In a time of economic uncertainty, many rightly consider buying real estate one of the safest ways to preserve capital and even increase it. I'll tell you about some facts that you should pay attention to if you decide to invest in housing under construction in 2021.
Sooner means riskier
Any investment is associated with risk, the higher the return, the higher the risk. This rule is also true in the real estate market.
Buying an apartment in a new building at the start-up stage is profitable, but at the same time more risky from the point of view of the successful completion of the object. Despite the additional protection of buyers in many countries, for the investor a risk will also be considered a delay in delivery, suspension of work, refunds upon termination of the contract.
If you are not ready to take a lot of risk, we advise you to look closely at residential complexes at the stage of communications, when all monolithic works are completed.
The choice of the developer
When choosing a developer in whose project you intend to invest, take into account not only the current state of affairs of the company, but also a possible margin of safety. I can say with confidence that the financial crisis of 2020, in any case, will affect all market players, and it is possible that for some it will be a critical moment.
Comfort class is safer
According to experts, the most predictable is the middle price segment of the real estate market. Choose apartments in new comfort-class buildings, but do not forget that the classification by type of housing is conditional and can be somewhat overestimated for marketing purposes.
Renting out an apartment
Another option for generating income from real estate is renting out an apartment. The disadvantage of such an investment is a long payback period. Thus, this approach is more likely to help preserve capital than increase it.
Note that the average payback period under current conditions is 15-18 years. Choose an apartment in a developed area, close to public transport and metro stops, as well as educational institutions - taking these parameters into account, there will always be demand from tenants.
Commercial real estate
Despite some downturn in business activity, commercial real estate is considered more attractive in terms of investment than housing. According to experts, the average payback period is 7-10 years, but a lot depends on the choice of premises.
Ideal in this case is the option when you already have tenants willing to take the purchased meters for a long time.
Thank you for your attention!!!
Peace in your home.
Niki