Many of the condominium developments under construction in Panama City Beach offer space for sale prior to construction is complete on the building, thus called Pre-Construction Condominiums. Often times, when you purchase a pre-constructed condo, the initial price is less than purchasing a condo at a site that is already occupied.
Why Buy Pre-Construction Condos?
One of the most attractive aspects of purchasing a pre-construction unit is the price. Developers will offer units at an incredible savings compared to the finished project. This is due primarily because the development itself has yet to be constructed. Once construction has begun on a project, a developer will often raise the price for pre-construction units as the development progresses. So, the sooner you move on a unit, the more money you will save.
Since the initial purchase price is less than a completed condominium, pre-construction units are generally a sound investment. Increases in condominium prices as the completion date draws near can be seen as profit from your investment. Investors and speculators will often buy pre-construction units, then 'flip' ownership once construction is completed to a new owner, more often than not, receiving significant monetary gains. It is important VERY IMPORTANT to know where in the ownership chain you are. If you are buying on the 3rd or 4th flip you could find yourself at or above current market rates. This is why it is very important to find an agent or firm that can give you sound research into the market temperature!!!
Things to Consider
When looking at purchasing a pre-construction condominium as an investment, you should consider some of the following points.
Has the developer finished other projects? If so, check the quality of the finished project to ensure you feel confident that the builder will construct a condominium that will withstand the tests of time.
What amenities will the finished development offer residents? Will there be a pool, activity room, or exercise facility? What about parking?
Are you prepared to purchase the unit once construction is complete.
Covenants and Restrictions
So you have considered the options and have decided that a pre-construction unit is what you want to purchase, now what?
Prepare to place your deposit in escrow with the developer
Provide a letter of credit from your financial institution for the purchase price of the unit to show the developer that you can afford to purchase the unit once construction is complete.
Once construction nears completion, be prepared to sign a hard contract for the purchase of the unit.
When the unit is complete, close on the condominium and take ownership.
Shop for Pre-Construction Condominiums
Below you will find a few selected pre-construction developments along the beaches in Panama City Beach, Florida. If you would like to inquire about any of the pre-construction developments, simply fill out the contact form and we will provide the information you request.