Buying pre-construction condos in Miami or new homes in Orlando has become one of the most attractive investments for global buyers. New developments in Florida offer unique benefits and features rarely seen in other real estate markets.
In most cases, the advantages of purchasing a brand-new property far outweigh those of buying a resale home, even if resale properties may initially appear more affordable.
In this article, we will detail the main advantages and explain how the process of buying a pre-construction condo or home in Florida works.
1 – Take Advantage of Early Pricing (Pre-Construction Pricing)
One of the most obvious benefits of buying pre-construction is the promotional launch pricing.
At this early stage, developers seek to raise funds to kick-start the project and often offer attractive discounts to early buyers.
In Miami and Orlando, this pricing strategy is very transparent, with price lists updated through different phases.
The first price list corresponds to Phase 1. As units are sold, prices are adjusted upward to Phase 2, and so on.
Thus, those who purchase during Phase 1 already experience tangible appreciation simply through price adjustments made by the developer, in addition to overall market appreciation.
If you would like to receive a list of the newest projects currently in Phase 1 in Miami and Orlando, click here and have the opportunities delivered directly to your inbox.
2 – Attractive Payment Terms
Flexible payment structures are another important advantage, allowing buyers to pay gradually throughout the construction period.
Typically, it takes about three years from the launch of a development to the delivery of units.
During construction, developers usually require only 30% of the total purchase price, which can be paid in installments. Often, just a 10% deposit is needed to reserve a unit.
Upon delivery, the remaining 70% can often be financed through American banks, with low interest rates and repayment terms of up to 30 years.
Here is a typical payment structure for buying a pre-construction condo in Miami or Orlando:
- 10% to reserve the unit
- 10% at contract signing
- 10% at ground breaking
- 70% at closing
The biggest advantage of this structure is that the buyer locks in the purchase price at Phase 1 values, securing future appreciation.
Miami’s real estate market appreciates at an average rate of about 10% per year. Pre-construction projects tend to appreciate even more, considering their launch prices are often below current market value. See more Florida housing statistics here
3 – Brand-New Property with Updated Finishes (Avoid Renovations)
Newly built properties in Miami offer state-of-the-art finishes, including high-end appliances (brands like Bosch, Miele, and SubZero), premium flooring, and modern cabinetry.
This allows owners to move in or rent out immediately without having to undertake expensive or disruptive renovations.
Additionally, being the first occupant, buyers avoid the risks of hidden structural issues or poorly executed repairs that can sometimes surface with resale properties — even with inspections.
4 – No Property Taxes or HOA Fees During Construction
Another important advantage is that buyers of pre-construction units are not responsible for paying property taxes or homeowners association (HOA) fees during the construction period.
This significantly boosts the return on investment compared to resale properties, where expenses start immediately after closing.
Meanwhile, buyers still benefit from the property’s appreciation throughout the construction phase.
5 – Real Estate Leverage
An often-overlooked benefit of buying pre-construction is the leverage effect.
The property appreciates based on its full market value, even though the buyer initially invests only a fraction (typically 10%).
By leveraging future value with a small upfront payment, investors maximize their return on investment.
This strategy becomes even more powerful when buyers choose to finance the remaining 70% at closing, taking full advantage of real estate leverage in Florida.
6 – Developer Warranty and Compliance with the Latest Building Codes
Newly constructed properties come with warranties from the developer, offering buyers peace of mind.
Like any new product, everything in a brand-new home — from appliances to major systems — is covered, unlike resale properties where warranties may have expired.
Additionally, new developments are already compliant with Florida’s latest building codes and regulations, reducing the risk of costly mandatory renovations required to bring older buildings up to code — a common cause of rising HOA fees in older condominiums.
7 – Energy Efficiency (Savings)
Older properties often use outdated materials and systems that are less energy-efficient, resulting in higher utility costs.
Replacing outdated equipment can be expensive.
New construction properties in Miami are built with modern materials and updated energy-efficient technology, helping owners save significantly on maintenance and utility bills over time.
Important Considerations When Buying Pre-Construction in Florida
Purchasing a pre-construction property without the guidance of an experienced real estate agent can quickly become overwhelming.
Some buyers believe they can negotiate better deals by dealing directly with developers — this is not true!
In fact, experienced agents often secure better terms and incentives for buyers through their relationships with developers.
After over 20 years working in Miami and Orlando real estate, with strong expertise in pre-construction and new developments, I can confidently say: trying to go it alone can be a costly mistake.
Learn about the 5 key benefits of hiring an experienced real estate agent when buying a pre-construction property in Florida.
Interested in Buying a Pre-Construction Condo in Miami or Orlando?
CAP International is a global real estate firm specializing in Florida’s hottest markets. Whether you’re looking for a new condo in Miami Beach, a second home in Orlando, or an income-producing investment property, we are here to help.
Contact us today via WhatsApp at +351 91 252 9601and discover the best new opportunities in Florida — starting with Phase 1 launch prices.