Real Estate Investing in Pre-Construction and New Construction Condominiums
Why People Invest In New Construction Condo
People invest in new construction or pre-construction condos because they can lock in the price for a piece of real estate (the condo) today for a finished product that will be ready 12 mos - 3 years down the road (duration of construction which will be longer for bigger buildings & sites that need demolition) in hopes that the market for the finish product at that future date will be higher because land cost & cost of building materials (e.g. concrete, steel, etc.) will be higher.
New Construction Condominium Money Timeline
This process has the added advantage of being able to put down just a nominal fee before the project is ready to go to contract of approx $5,000-$25,000 and at contract the remainder of the amount so that you have 10-20% down payment depending on what the developer´s bank requires. Then that is the only cost you will have until closing which will be 12mos - 3yrs away.
Advantages of Buying a Pre-Construction Condominium
One of the biggest advantages of investing in a pre-construction condo is that there are no worrying about renting or mortgage payments for the place until it is completed! And if you can sell it before you have to close then their are no or very little closing fees! (Note: Some developers charge an assignment of contract fee)
Northeast Florida and Jacksonville Condo Experts
So how do you go about finding these projects since so many are raising their initial price offering without you ever first hearing about them? Or even worse, being sold out!! Well contact us, your Northeast Florida and Jacksonville condo expert. Developers and Builders contact us directly to give us behind the scene details and opportunities.
How To Compare Pre-Construction Condominium Projects
How do you compare the different projects that are out there. Here is what you should be concerned with in regards to the purchase contract:
1. Can you assign the contract? If not you have to close on the property which means getting a mortgage and paying closing fees. With the popularity of the investing in pre-construction it is rare to find a contract that says you can assign because the lender for the developer won´t allow you to compete with the developer while construction is ongoing. The developer may allow you later on when they have sold out or close to sold out of the units
2. When can you put the property for sale? Essentially can you put it on the market before closing or do you have to wait to after closing? And the follow up question if you can sell it before closing ... How to show property while under construction?
Want to learn more? Contact us to learn more about investing in condos and the new projects underway.
Phyllis Frankel Realty Group, Inc.
1-800-999-0245
904-273-0125