Investing in real estate is not only an obvious and profitable way to make a profit, but also certain risks, which are 100% difficult to protect against. And yet there are a few basic rules, following which you can avoid most of the difficulties and problems.
So, if you decide to purchase a property for renting it out, then first of all you should analyze in advance the situation with the real estate market in this area, the area where you plan to buy it. Since there are areas where buying property is not profitable.
If you are convinced that buying housing in this area is promising and have already found a suitable object for purchase, the next step is to check the property and its owner for “cleanliness”, since real estate fraud is the most common.
The most risky today is investing in a new building. Therefore, carefully read the agreements with the developer and ask for the help of lawyers who can tell you about the nuances of a particular transaction.
Unfortunately, today contracts are drawn up in such a way that for the buyer (investor) there are no guarantees of the safety of investing funds in building. Since it is often stipulated in the contract that the terms for putting the house into operation can be transferred an unlimited number of times, and in this case no penalties or compensation are provided for. Therefore, the only thing the buyer can hope for in this case is directly in the name of the developer.
Therefore, the choice of the developer should be approached very carefully and with responsibility, haste in this matter can only harm.
First, check the reliability of the developer, in particular, whether he has a lot of experience in the real estate market, how many objects he put into operation, whether he rents his objects in time. This is especially true in today’s situation, when there are cases of cessation of construction of various objects in connection with the unstable financing of the developer, or the commissioning of an object completely unprepared for people to live in it.
Be sure to check the compliance of the existing project documentation of the developer and find out whether it is agreed with the relevant authorities, that is, whether this developer has a construction permit.
It is also useful to ask those who have already settled in the houses built by this developer, whether they stopped in time, on time, and if the residents are provided with all the promised and necessary conditions for living. It is also worth checking whether there were no complaints from apartment owners about a violation by the builder of safety regulations, sanitary, fire regulations, safety rules for the supply of electricity.
Since very often there are cases when the developer reports on the successfully handed over object, but in fact people have not even received the documents of ownership, or moreover, people were settled a year ago, and there is still no hot water in the house and light. Therefore, it is very useful to talk with people who have already collaborated with this developer.
Avoid also cooperation with those companies that artificially inflate real estate prices, since such investment will be extremely unprofitable. Therefore, before you buy a property, carefully analyze the situation on the market and learn about the average size of the value of objects.
And finally, do not invest money in too expensive real estate, because if you urgently need to release your funds, it will be problematic in a short time.