Real estate may be all about location, location, location, but real estate investment is also about timing, timing, timing. Like the stock market, when you make your investment is just as important as the investment you choose. And, when it comes to real estate, a pre-construction investment can maximize your return.

The primary pre-construction investment advantage is that you can generally purchase a property at a lower price than if you were to wait until after the project breaks ground. Once construction is underway, popular locations and properties can trigger an influx of new investors who drive prices up. A pre-construction investment also allows you to choose among premium properties, whereas later investors can choose only from among the less desirable properties.

What to Buy in Today's Climate

While the asking prices of single family dwellings are trending downward, there is still enough uncertainty in the market to cause concern. Lately, the attention of investors has turned to what are called condo hotels. These properties generally have both condominiums and luxury suites, and the communities typically have a number of attractive features, such as retail space, restaurants, and pools. Often, investors will buy a condo hotel unit and use it part of the year as a luxury vacation accommodation, while renting the property out for the rest of the year. The best condo hotels take care of the rental management and maintenance, leaving the investor to enjoy his or her property while reaping the financial rewards.

Where to Buy

Real estate is all about location, so when considering a pre-construction investment, it's important to find a place where there is high demand for short-term housing. In the United States, Orlando, Florida, is one of the best places to invest. Analysts estimate that the real estate market in Orlando is undervalued by as much as 30 percent. And, with the tens of millions of tourists the area draws each year, thanks to Disney World, Sea World, and Universal Studios, the hotel occupancy rate hovers at around 80 percent.

With these kinds of numbers, Orlando is the perfect place for a pre-construction investment. As an example of what's available, the Blue Rose is a condo hotel scheduled to break ground in late 2007 and scheduled for completion in 2009. The Blue Rose Resort is planning to offer over 250 condominiums along with over 1,200 condo hotel suites of up to 3,000 square feet. To complement the accommodations, the Blue Rose is planning to build the Swan Lake Promenade, which will house five themed restaurants, European cafes, private pool cabanas, and a Broadway-style theater that seats 1,000.

Pre-construction investments in top-rated short-term rental markets have a great potential return on investment. Plus, due to the desirable destination, savvy investors will be able to enjoy both appreciation of property values and great vacation accommodations.