How to identify when the purchase price of a flat or a house is lower in order to recover before the investment
For an inexperienced investor, it may be difficult to recognize the most profitable stage of a real estate project. That is to say, identify when the purchase price of an apartment or house is lower so that the investment is recovered beforehand. If you are in the moment of investing, you first have to know the stages in which it is possible to acquire a property, since only in this way you will make the best decision.
Prevent a new home
You can obtain a property before it is built, that is, when the building permit is in process. This is the most profitable stage of a real estate project if long-term gains are taken into account. The price is very low compared to the one that the property will suppose once it is finished. Although the risk is higher, because you still do not have the official permits, you can only provide a small advance to reserve the unit and not be built, the amount is returned, which represents a bet with great prospects for savings.
Permits to build a house
It has not yet begun construction, but the project has the building permits and the precautionary period has concluded. Given the foregoing, you are already able to sign a sales promise, at this point you can also find prices well below the final value, especially if there is still no advertising.
In this phase, you have access to models, plans and images in digital, but there are no pilots or rooms for sale.
Promotion of flats under construction
For this point the building is already under construction and we are moving away from the most profitable stage of a real estate project. Although it is not impossible, it is difficult to find a seller who is willing to give up his share for the pre-sale price. What the experienced investors do is to track vendors with real estate under construction.
Real estate project completed
Without a doubt, it is the most difficult time to start a negotiation. Many buyers fall into the mistake of acquiring finished real estate, without taking into account that in this state it is when they reach their maximum value, so the return on the investment will be considerably lower than in the previous stages.
Now you know that the acquisition stage is one of the factors that affect the profitability of a property. Did you find it interesting?