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The concept of the condominium was introduced into the real estate market back in 2002, but the real banner years for condominiums were in 2004 and 2005 where the condominium market registered its largest number of sold units. Pretty much the entire Miami-Dade County has been experiencing enormous development in the real estate market in every conceivable price range anyone can think of.

The Miami condominiums that were pre-sold in 2004 and 2005 were completed in 2006 and thus the increase in the number of available high end units either for sale or rent. Miami condominiums are sprouting up like mushrooms after the storm in every community from South Beach, Brickell Avenue to Dadeland, and from Downtown Miami to North Bay Village. Any place you can think of has lots of Miami condominiums available. If you're thinking of investing in Miami condominiums that are in the preconstruction phase, you will surely be offered hundreds of opportunities to own a future home at the present-time prices.

A great advantage of investing in Miami condominiums while they are in the preconstruction phase is that you'll be able to get a preconstruction opportunity without spending a big amount of money. Why, you may ask? Well the reservation cost for one of the Miami condominiums in the preconstruction phase is a relatively small amount which is typically about ten to twenty percent. Making such a minimal investment, you'll be able to enjoy the appreciation of your real estate over time but without carrying costs such as interest and taxes. However before you decide to invest it would be best for you to get a bird's eye view of certain development phases involved in the preconstruction of Miami condominiums. This will enable you to avoid getting bad deals and getting snared in the real estate business.

The first phase in buying Miami condominiums is the reservation stage wherein the developer offers the condo unit at the lowest price he possibly can. Usually the price would fall below the current market price. This will give the developer an opportunity to determine the demand for the project, and aids in the financial aspect encountered with their present lenders. The buyers are given the chance to reserve the Miami condominiums at the rate of at least five to ten percent or maximum twenty percent. This sum is, of course, fully refundable should the transaction not materialize, as such is stipulated in a “reservation agreement.” The next phase is the contract. After all of the required reservation agreements have been me, the “hard contracts” are made.

These documents will lay out all the legal and technical specifications of the condominium project. This is the time when you will be required by the developers to fully pay the ten percent of the contract price. This is followed by the construction phase, and once the construction of Miami condominiums commences, the buyer will have to pay another ten percent as the completion of the twenty percent deposit. The condo project may be completed within six to two years if the construction goes smoothly and no unnecessary delays are met. The final phase will be the “closing” when you'll be required to complete the payment of the balance of eighty percent plus any mortgage or cash payoff, closing costs and all related expenses in any Miami real estate transaction.