Condominiums - Pre-Construction

Why would anyone be interested in a condominium that is no more than an artist’s drawings and a developers’ imagination. If you have ever built a new home you probably have experienced this same sensation and literally have taken a leap of faith hoping at the end of the day you achieved your objective. These decisions always require a great deal of fact finding and research. To truly be in on the ground floor of any development you must be completely satisfied that at the end of construction and the certification of occupancy is given; you have gotten what you have contracted for. Your primary objective may be purely speculation and appreciation, if so you will make a number of decisions that are in concert with that expected outcome. If your objective is to cash flow and use as investment property, you’ll want a unique strategy with solid assumptions of rental revenue and expense of operation. The fastest growing objective in condo ownership is in primary or at least secondary residential strategies. 

 The benefits of pre-construction are many and here are a few.

1. Pre-construction pricing-usually the best value throughout the process.
2. Selection of units and functionality.
3. Colors, carpet, tile, and appliance selection.
4. Securing upgrades like media rooms, surround sound, DSL pre-wiring, etc.
5. Choosing grades of carpet, appliances, and fixtures.
6. Crown molding, and the list goes on.

Regardless of your objective in purchasing a pre-construction condo, the timing sequence from reservation, to contract, to closing and occupancy must be fully understood. Let’s discuss the sequence with the most important dates. Before construction starts the developer will begin taking reservations for the opportunity at a later date to contract to purchase a particular unit. The cash requirement can be a little as five to ten thousand dollars to hold a unit in reservation. This money is obviously escrowed. Once the developer reaches his construction loan threshold of units reserved you will be required to enter into the contract to purchase and asked for 20% down including your deposit. With this accomplished construction begins. The reservation period can be, in rare occasions, as little just hours, or usually several months. The construction and closing dates vary with design, weather and other delays. Usually it takes about 18 months for completion.                                                 

Today, with many projects, people are contracting for units in pre-construction and if the developer allows, flip their units with the desired appreciation and never actually closing on the unit or even seeing it complete. The Gulf Coast is rich with a history of these transactions and has become the investment of choice by many people with money taken out of the market and on the sidelines collecting less than a percent of interest in a money market account. I am personally working this strategy with property in Destin, Pensacola Beach and Biloxi with my eyes open for additional opportunities. I have developed an exclusive client base that utilizes my experience and research to accomplish their desired results in buying and flipping condo properties for profit.              

Regardless of your objective, if pre-construction sounds attractive to you, I can guide you thru the maze of projects and help you make the decision that works best for you. One last thing worth mentioning is if you allow me to serve as your realtor, when, for whatever reason, you wish to sell, I will offer in writing a substantial discount for listing the property with me. Remember, “Living in the 21st Century” will be an adventure and I can help make it happen. Please call or email me with your questions and we will get started.

Pennacle Properties
366 Gulf Breeze Parkway
Gulf Breeze, FL  32561