That depends on many things.  In California, most condo projects end up in litigation.  When that happens it is hard to sell.  The upside is that the prices tend to go up as each new phase is released.  Many things must be considered in this purchase.  

$10000 without interest for maybe two years - to build in a year seems ambitious. A buyer might be able to secure the best view unit; but no deal. The developer knows which units have premium views and they will manipulate who gets those. Is it high rise? Might be some value in flying a drone to see what the proposed view might be... deal probably no

There are usually bonuses but you never know if it will be worthwhile if they miss the completion date. You'll normally get the lowest price after like phase 1. I don't like the idea they've got 10K. What if you don't want to put that much down? 3% in my area is totally doable.

 Who is holding that $10K?  Use a real estate attorney to draft the paperwork.

completion 2021? be early in that mix.... secure a price and just wait.... you could sell the p/s and make money....in this market, new home prices can easily jump.... there's no inventory!!  I had a condo complex and raised the prices $10k after I had a deposit on each one...that first buyer had $100k in equity very fast!!!! the builder let me make the decisions and I ran with it....he built as fast as he could to close them!!!  LOL that was fun.

Here on the coastal side of the Tampa region, pre-construction condo's are often sold three times before completion. Each delivering piece of the pie to the owner.

I'd tell any clients that they need a legal advisor to look things over Peter Mohylsky, Beach Expert 

Absolutely profitable providing the developer is reputable. You get location choice, pricing, boasting rights and the chance to watch your casa built!

Peter,

I don't think there are deals available. And $10,000 is way too much.  A

Sometimes. Many builders offer pre-construction deals to get projects kick started.

If I were 100% sure that I'd get the money back if I decided against buying it there would be no problem or concern.  It's like buying a lease option in which the buyer gets the home at today's price and if the price rises they buy but cancel if it drops.  Except there is no loss except interest.

Your need to have a lot of confidence in the developer.

I have one that just put $11K down on a new place as well and sadly, because of our low inventory, they are left to buy new construction, even when they would prefer a resale. 

While buyers are doing this all over the map, I can't help but be reminded of those who lost in a BIG way with new construction in the 2008 recession.