Home » Real Estate

Miami Preconstruction Real Estate Florida Investing For Dummies

Oct 13, 2007
Preconstruction real estate investments are investments in 'yet to be completed' construction projects. Completion may still be six months, a year or two years away; may be even more. An investor is able to put in a small deposit to book/hold a condo or apartment in the project till it is complete. He can then sell the property to capitalize on the price appreciation from the date of investment.

The preconstruction investment is found quite lucrative to most investors on account of its simplicity and low risks. Since the investment is small and has to be made in cash, there are no mortgage related hassles or expenses. There are no taxes involved and the investor just needs to sit tight and keep a watch to see that his investment keeps growing with the appreciation in real estate prices.

Preconstruction investment in Miami is of particular interest on account of the rate of appreciation in property prices over the last few years. It has been observed that the average rate at which real estate prices have been rising annually in Miami has been close to twenty-five percent. In the case of an investment in a constructed house for rental income, there is no need to manage tenants in a preconstruction investment. And the absence of mortgage related issues means that a developer will sell a preconstructed condo/apartment unit irrespective of credit history ratings.

On the basis of available figures it is safe to assume that investing $100000 in a $500,000 condo in a preconstruction stage project in Miami can net in $100000 in price appreciation in one year. The down deposit required by the developer in a preconstruction property is around 20%. Therefore a condo priced at $500000 will require a down deposit of $100000; half to be paid at the time of contract and the other half at the beginning of construction. Based on a conservative estimate of 20% annual appreciation in real estate prices as per current trends, the under construction condo would be worth $600000 after one year. This would be a straight 100% annual return for the first year on the investment. Simply stated, the capital invested would double every year.

Preconstruction investment is especially attractive for Miami real estate because of the influx of large number of people into Miami including buyers from outside the US interested in taking advantage of the flexible rules available to foreign nationals who want to purchase Miami real estate. Waterfront property is the most in demand, being preferred by such buyers including those from States like New York and California and others.

Instead of rushing headlong in a preconstruction investment, it is very important to gain detailed information before making the actual investment. This is because every developer or every property is not desirable from the investment angle. A project may not be well analyzed or priced right. Therefore it is best to seek the services of a local realtor to overcome such difficulties while making a selection for the investment. Talking directly to the developer or his staff may not yield objective information.
About the Author
Real Estate Investments are easy when you follow the 4 simple steps by RealNet USA. We help you Find, Fund, Fix and now Sell your Real Estate Investment. To view actual property view our website http://www.realnetusa.com
Rating:
Please Rate:
(Average: Not rated)
Views: 118
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Accounting
    • Credit
    • Currency Trading
    • Debt Consolidation
    • Insurance
    • Investing
    • Leasing
    • Loans
    • Mortgage
    • Mutual Funds
    • Personal Finance
    • Stock Market
    • Structured Settlements
    • Taxes
    • Wealth Building
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources