7 Tips on Pre-Construction Condo Investments

There are a variety of reasons why our clients choose to invest in Eighty Seven Park. Some of our clients select our condos for the primary purpose of using it as a place of residence. Other clients have the intention of acquiring a condo at Eighty Seven Park for rental purposes, where the property is leased out to tenants and provides the owner with a reliable stream of income.

In other cases, your condo can serve you very well as an asset that you can flip later on and enjoy a significant return on your initial investment.

Regardless of what your intentions are with your Eighty-Seven Park condo, it is important to take into consideration the following seven tips so that you get good value for your money and meet your financial goals with regard to the property you want to acquire.

Carry out your due diligence on the developer

Investigating the reputation of the developer of your condo is equally important when you’re planning to purchase a resale unit, but this due diligence is even more important if you’re planning on investing in anEighty Seven Park condo. When you’re investing in a pre-construction project, a large component of the risks that your investment faces are dependent on the reputation of the developer.

Find out if the developer’s projects face unreasonable delays and if they have any incomplete projects that were abandoned. It is very normal for delays to occur when developing complicated projects like Eighty Seven Park. What matters most is how the developer communicates and handles these delays.

Take some time to visit projects that the developer completed in the past 5 or more years and if those structures have stood the test of time. If these structures are still of good quality then it is a good commendation on the developer’s work.

Use the rescinding period to your advantage

Investing in a pre-construction project like Eighty Seven Park gives you the advantage of having a number of days as a grace period where you can rescind your decision to purchase the condo and still get a full rebate on your deposit without any penalty.

Within this period, the price you agreed on with the developer will be reserved including all agreed on incentives and your property cannot be sold to another buyer. You should use this duration to go through the fine print of your purchase agreement with your lawyer and ascertain that there are no gotchas that can come back to bite you later.

Work with an experienced realtor

The process of buying a condo is very different from that one of buying a resale unit. These transactions contain more clauses and conditions than your standard resale home purchase. Now, before committing to an agreement that might be detrimental to you financially, it is important that you work with the realtor who has proven experience in pre-construction transactions. Engaging the services of a lawyer with experience in pre-construction condos will help you to understand the fine print and even suggest amendments to clauses in the purchase agreement that are detrimental to you.

Expect and plan around construction delays

When investing in a pre-construction project, you should expect and plan around delays to the date of occupancy. The completion dates that the developer provides you are best-case-scenario approximations that can suffer from unexpected delays. Causes of such delays can include bad weather conditions, labor strikes, and even changes in municipal legislation.

A reasonable timeline to add that considers delays is around three to six months from the provided date of the completion.

The homeowners Association

Pre-construction condominiums like Eighty Seven Park share a lot of communal facilities that have to be managed and maintained communally. This management is carried out by the homeowners association that maintains shared facilities like the exterior structure of the condo, amenities, landscape and shared utilities. They will charge a regular fee to accommodate these services. The HOA will also have rules and regulations that all condo owners are expected to abide by. Before investing in a condo, make sure that you can live with the rules and regulations and the fees as stipulated by the HOA agreements.

Budget for closing costs

Just like in any real estate transaction, you will incur some closing costs before finalizing your deal to acquire a condo at Eighty Seven Park. Some of these fees include development fees and municipal levies that are charged by the municipal on the developer and which the developer will pass on to the new homeowner. These closing costs can add approximately 1.5 to 5 percent of your purchase price.

Take advantage of the interim occupancy if offered

The developer can offer interim occupancy, which is a situation where you are allowed to move into your Eighty-Seven Park before fully taking ownership. So you haven’t actually fully closed on your purchase transaction. This arrangement has the benefit that if you’re paying a mortgage to purchase your condo then instead of renting an apartment while waiting for the completion of the condo you can move into your condo at the monthly payments you make are towards ownership of your condo and not on rent.

The interim occupancy can last up to even six months during which owners will be moving progressively into the complex. The process of moving in is usually staggered to avoid the impracticality of everyone trying to move in on the same date.

Before taking advantage of the interim occupancy, make sure that you’re very clear on the interim occupancy fees and how they measure up against renting an apartment.

In summary, those have been some of our tips to consider before investing in a pre-construction condo.

PLEASE CAREFULLY READ THE FOLLOWING TERMS BEFORE USING THIS WEBSITE. Continued use of the website signifies your acceptance of, and agreement to be bound by, each and every one of the following terms and conditions: This project is being developed by 8701 Collins Development, LLC, a Delaware limited liability company (“Developer"), which has a limited right to use the trademarked names and logos of Terra and Bizzi & Partners Development. Any and all statements, disclosures and/or representations shall be deemed made by Developer and not by Terra and Bizzi Partners & Development and you agree to look solely to Developer (and not to Terra and Bizzi & Partners Development and/or each of their affiliates) with respect to any and all matters relating to the sales and marketing and/or development of the project. This website is provided by Developer for informational purposes and personal use only. Commercial use is strictly prohibited. Access to, and use of, this website is subject to compliance with these terms and all applicable laws. Developer may revise these terms at any time by updating this posting. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. This website is not intended to be an offer to sell, or solicitation to buy, a unit. In no event shall any solicitation, offer or sale be made in, or to residents of, any state or country in which such activity would be unlawful. NOTHING CONTAINED IN THIS WEBSITE IS INTENDED OR SHALL BE DEEMED TO BE AN OFFER TO SELL REAL ESTATE OR REAL ESTATE SECURITIES TO RESIDENTS OF THE STATE OF NEW YORK. IN FURTHERANCE OF THE FOREGOING, DEVELOPER HEREBY DISCLOSES THE FOLLOWING: (A) NEITHER DEVELOPER, NOR ITS PRINCIPAL(S) TAKING PART IN THE PUBLIC OFFERING OR SALE ARE INCORPORATED IN, LOCATED IN, OR RESIDENT IN THE STATE OF NEW YORK, (B) THE OFFERING IS NEITHER MADE IN THE STATE OF NEW YORK NOR MADE TO THE RESIDENTS OF THE STATE OF NEW YORK, (C) THE OFFERING IS NOT DIRECTED TO ANY PERSON OR ENTITY IN THE STATE OF NEW YORK BY, OR ON BEHALF OF, DEVELOPER OR ANYONE ACTING WITH DEVELOPER’S KNOWLEDGE; AND (D) NO OFFERING OR PURCHASE OR SALE OF THE SECURITY OR ANY UNIT SHALL TAKE PLACE AS A RESULT OF THIS OFFERING IN NEW YORK OR WITH A RESIDENT OF THE STATE OF NEW YORK, UNTIL ALL REGISTRATION AND FILING REQUIREMENTS UNDER THE MARTIN ACT AND THE NEW YORK ATTORNEY GENERAL’S REGULATIONS ARE COMPLIED WITH; A WRITTEN EXEMPTION IS OBTAINED PURSUANT TO AN APPLICATION IS GRANTED PURSUANT TO AND IN ACCORDANCE WITH COOPERATIVE POLICY STATEMENTS #1 OR #7; OR A “NO-ACTION” REQUEST IS GRANTED. No real estate broker or salesperson is authorized to make any representations or other statements regarding any Developer project, and no agreements with, deposits paid to or other arrangements made with any real estate broker are or shall be binding on the Developer. All images and designs depicted herein are artist’s conceptual renderings, which are based upon preliminary development plans, and are subject to change without notice. All such materials are not to scale and are shown solely for illustrative purposes. Renderings depict proposed views, which are not identical from each unit. No guarantees or representations whatsoever are made that existing or future views of the project and surrounding areas depicted by artist's conceptual renderings or otherwise described herein, will be provided or, if provided, will be as depicted or described herein. Any view from a unit of from other portions of the property may in the future be limited or eliminated by future development or forces of nature and the Developer in no manner guarantees the continuing existence of any view. Photographs contained on this website may be stock photography or have been taken off-site and are used to depict the spirit of the lifestyle to be achieved rather than any that may exist or that may be proposed, and are merely intended as illustration of the activities and concepts depicted therein. Interior photos shown may depict options and upgrades and are not representative of standard features and may not be available for all model types. All fixtures, furniture and items of finish and decoration of units described herein are for display only and may not to be included with the unit, unless expressly provided in the purchase agreement. All prices, plans, specifications, features, amenities and other descriptions depicted herein are based upon preliminary development plans, and are subject to change without notice. No guarantees or representations whatsoever are made that any plans, features, amenities or facilities will be provided or, if provided, will be of the same type, size, location or nature as depicted or described herein. The sketches, renderings, graphics materials, plans, specifications, terms, conditions and statements contained in this website are proposed only, and the Developer reserves the right to modify, revise or withdraw any or all of the same in its sole discretion and without prior notice. All improvements, designs and construction are subject to first obtaining the appropriate federal, state and local permits and approvals for same. These drawings and depictions are conceptual only and re for the convenience of reference. They should not be relied upon as representations, express or implied, of the final detail of the units. The Developer expressly reserves the right to make modifications, revisions and changes it deeded desirable in its sole and absolute discretion. Stated square footages and dimensions are measured to the exterior boundaries of the exterior walls and the centerline of interior demising walls and in fact vary from the square footage and dimensions that would be determined by using the description and definition of the “Unit” set forth in the Declaration (which generally only includes the interior airspace between the perimeter walls and excludes all interior structural components and other common elements). This method is generally used in sales materials and is provided to allow a prospective buyer to compare the Units with units in other condominium projects that utilize the same method. Measurements of rooms set forth on this floor plan are generally taken at the farthest points of each given room (as if the room were a perfect rectangle), without regard for any cutouts or variations. Accordingly, the area of the actual room will typically be smaller than the product obtained by multiplying the stated length and width. All dimensions are estimates which will vary with actual construction, and all floor plans, specifications and other development plans are subject to change and will not necessarily accurately reflect the final plans and specifications for the development. Prices do not include optional features or premiums for upgraded units. Price changes may occur that are not yet reflected on this website. Buyers should check with the sales center for the most current pricing. The project graphics, renderings and text provided herein are copyrighted works owned by the Developer. All rights reserved. Unauthorized reproduction, display or other dissemination of such materials is strictly prohibited and constitutes copyright infringement. Any dispute arising by virtue of access to or use of this website shall be governed by the laws of the State of Florida without giving effect to any rules of conflicts of law, and shall be subject to the exclusive jurisdiction of the courts of Miami Dade County, Florida, USA. Developer is not responsible for inaccuracies, typographical errors, omissions, product information or advertising contained within this website. Developer reserves the right, at its discretion, to change, modify, add or remove all, or portions of, the website, inclusive of the Disclaimers page, at any time. Continued use of this website indicates acceptance of such rules, changes or modifications. The failure of Terra to exercise or enforce any right or provision of the terms shall not constitute a waiver of such right or provision. If any provision of the terms is found to be invalid by a court of competent jurisdiction, the users of this website (by use) nevertheless agree that the other provisions of the terms shall remain in full force and effect. Any questions regarding these terms should be directed to: info@eightysevenpark.com.