Frequently Asked Questions
Whether you are a retail investor or accredited, owning a rental property can be a lot to take in sometimes. Here is a list of questions that will help you understand your new condo opportunity and how the process works.
What does "Pre-Construction" mean?
Basically, a Pre-Construction Condo Property is one that you are buying before or while it is being built. You are buying your unit based off of the permitted plans, specifications and renderings of the building, and depending on where the building is during the construction process, possibly a partially built unit.
The development of a property has several stages, including planning and permitting, the construction and building process, and finally, the completion and move-in period. In a larger project like a high-rise condominium building, these stages are more specific given the scope of the project.
The four general stages of construction are:
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Planning Stage - The Planning Stage involves a lot of planning and budgeting work by the developer. This will include feasibility studies, and discussions with architects and engineers, land use attorneys and government to get a general idea that the desired size and scope of the project is possible for the budget and expected profit.
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Pre-construction Stage - Once a project has passed feasibility, the Pre-construction Stage begins with architectural planning and documentation, including the creation of construction documents. These documents will be used for securing building permits to begin construction.
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Construction Stage - Once permits have been approved for the construction of the building, construction can begin. This process can take one to two years for a condo building.
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Close-out Stage - Upon completion of a building, and all construction steps have been approved, the Close-Out Stage has begun. This is the stage that sales contracts are finalized and residents are able to start moving in to their new units.
Why Buy a Pre-Construction Mysk Condo?
There are several reasons why buyers want to purchase a Mysk condo property during the early development period, or pre-construction period.
Price - Everest Global and Everest Place offer early-bird pricing and certain incentives during the Pre-Construction period. This means you will likely get a better price for your Mysk Condo by purchasing it early. Essentially, you want to lock in a beautiful condo at lower prices so you can benefit from rising real estate prices, while not actually having to worry about maintaining the real estate while it is being built.
Pride - You love knowing that you are the first owner and no one has lived in the unit before.
Preference - You like being in charge of your own destiny, by having the first choice of exactly the floor plan you want and any other options only pre-construction can offer.
Can I resell my Mysk Condo?
Prior to closing, sale needs to be approved by the developer. Developer shall have first right of refusal. Listing & marketing of unit prior to closing is prohibited. Sale of unit(s) must be sold through everest global real estate (exclusive broker) or approved brokerage.
Can I buy a pre-construction Mysk Condo in the name of a company?
Yes, it is possible to buy a pre-construction Mysk condo in Florida in the name of a company. However, there are certain legal and financial implications that you should consider before making such a purchase. Firstly, you should consult with a real estate attorney who is familiar with Florida's laws and regulations regarding company ownership of real estate. They can advise you on the best type of company structure for your situation, as well as any tax implications. Additionally, you may need to provide certain documentation and meet specific requirements to purchase property in the name of a company, such as proof of the company's existence and financial standing. It's also important to note that financing a pre-construction condo purchase in the name of a company may be more challenging than if you were purchasing as an individual. Lenders may require a higher down payment or additional collateral to secure the loan. Overall, while it is possible to buy a pre-construction condo in Florida in the name of a company, it is important to consider all the legal and financial implications before making a decision.
What are the deposit requirements to secure an Everest Place pre-construction condotel?
Mysk Condo deposit requirements start at 30% of the purchase price. Depending on the phase, the requirement can be up to 40% of the purchase price. The closer you get to the completion of the project, the higher the costs will typically be. Not only the deposit but also the actual cost.
What are typical closing costs for a preconstruction or new construction unit?
Developers usually charge a 1-2% fee at closing to cover the sales taxes and other administrative and closing costs. In addition to that, you will be required to pay the first month of your association fees, plus the equivalent of two months of association fees into the reserve account of the condominium association for the purpose of a fund for future common area repairs and replacements.
What are estimated monthly property taxes & HOA fees?
Property Taxes: $800 HOA Fees: $600
Will my condo be ready to use once construction is over?
Your condos will be ready to enter the rental pool as soon as construction is completed. Someone will notify you on when you are able to use your new residence.
Can I see what the finished product will look like before I make my purchase?
Yes! You will certainly know your floor plan, unit location and the majority of the expected finishes of your unit prior to signing the purchase contract, and you will be given an opportunity to visually inspect the property prior to closing day.
How do I know what I am being shown is what is going to ultimately be delivered?
By going with a developer like Everest Group with a good track record and reputation you can be more certain that you will receive what you have been promised. Everest Global Real Estate llc, a trusted pre-construction real estate broker can guide you on the history of each developer, and you can factor that into your final decision on how Mysk is right for you. Since a pre-construction real estate broker does not work for any particular condo developer and only has incentive to find you the project that suits your needs best, they should be able offer the honest opinion on which projects will be more likely to deliver than others.
Why should I buy a pre-construction property when I can buy a ready-to-go condo?
Mysk Condo purchasers get to enjoy property value appreciation for not only the duration of the pre-construction but also afterwards. Your condo's value when you re-sell if you choose to, will net you more than if you just got it after construction.
Why do developers offer pre-construction sales?
Developers essentially make you, the pre-construction buyer, their construction, and financing partner in the project when they allow you to make a pre-construction purchase. In exchange for you splitting the risk with them on the project, they offer discounts off the expected market price at time of completion. The discount you receive mostly is based on the time you sign up for your unit. The sooner you get in on the project the bigger the discount you will receive, as the developer wants to create significant momentum at the initial sales launch, as they will be crucial to the viability of their project.
How much of my money does a developer use during construction?
By law the developer must hold 10% of the buyer’s purchase price in escrow for the entirety of the project.
What are the penalties if I decide to cancel my pre-construction contract?
During the reservation phase, the reservation agreements allow the buyer to cancel at any time for any reason. Once the buyer signs the actual purchase contract during the contract phase and receives the condominium documents, there is a 15 day rescission period governed by Florida law, that allows the buyer to back out for any reason. After those 15 days, the contract does not leave any wiggle room to cancel without penalty of losing the deposit as long as the developer abides by his written promises in regard to the property.
Is my investment safe?
As with any investment you have the risk of a project not going the way it was intended, however this seldom occurs and if you go with a reputable developer with deep pockets, you will significantly minimize your risks. If you work with an agent that is a pre-construction expert, he or she will guide you on the local and international reputations of the developers so that you can make an informed decision.
Do I get to inspect the new construction property before closing?
Yes, prior to closing you will be given the opportunity to complete a walkthrough inspection, during which your assigned agent and a developer representative will review the property carefully for any defects. They will be documented, and the developer will have a”reasonable” time to correct them, typically around 30-days after closing to address all the defects. In our experience, this typically is a smooth process as the reputable developers have dedicated customer service lines to ensure the checklist items are taken care of.
Is there a warranty on the finishes and appliances in my new construction condo unit?
Appliances have a warranty between 6 months and one year. Typically, developers will warranty their work for a reasonable period of time. I have seen them gracious enough to make repairs even many months after closing on a unit. This may vary from developer to developer, and developers are typically more gracious if they are still doing lots of closings and still have repair crews and open master permits on-site.