Many have heard about investing in new buildings and yet few make such investments. This situation is quite risky, but this risk is justified because the profit can be obtained from the rental of housing, and the resale of real estate.
The average rental income is between five and seven percent per annum. This income can be called small. However, if you do not invest money, then over time they may depreciate due to inflation. This will not happen if you invest in new buildings.
Pros and cons of investing in new buildings
The main advantages of such investments:
the new building provides for new apartments, which means there will be no complications with property rights or other disputes with the owners;
the period of operation of the new house is much higher than that of the old one;
new buildings are located in areas where there is already transport and infrastructure.
most apartments require major repairs from scratch, which involves significant costs;
a large sum is expected to be invested;
legal risks are associated with unscrupulous developers who violate the laws of Ukraine in the construction of multi-story buildings.
It is impossible to completely remove the risk, but you can minimize it. To do this, just choose the right property and find a reliable developer.
Usually, everything depends on the real estate company, so finding the right one is the main task of the investor. When choosing, you should focus on:
1. Construction history. The more objects handed over, the better. It is recommended to learn the features of the previous property. For example, if a company was engaged in the construction of office buildings, and now changed the vector to residential buildings, then cooperation with this company will be associated with risk.
2. Feedback in media and social networks. You should also learn about previous projects. Were they delivered on time? Are there any complaints?
Once the construction company is selected, you can search for the object of investment:
First, you should visit the place where the construction is planned. This is needed to find out the distance to public transport stops and the distance from social institutions.
Then it is necessary to get acquainted with the plan of development of the area. If you plan to build a noisy or harmful enterprise nearby, it is better to invest in another object.
Investing in a new building on the one hand is a risky business in some countries, and on the other hand, it can become a permanent profitable business. Such investments are not recommended for investors who have little experience in real estate transactions.