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Buying condos in Miami or new houses in Orlando is now one of the most desired investments by global investors. New constructions in Florida bring differentials and benefits never seen in the real estate sector.
Most of the time, the advantages of buying a newly built property far exceed those of buying a property that has been on the market for some time, even if this last option is “apparently” cheaper.
In this article we explain the main advantages of how buying an apartment or house by new construction works in Florida.
1 – Take Advantage of the Pre-Construction Prices
The most obvious advantage in buying apartments on pre-construction is the first price list.
At this stage, developers need to raise funds to start the work and, in this way, offer attractive discounts for those who buy at pre-construction prices.
In Miami and Orlando, this discount is even more transparent and the price lists are changed by phase.
The first price list refers to Phase 1. After some units are sold, the price list is changed to Phase 2 and so on.
By purchasing in Phase 1, buyers can already see a tangible increase in value, benefiting from both the price adjustments made by the developer and the natural appreciation of the market.
If you’re interested in learning about new developments in Miami and Orlando that are currently in Phase 1 (initial release), contact us, and we’ll send the opportunities directly to your email.
2 – Interesting Payment Conditions
Another key advantage is the installment payment method, which allows buyers to gradually pay over time until the construction is completed.
Typically, a development takes about 3 years from its launch to the delivery of the keys.
Until the unit is delivered, developers usually require only 50% of the property’s value, which can be paid in installments during the construction period. In most cases, a 10% down payment of the listed price is enough to reserve the unit
Once the unit is delivered, the remaining 70% of the balance can be financed through American banks at low interest rates, with terms of up to 30 years.
Below are the standard payment conditions for those who buy an apartment on the plant in Miami or Orlando:
- 10% of the purchase price to reserve;
- 10% at the signing of the contract;
- 10% at ground breaking (when the construction starts);
- 10% when the building reaches the last floor
- 10% at closing (keys delivery)
The major advantage of this payment structure is that the investor locks in the property’s price at the time of reservation, securing it at the initial listing price.
In Miami, the real estate market appreciates around 5% annually, a figure that includes all properties in the city. Pre construction properties, however, tend to offer even greater value, as their initial prices are typically promotional and below market value.
3 – New Property with Updated Finishes
Newly built properties in Miami also feature updated finishes, including cutting-edge appliances from brands like Bosch, Miele, and SubZero, premium modern flooring, and fully equipped cabinetry. These features make it easier for the new owner to move in immediately—or rent the apartment—without the need for costly renovations or the hassles that come with such work.
The most interesting thing is that, since you will be the first resident, there is no risk of finding hidden structural problems or repairs “camouflaged” by the former owner. Even if a property inspection is carried out, which is highly recommended, the risks exist.
4 – Buying an Apartment in Pre-Construction Can Help You Avoid Condo Fees and Property Taxes During Construction
Also consider that, in addition to all the appreciation of the property perceived during the years of construction, the investor will not have to pay any condominium and property tax expenses, unlike used properties, which optimizes the return on investment (ROI).
5 – Real Estate Leverage
An important factor, often not noticed by some buyers who are in questioning whether buying pre-construction properties is worth it, is the “leverage” factor.
The valuation of approximately 5% per year mentioned above (topic 2 of this article) is about the total value of the property acquired. However, the investor, during the construction phase, will have disbursed only a small part of the value of the property (5% to reserve).
Leverage consists of taking advantage of the total appreciation (over 100% of the value) while the initial investment was only 5%.
The leverage strategy is also maximized when the investor chooses to use bank resources to finance the remaining 50% at the time of the deed. In this article we explain in detail the real estate leverage strategy in Florida.
6 – Construction Company Guarantees and Compliance with Florida’s Latest Building Codes
The guarantee of a newly built property offers one less concern.
Just like when buying any new product, a newly built property (and everything that comes in it) brings guarantees from the construction company that you will not have when buying a property already used and for a long time in the market.
Construction companies in Miami provide guarantees that ensure their developments meet Florida’s latest building codes. These codes are designed to enhance safety, durability, and energy efficiency, giving buyers peace of mind that their property is built to the highest standards.
7 – Energy Efficiency
Properties that have been on the market for a long time can employ old materials, with little energy efficiency, which increases maintenance costs, especially the electricity bill.
It is not uncommon when extensive renovations are necessary to replace these materials.
New constructions in Miami are already delivered with efficient materials and updated energy technology.
Caution When Buying a Pre-Construction Property in Florida
Buying a property on the plant in Florida without the help of an experienced broker in this niche (launches and new constructions) can become a big nightmare!
Some investors believe that if they negotiate directly with the construction company they could get discounts.
It’s not true! On the contrary. It is precisely the experienced broker who gets the advantages and discounts for the buyer from the construction companies.
In more than 20 years that I have been working in the real estate market of Miami and Orlando, and with a lot of emphasis on launches and new constructions, I can guarantee that the risk of dealing directly with the construction company or developer is very high.
Why? In this article I list 5 benefits of hiring a broker experienced in launches and new constructions to guide you in buying a property in Florida.
Do You Want to Buy an Apartment in Pre-Construction in Miami or Orlando?
AMG International Realty is a global real estate company specialized in Florida and aimed at the foreign public. If you want to know more about how to buy an apartment or house on the floor in cities like Miami, Orlando or any other region of Florida, contact me right now and chat with me on WhatsApp: +1 305 761 2655 (Heloiza Arazi).
