Is it worth it to buy apartments during the construction phase? And how to make real estate investments profitable? Let’s consider in detail.
When the decision to buy is made, the question arises, what kind of property to buy – under construction or already built. To begin with, it is worth understanding what the stages of construction are. The whole process of building a building is conditionally divided into three stages:
First stage
It is also called the excavation stage. During this period, the foundation is laid and the first floors are built. Buying an apartment in a new building at the start of sales is the most profitable option. If you want to buy real estate at the maximum attractive price, then you should buy it at this very moment. In this case, you will save almost 70%.
Second stage
This is the middle of construction. Repair work is already going on in full force, the building is growing, taking shape, most of the partitions and floors have been erected. Already during this period, work begins on the improvement of their own infrastructure – a parking lot is being built, an area is allocated for playgrounds and squares, if this is planned by the project. At the second stage, the cost per square meter is higher than at the first, but still lower than the final cost of finished housing. Buying real estate during this period is also profitable – you can save about a third.
Third stage
Construction work is completed, the building is put into operation. The cost per square meter at the third stage rises and approaches the market. Of the three stages, this is the most expensive. However, you are buying ready-made housing.
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All three stages have their advantages. To decide when exactly to buy an apartment, you must first decide what the house is purchased for – for living or for earning. If you have a place to live, and you are thinking about where to invest your savings so that they work, then you should ask yourself the second question. How exactly is it expected to generate income – through resale or through rental? In the first case, it is more profitable to buy at the stage of excavation and resell upon completion of construction, in the second – to invest in a finished apartment and start renting it out as soon as possible so that it starts to make a profit. Whatever it is, stick to two basic principles, and you will always win. Both are based on the golden rule of economics: time is money.
Principle #1
At the beginning of construction, real estate is cheaper, at the end it is more expensive. At the same time, when buying apartments at the construction stage, it will be necessary to wait until the construction is completed (on average, it lasts from 1 to 3 years). But there is also good news. Apartments in hotel and residential complexes, villas and townhouses by the sea, which are sold by Sea Inside, have an interest-free installment plan until the completion of construction.
Principle #2
By buying a house or apartment at the last stage (and even more so in a turnkey condition, when the property is completely ready for occupancy), you will save time – you can immediately move in or start renting out. However, keep in mind: such an apartment will cost more.
Bonus – another tip
You can avoid risks if you buy real estate from trusted agencies. We, the Association of Developers of Georgia, cooperate only with reliable companies. In the following articles, we will tell you how to compare prices and what time of the year is best to buy a new building.
