Pre-construction buildings and condos are some of the most sought after pieces of real estate on the market today. They can be found in many locations, especially throughout Miami and South Florida. Many of these hot real estate commodities have a low buy-in price in the pre-construction phase; for this reason and others, investing in pre-construction real estate is something you should seriously consider.
The Initial Price of Investment is Lower
Pre-construction real estate typically has a lower initial value than what the properties are worth after construction. This allows for a greater return on your investment. Buyers must beware however: due to terms in many contracts, you may not be able to sell off your stake in the property once it is constructed. However, you can rent it out to gain additional monthly income off your investment and once stipulations in the contract expire, you can sell off your stake in the now constructed property, and earn additional income on the appreciation of the property’s value.
The Returns Are Faster and Higher
Lower buy-ins coupled with the constant demand for housing and additional structures means your returns will be higher and come back faster in a healthy real estate market, such as South Florida. Because of the demand for housing in prime locations, such as Miami and Myrtle Beach, you won’t have to wait long to see a tangible return on your investment. It is also easier to sell a lightly used, or never lived in property than one heavily used or requiring renovation, so your returns will be higher in that regard.
You Can Get in On the Ground Floor
There’s something to be said for the first person to cross the finish line, or the first person to get on the road. You get to be that person when investing in pre-construction real estate. Not only will you get the aforementioned benefits, but you will also get a better deal by being one of the first investors to the table. You can also get in on a great opportunity at a low price, unlike investing in post-construction properties.
The best time to invest is in the beginning of any sales cycle, so if you are planning on investing in real estate, especially in the South Florida area, pre-construction real estate is the way to go!