The real estate market - how not to get to frauds?
Anna Laevskaya, commercial director of "Intergal-Bud" company, has talked on on air of TV-channel 8 about the trends at the construction market, demand, supply, prices and quality, and how to choose a reliable developer.
Ukraine began to build more. In January, the company completed works on 6.5 billion UAH. The index of construction products, compared with the same period last year, was 106%. Such data lead to the Ministry of Regional Development. However, more often build a mall, than housing. And in the future this may turn into a rise in price of square meters. Here are the key quotes from the conversation of the commercial director of the construction company "Intergal-Bud".
"At the moment, there are indeed certain prerequisites for the growth of prices in the real estate market. Firstly, with the adoption of new state building standards, the amount of housing that is being built will slightly decrease. The number of transactions in the real estate market, as well as a substantial increase in cost, which, for example, in 2018, was 35–40%. This is due to a shortage of workers, because there was a substantial outflow of workers who left send to construction sites abroad. Also at the same time a lot of objects in Kyiv City in the construction process, and there is a shortage, there is a queue for construction equipment and services of general contractors.
Real estate is still the only way to save and increase their money for many people. Because they understand that investing in businesses in various industries, or in securities, or in other assets, is much more risky. All the same, the price bottom in the real estate market has already been covered, and now there are very attractive prices - they have decreased compared to those that were 3-5 years ago.
A very large number of people choose to invest in real estate in order to either resell or rent, or to improve their own living conditions.
And so, if we talk about rental housing, you can earn 10-12% per annum - this is more profitable than deposits.
If we talk about the purchase of housing at the initial stage of construction, and its resale closer to completion, then you can earn 25-30% of the cost of such housing. And there are those who have their own business, stable cash receipts, although small, but with the help of installment terms or loans through the partnership of the developer with banks, can afford to buy a home.
The only thing that is worth noting here is that the demand for its volume is not growing as fast as the volume of offers in the real estate market.
That is, today we are seeing a concentration of demand for the top five leading companies that really build quality facilities, favorable acquisition conditions, and can offer facilities that, according to their technical and quality parameters, correspond to what buyers expect. on construction equipment and services of general contracting organizations. This leads to higher prices and cost of housing, respectively.
There are several sources where you can find out objective data about the developer. First of all, the official website of the company. Look at the portfolio of objects that have already been built, which are in the process of construction, as well as planned for the future.
Also, the forums still need to be studied, because there really are real reviews of buyers who have purchased an apartment from one or another developer, and can provide feedback on whether they received the keys to their apartment on time, whether documents were issued on time, and so on.
You should also visit the construction territory, see the pace of construction.
If, for example, a person arrived at the location, looked at the state of construction, then arrived after 2-3 weeks, and there were no changes - the monolith of the building did not grow, the installed windows did not appear, there are no workers who are actively engaged in construction, there is no equipment working on this site is a “bell”, a reason to worry.This suggests that financing is not enough, or is it a developer who finances construction only through sales revenue. Be sure to look at the volume of construction and sources of financing of the company.
There are companies, and our company, in particular, who finance construction at their own expense — these are not loans and no proceeds from sales. “Intergal-Bud” has its own stock - this means that each object will be completed, despite sales or the economic situation in the country.
It is worth paying attention to the guarantees provided by the developer. So, "Intergal-Bud" company provides three main categories of guarantees.
The first is that we timely give the keys to the apartment, the buyer will be settled at that time, as we promised.
Secondly, it is a guarantee for the quality and volume of repairs performed. Since today we are the only ones to offer turnkey repairs from the developer, which even include a kitchen with built-in equipment. It is very convenient and cheaper than repairing it yourself, since it is controlled by the customer’s services, our company, our technical supervision. It is clear that on a large scale and cost less for the purchase of repair goods and works than for individual repairs. Plus, it eliminates the problem of noise and dirt.
Now on our complexes more than half of the apartments are sold with the option "full repair". Therefore, in each such RC there is a showroom, where the types of layouts and finishing options are presented. The buyer looks at this showroom, it is stipulated in the contract that the quality, volume, appearance of the work must correspond to the showroom, and if not, the developer at his own expense undertakes to bring it into conformity. Also, depending on the type of work and materials for a period of up to 12 months, the developer guarantees the maintenance of this repair - that is, the correction of some shortcomings, problems, if they arise - also at the expense of the company.
And the third category of guarantees. Since we provide long-term installment plans from the developer up to 7 years without the involvement of credit institutions. If there are any negative events, for example, the buyer loses his job, or there is a loss of working capacity, or the number of children increases to four or five or more, the company fixes its obligations to revise the terms of installments. Or reduce the amount of the balance - partially close the money, or view the installment period - to extend it, for example. That is, in some way to meet the buyer, so that he understands that if something happens, he will not be left alone with his misfortune, the company will really help to preserve this housing.
The success of the company “Integral-Bud” is in its approach, attitude towards customers, with whom we guarantee 100% fulfillment of obligations by our company. Success is also in our team - in the people who create this housing. Starting from the architects who design these residential complexes, the analysts who select the land, the technical departments that control the processes and make the best decisions. Also this year we plan to set our own record - to put into operation 448 thousand square meters. of housing.
Also this year, another 9 new residential complexes will be launched - mainly in the center and in the central districts of Kiev, which, I hope, will also cause positive emotions among our customers and will interest the market".