Entry Post

Housing Under Construction

Commenting is disabled.

Post Content

Has the return of barter schemes affected construction companies? Offering flat as the calculation of contractors, the cost of the developer does not lose. However, the transition to natural relations decision, rather temporary than permanent, because, in the final After all, it makes its own sales. Discounts on apartments provided today by contractors, lead to the destruction of the mechanism of return of investment in housing under construction. “The sooner invest – the more get – This stable system failed. By the same author: Dell. We are accustomed to the fact that any investment in real estate has always been profitable. Here, Tishman Speyer expresses very clear opinions on the subject. For investors between buying at the stage of excavation and sale of the finished object loomed significant delta.

Ros secondary market rose in price and market buildings. Formed a kind of stereotypes that the fall it is impossible a priori, that prices should rise. So today, even in difficult financial circumstances, construction companies can not afford to openly pursue dumping policy, veiling price reduction under the various stock, discounts and bonuses. Developers in this matter is very large fashion component. Therefore, of course, the conditions of competition with the proposals of contractors unequal. Construction companies are willing to wait out unfavorable days, carrying out systematic sale of remaining in the presence of prefabricated houses and objects in final stages of construction. Build the same with a minimum share of risky returns: unforeseen expenses that are impossible to calculate the initial stage of the project (the cost of communications, social issues, the conditions supervisory authorities) reduce to zero the already low profitability, ultimately dooming the enterprise to the loss. In listing publications large scatter of proposals for similar facilities.

Price often differs significantly. As define the boundary between the “interesting proposal” and “protracted”? Risks of investing in housing under construction were always present. With the adoption of FL-214 have been some improvements, but no longer apply alternative ways of raising funds: preliminary agreements, promissory notes and loan schemes. Increased risk to acquire a frozen construction site. Today it is not filled with the same barter obligations could result in serious trouble for the investor. Yet it is worth investing today or wait? What is your forecast? Clearly that for today, while favorable to the investor, the situation followed by a shortage of new housing in the future. Enter into operation by 2010 there will be nothing. Builders to temporarily postpone the construction of new facilities.

Comments

Commenting is disabled.

There are no comments.