Miami Beach is one of the premier places of condo building. All throughout the area, condominiums have risen, making it the site of choice for people wanting the urban lifestyle. But buying a condo doesn’t only mean cash out for you; in fact, you can also gain money from it.
Real Estate Investments
Investing on real estate can be very lucrative. It may seem risky, but it is actually safe since you are legally protected by law. It has been proven through history that wealth comes from real estate and some of the hottest pieces of property now are the high-end condos in Miami Beach.
Pre-Construction Investment
An enhanced way of investing is by entering the market in its pre-construction phase. Nowadays, this is said to be the most profitable real estate technique. Experts say that there is a high probability of making a profit of 10%-50% of your initial investment.
How It Works
Pre-construction investment basically means that you buy a property after it is developed and planned, but not after it is built. Developers usually sell the pre-constructed property for 5-20% below their appraised price when the property is done.
Depending on the negotiations, you can give a down payment for the said price, or you can pay for it in full. Either way, the property is already yours, and all you have to do is to wait for it to be completed. When construction begins, after you make a deposit, there are fixed periods when you would have to pay the developer what is left of your balance, in installments.
These kinds of discounts are given by developers to ensure adequate and steady funding of the project as it is constructed. The earlier you buy a property, the bigger the discount they can give you. Sometimes, there are additional benefits given, like voided tax charges for a year and unit upgrades.
Show Me The Money
Your profit, however, would come when the property is finished. After some time, or about two to three years of construction, the market value of the property will already have appreciated. This is when you get to see how much your investment has grown.
When the construction is complete, you can either stay and own the property,or you can sell it. Of course, since the property’s value has increased, you can then sell it for a higher price, compared to how much you bought it for.
High-End Miami Beach Condos
You can use the technique of pre-construction investment when acquiring high-end condos in Miami Beach. There are many developers that offer this kind of system in Miami. Although high-end condos would also mean bigger capital for you, take note that the profit is just as big; thereby making your investment definitely worth it.
Pre-construction investment is best for high-end condo units, since these are very much in demand and easy to sell. This is true, especially if your unit is in Miami Beach, where people flock and compete to acquire the best property deals.
[VanessaDoctor - Feb2008]
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