The real estate market in Miami is thriving, and the optimistic outlook is thanks to a stable economy and an influx of Latin American buyers. In fact, as per a recent survey conducted by the National Association of Realtors (NAR), nearly 80 percent of all international sales are from Latin Americans. Pre-construction property purchases from Latin American buyers increased by 37 percent from 2010 to 2011. With this, it is at the top of the list of the most popular places for Latin Americans looking to invest in real estate.
With that said, you should be well aware that all pre-construction purchases are subject to change and require a great deal of diligence and thorough research. Here are some of the most important things that you need to know about pre-construction properties before making a purchase.
Become a Harlem insider - Sign-Up for our Weekly Newsletter!
There are certain trends that you need to be aware of when it comes to pre-construction properties. The prime location for the past few years has been Brickell, so this is where most developers are looking to construct new units. With all the development in this district, however, prices have increased drastically and many former residents and business owners cannot afford to live or work here anymore. It means that, although the area is busy with activity, it may not be the best option if cost is a concern.
From a geographical standpoint, luxury homes for sale in Miami are on the rise along the coastlines. Be sure to keep this in mind when you are researching your ideal property. This means not only neighborhoods like Fisher Island and Key Biscayne but also Sunny Isles Beach have all experienced an increase in prices due to their proximity to water. As a general rule, waterfront property is a wise investment, so be sure to take note of this when you begin your search.
The developer that you choose for your pre-construction purchase is just as important as the location itself. After all, there are many different players in the game and they each have their style. Also, every developer will give you a different discount if you are ready to jump onto the project early, to help them with their marketing efforts. The developer that you choose is going to have a direct impact on the finished product, so it makes sense to take some time and do your research before making a purchase.
In addition to this, you need to be aware of the conditions in which the developers operate. Are they reputable? Are they capable of meeting their deadlines? If you are not sure, speak to the people that have purchased from them before. You can also look into their past projects to get an idea of the type of structure they offer.
Choosing your unit
When it comes to choosing your unit, there are many things to consider including square footage, layout, and even fixtures and fittings.
Square footage – this refers to the total amount of space within each unit, not including exterior spaces like balconies.
Layout – is important because you want to make sure that the layout will work with your lifestyle and not against it. Consider if there is enough room for you and your family, especially if you have children or pets.
Fixtures and Fittings – this is your chance to make your pre-construction property in Florida truly yours. Choose things like flooring, light fixtures, and countertops that reflect who you are as a person. This can also help to raise the value of your unit when you decide to sell in the future.
Considerations at closing
In closing, there are many things that need to be considered to complete a successful transaction. From mortgage payments and interest rates to incidental expenses like taxes and fees, this is an extremely important part of the process because it will help you to set up your life in your new home.
Speaking with a bank or mortgage broker is the best way to get an idea of what type of monthly payment you will be committing yourself to and also, if applicable, any associated fees. This includes things like early repayment penalties and default interest rates that may come into play should you fall behind with mortgage payments.
One of the biggest decisions you’ll make when it comes to your pre-construction property in Florida is how you are going to pay for it, including down payment and credit score requirements. On average, most people finance their purchase with a mortgage interest rate between four and six percent; if possible try to get a loan with a fixed rate instead of an adjustable one because this protects you from interest rate fluctuations and can help you to save money in the long run.
As you can see, there are many different factors to consider when buying pre-construction property in Miami as is the case with most major purchases, it is always best to be prepared. Take your time with research and explore all of the options before committing yourself to anything.