Miami luxury preconstruction towers collect roughly 30 to 50 percent of the price in deposits before closing, according to MillionLuxury, and a newly announced tower like Breitling's B Residences will not deliver until 2031. The number my buyers underweight is not the price, it is how long that six-figure deposit sits idle. Run the carrying-cost math before you fall for the entry pricing.
The news peg this month is Breitling, the Swiss watchmaker, jumping into Miami's branded-residence race with a 70-story tower in Brickell called B Residences. According to CoStar, Partners Group plans to invest 220 million dollars in more than 300 units, with construction starting in 2028 and completion projected for 2031. That is a brilliant marketing story. It is also a five-year wait, and that timeline is what most buyers do not price correctly. My Miami pre-construction buyer's guide covers the full process; this post zeroes in on the money math of a long delivery.
When you buy a tower this early, you are not just buying a condo. You are handing a developer a six-figure deposit and waiting years to see a finished unit. The excitement is the brand, the renderings, and the entry pricing. The cost is the capital you lock up and the risk you carry until keys. In this post I break down what deposits actually run on Miami preconstruction, how the delivery clock changes the calculation, and the carrying-cost question I make every buyer answer before they sign. It ties directly to how I read the step-by-step buying process.
What Deposits Actually Run on Miami Preconstruction
Start with the number that surprises first-time preconstruction buyers. Unlike a resale purchase, where you might put down 20 percent and finance the rest, Miami luxury preconstruction asks for far more up front, and in stages. According to MillionLuxury, most luxury towers collect roughly 30 to 50 percent of the purchase price in deposits before you ever close. That capital goes to the developer to help fund construction, and you do not get a mortgage or keys until the building is finished.
The ladder usually looks like this: a reservation payment holds your line, then 10 to 20 percent is due at contract, followed by additional 10 percent installments at milestones like groundbreaking and top-off. On a 2 million dollar unit at 40 percent, that is 800,000 dollars committed before closing. My advice on preconstruction is simple: know the full deposit schedule and the delivery date on day one, because those two numbers together decide how long your money is working for the developer instead of for you.
| Deposit Stage | Typical Amount | When It Is Due |
|---|---|---|
| Reservation | Small holding fee | To hold your unit line |
| Contract signing | 10-20% | At binding contract |
| Groundbreaking | ~10% | Construction start |
| Top-off | ~10% | Structure complete |
"Buyers ask me about the price and the finishes. The question I make them answer first is how many years their deposit is locked up before they get a key, because that is the cost nobody prints in the brochure."Gerardo Gonzalez, Licensed Real Estate Agent at Compass
How the Delivery Clock Changes the Math
Two towers can ask for the same deposit and be completely different bets, because of when they deliver. A project already under construction might hand you keys in a year or two. A newly announced tower like B Residences is not projected to complete until 2031, which is roughly five years from its July 2026 announcement, per CoStar. Same deposit percentage, radically different length of time your money is committed and exposed to construction risk.
That length is the variable buyers underweight. When I map a preconstruction purchase for a client, I draw the timeline first: reservation, contract, groundbreaking, top-off, closing. Then I mark how much cash is due at each point and how many years pass before the last one. A tower delivering in 2027 and a tower delivering in 2031 are not the same product even at identical prices, because the 2031 tower ties up your capital and your decision for four extra years. My true cost of owning a Miami luxury condo breakdown extends that thinking past closing into the carrying costs of ownership.
The longer clock is not automatically bad. Buying the earliest, at the lowest price tier, with first pick of lines and views, is a real advantage, and it is why serious buyers chase brand-new launches. The point is to price the wait honestly. If you are getting a genuine discount to the expected 2031 value and the developer has a track record of delivering, a long horizon can be worth it. If you are paying near-final pricing today to wait five years, the math is much weaker.
The Carrying Cost Nobody Prints in the Brochure
Here is the calculation I make every long-horizon buyer run. A deposit that sits with a developer is capital doing nothing for you. Take that 800,000 dollars on a 2 million dollar unit. Left in a conservative interest-bearing account or a diversified portfolio over the years until closing, that money would compound. When it is locked in a preconstruction deposit instead, the return you give up is the true carrying cost of the wait, on top of the price you are paying.
This is opportunity cost, and it is invisible because no line item shows it. The brochure shows the purchase price and the payment schedule. It does not show what your deposit could have earned elsewhere over five years, or the risk that construction slips and the wait stretches longer. Florida law does give buyers some protection: under the state condominium statute, the first deposit up to 10 percent must be held in escrow, and I always read exactly how the rest of the deposit is handled before a client signs.
So I frame the decision as a comparison, not a leap of faith. On one side is the expected value of the finished unit at delivery, plus any entry-pricing discount you captured by buying early. On the other side is your deposit's foregone return over the wait, plus construction and market risk. When the first side clearly beats the second, buying early makes sense. When it does not, a nearer-delivery building or a resale unit often wins. My framework for evaluating a building's financial health covers the diligence that protects the value you are betting on.
What I Check on a Long-Delivery Contract
A five-year horizon puts more weight on the contract and the developer than on the finishes. There is no resale history to lean on, so the paperwork and the track record are your protection. Here is the checklist I run before I let a client sign on a tower that delivers years out.
- The full deposit schedule. I want every installment, every amount, and every trigger date in writing, so the client knows exactly how much capital is committed at each stage and for how long before closing.
- Escrow and deposit handling. Florida requires the first 10 percent in escrow. Beyond that, terms vary. I read whether later deposits are held or spent on construction, and what happens to them if the project stalls.
- The developer's track record. On a long delivery, the single biggest risk is that the tower does not get built on time or at all. I look at what the developer has actually delivered before, not just the renderings.
- Delay and cancellation language. I check the outside completion date, what the buyer's remedies are if the developer misses it, and under what conditions a deposit is refundable versus forfeited.
Run that checklist and the exciting launch turns into a clear-eyed decision. The brand and the renderings tell you why you want it. The deposit schedule, the escrow terms, and the developer's history tell you whether the years of committed capital are a smart bet or a hopeful one.
How I Frame the Decision for Buyers
Here is the guidance I give clients weighing a long-delivery preconstruction tower, depending on where they sit.
If you are chasing a marquee branded launch: The entry pricing and first pick of lines are real advantages, and a proven developer earns some trust on a long timeline. Just size the deposit against your other capital honestly, and make sure the discount to expected 2031 value is worth five years of committed money. Do not let the brand story skip the carrying-cost math.
If this is your first preconstruction purchase: A nearer delivery is usually the safer classroom. Buying a tower that hands you keys in one to two years shortens your exposure to construction risk and your capital commitment, and it lets you learn the process before you tie money up for half a decade. The step-by-step pre-construction buying process covers what to verify at each deposit stage.
If you are an investor: Run the deal as a return on locked capital, not just a price. Your deposit's foregone return, the projected appreciation, and the developer's delivery odds are the three inputs. The SB 4-D and special assessments guide also matters, because a new building's reserve and assessment structure shapes your carrying costs after you finally close.
None of this is a warning off preconstruction. Buying early is how many of my clients get into the best towers at the best pricing. It is a read of the one number the excitement hides: how long your money is working for the developer before it works for you. Call me at (305) 964-8614 and I will map the deposit schedule and delivery timeline on any tower you are weighing.
Frequently Asked Questions About Preconstruction Deposits
How much deposit do you pay on Miami preconstruction condos?
Most Miami luxury preconstruction towers collect roughly 30 to 50 percent of the purchase price in staged deposits before closing, according to MillionLuxury. A typical ladder runs about 10 to 20 percent at contract, then 10 percent installments at groundbreaking and top-off. On a project like Breitling's B Residences, which does not deliver until 2031, that large sum sits with the developer for years before you get keys.
How long until a Miami preconstruction condo is delivered?
It varies widely by how early you buy. A tower already under construction may deliver in one to two years, but a newly announced project can be five years or more out. Breitling's B Residences in Brickell, announced in July 2026, is not expected to break ground until 2028 with completion projected for 2031, per CoStar. The earlier you buy, the longer your deposit is committed.
What is the carrying cost of a preconstruction deposit?
The real cost is what your deposit could have earned elsewhere. A 40 percent deposit on a 2 million dollar unit is 800,000 dollars tied up until closing. At even a conservative return, that capital sitting idle for five years is a meaningful opportunity cost, on top of any price appreciation you are betting on. I walk buyers through this trade-off so the brand or scarcity premium is a decision, not an afterthought.
Do preconstruction deposits stay in escrow?
Under Florida's condominium statute, the first deposit up to 10 percent of the price must be held in escrow, and buyers can sometimes negotiate that funds beyond that are held rather than spent on construction. Interest treatment depends on the contract. This is exactly why I read the deposit and escrow language on every preconstruction contract before a client signs, since terms differ meaningfully between developers.
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