What Miami Pre-construction Condos Should You Avoid?

The New Miami Condos to Stay Away From!

In this blog we will discuss the fundamentals of what to look out for when buying a Miami pre-construction condo. It will become apparent what type of condo to stay away from. For those who expect some name-dropping; no we won’t mention the condos in question. If you want to get into it and hear my unfiltered opinion, please give me a call at 305.508.0899 and I will let you know which condos I would avoid and why.

The Fundamental Reasons Why You Should Avoid Some of the Pre-Construction Condos in Miami.

A Developer’s Poor Track Record

Always look at the track record of the developer to see what they have produced in the past. Then use our condo analytics tool “Condo Geeks” to see how that condo performed in the years after it was delivered. Did prices go up or did the project’s resale prices saw a sharp decrease? Please note that there have been condos that after they were delivered, resale prices have never reached the levels at which they originally sold, which is an alarming signal. Other important questions are: “How was the project delivered?“, “Were the floor plans any good?”, “Were the finishes as promised?”, “Was the project well built?”,  “Did they misrepresent views in the renderings?” Misleading renderings can be quite convincing. We often see neighboring buildings being erased so it looks the views are more open than they really are, neighborhoods are said to be the “next hotspot” and finishes are exaggerated. Please be aware that the renderings you are shown are often the renderings of a fully finished unit in the best line. The upgrades you see in those renderings are often NOT included in the purchase price and will come with a hefty price tag.

Not the easiest homework for someone who is not in the industry, but please call me at 305.508.0899 and I will gladly go into further detail. I know the good projects from the bad ones and I speak to unhappy buyers (those who read my articles just a little too late) all too often so I do know what I’m talking about.

High-Density Condos

Something I repeat a lot, but please avoid high-density projects. High-density projects are mass produced and tend to target investors and renters. Imagine building 500+ units at hyper speed. Many of these units are sold like luxury units and in reality they are not. Specially in today’s world when raw material and labor costs are pricier tan ever, corners will have to be cut.

Investor-Driven Condos

Many sales centers use the slogan “excellent investment property”. We advice our investors to buy into buildings that are used as a primary residence. Why? Cause they are far more economically stable and tend to appreciate more over time. One of the reasons is that condos developed for primary users will offer better floor plans and are better finished. Besides this, primary users do not sell a unit at the first signs of economic struggle. I have written numerous articles on the essence of investing in primary residences and what makes an investment economically robust. Please find some of the links below.

Highly Priced Units without Justification

In today’s hot market, pre-construction condos are asking prices previously unheard of. While many new condos are located on a prime lot, offer the best of finishes and well considered floor plans there are a few that are just profiting from Miami’s hot market. When a developer asks you for more than $1,000 per SF, they need to make sure the project is worth it and will keep that value. Asking for a premium without any justification does not make any sense. Yes the market is hot and demand exceeds supply, but you do not want to pay top dollar for a unit that cannot be sold in case the market shifts.

The same logic applies for branded condos. Many Miami condos comes with a fancy brand name that have nothing to do with the hospitality industry. Please make sure these projects can stand on their own with good architecture, floor plans and finishes.