It is popular in the real estate market to buy apartments at the stage of construction. It is known that the cost of housing at this stage and the stage of commissioning – is much different. However, on the one hand, Ukrainians have learned from bitter experience, and are in no hurry to invest in the still “air”. On the other hand, many have a positive experience or are simply not ready to give up a huge sum at one moment.
In any case, it is worth understanding what benefits and losses may entail such a risky investment.
Indeed, prices at different stages of development vary. The lowest prices can be caught at a time when the house is still “on paper. Then the price starts to rise gradually, and the jump happens when the house is 40-50% built. At the time of commissioning, the price increases by an average of 20-30%.
Variety in the choice of apartments
At the first stages of the construction you have the opportunity to choose not only from what is available but also take into account your wishes and requirements. The best layouts and views come first.
The benefits of resale
If you consider buying a home – as a business project, it’s quite a profitable way to make money. If, of course, the house is successfully commissioned. Passive income, which at all times does not lose relevance.
These are the benefits that lie on the surface. The risks are no less obvious, but here it is extremely difficult to predict or check all the nuances.
Loss of Money
Everyone has heard about the story of that great uncle, who bought an apartment at the stage of construction, and it’s been 10 years suing the developer? Yes, unfortunately, this is not an isolated case. A huge number of people in Kyiv and all over Ukraine became hostages of the situation and lost their money. However, an even greater number of people are happy owners of new houses.
Concealment of the flaws
When buying a home in the early stages of construction is very carefully read all the related documentation: construction license, the rights of allocation of land, contracts with public utilities, and other things.
Postponing of housing delivery or refusal to finish the construction
A rather common problem for many investors. In one case, a new building was originally designed as a sham, in another, the documentation was not completed in its entirety, and in the third, the problem was caused by the bankruptcy of the developer or another financial crisis. In such a situation, it is difficult to influence the course of events. And the only thing left is to wait for the object to be commissioned. If the prospects are dim, it is worth considering taking the matter to court.
There are a million options – it is almost impossible to predict how the fate of the next new building will pan out. All that remains is to carefully select the builder and hope that everything will turn out in your favor.