Choosing to invest in the luxury pre-construction real estate market in South Florida can prove to be a wise decision. Investing in pre-construction projects allow you to leverage your property for a longer period of time without incurring additional maintenance costs and taxes. With pre-construction real estate, you are given a window of opportunity to invest in the property of your choice at a fraction of what the cost would be if it were already completed.
Are you thinking about investing in the luxury pre-construction market in South Florida? The following tips should help guide you through the process.
Have a plan: Before investing in pre-construction, you should know what you want and how long you are willing to wait get it. Pre-construction projects take a lot of time to be completed. You should determine if you can be patient enough to get your finished real estate delivered to you before venturing into a pre-construction arrangement.
Choose a good location: When investing in pre-construction real estate, it is important that you carry out investigations to determine which locations will be profitable in the long run. You can scour real estate periodicals and blogs to get to know upcoming housing markets.
Contact your bank: Let your bank know that you will be investing in pre-construction developments in the near future. If you need a loan to pay for the project, then you should obtain the following information from your bank – your loan and repayment options, the maximum amount that you can borrow for the investment, and any special packages that they may have available to you.
Find a property: Having chosen a good location, you need to find a property that will ensure the success of your investment. At this stage it is important for you to talk to a reliable local realtor to help you find property options and choose the property that works best for you. Once you have chosen a property, you should actually carry out your own research to determine that the title to the property is unencumbered; the building materials are not substandard; there are no adverse environmental considerations; and there are no unfavorable government or administrative regulations on the property
Buy the property: After completing the above steps, you can sign up with a developer. You will then execute a sales contract (which is accompanied by a deposit, usually 10% of the selling price). Be sure to review the sales contract and other paperwork before signing. You can always negotiate any term you are not comfortable with. It is recommended that you review these documents with a trusted professional – a lawyer or an accountant. You can then proceed to closing, and you can expect a Certificate of Occupancy to be issued to you in due course of the development.
The intricate steps involved in investing in pre-construction are made much easier when you partner with a reliable and trusted property investment company.