect construction delays

Although most of Miami’s reputable developers deliver in a timely matter, construction delays are common in pre-construction condos, so be prepared for potential delays that could affect your move-in date. The developer’s reputation will also prove their track record when it comes to timeliness.

9. Be aware of additional costs

In addition to the purchase price, there may be additional costs for upgrades, closing costs, and association fees. The developer’s renderings show fully finished renderings which is not how you will receive your unit. In order to finish a unit to the level as seen on these renderings you need to add an additional 10% -25% of the purchase price of the unit. Before purchasing a unit it is important to ask what level of finish is included eg floors, closets, blinds etc. Some projects come nearly finished while others really need some work to be properly fitted. For more information about finishing a pre-construction condo, please refer to our podcast with Design Solutions Miami.

10. Work with a reputable real estate agent

It’s essential to work with a reputable real estate agent who specializes in Miami pre-construction condos. A knowledgeable agent who possesses a comprehensive understanding of various developers identifies the most favorable floor plans, is familiar with the expenses involved in completing a unit, and is aware of the potential challenges of purchasing in pre-construction is indispensable. Buying a property in the pre-construction phase requires specific considerations and is not as straightforward as it may appear. Having sold numerous units in pre-construction, we are unafraid to provide honest insights on buildings or specific lines to avoid. If you follow my blog, you are aware of my outspoken opinions about many condos. To ensure you make informed decisions and avoid any potential pitfalls, I encourage you to contact me for candid advice without any filters.

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For more info:
Cristina Cesana
Tel. + 1 786.514.8150
floridadoc.immobiliare@gmail.com