How to make money by buying an apartment in a new building from private investors. Investing in new buildings: buying studios and small apartments for resale How to make money on the construction of an apartment

How to make money by buying an apartment in a new building from private investors. Investing in new buildings: buying studios and small apartments for resale How to make money on the construction of an apartment

20.10.2021 Medicines

People who saved their ruble savings in 2014 through the purchase of real estate will soon be in for an unpleasant surprise - tax innovations that will take effect in 2016. From January 1, it will be possible to sell an apartment without paying taxes only after five years (instead of three, as now). This is pushing many investors to actively go into cash now - selling their investment square meters through the assignment of rights. Nadezhda Telesh, managing partner of the Moscow real estate agency Dream Realty, discusses the acquisition of such apartments.

Today, the most risk-free and interesting from the point of view of medium-term (three to five years) investment is the purchase of apartments in a new building from private investors.

And there are several reasons for this:

1) the apartment rental business has dropped significantly, and considering the purchase of finished secondary real estate from this point of view is not very advisable. Judge for yourself: payback period of more than 20 years, service costs and hassle with tenants, taking into account reduced rental rates, lead to the fact that the property becomes more of a liability than an asset;

2) taking into account the fact that a significant volume of new buildings is frozen or shifted in time, investments at any stage from the foundation pit to the installation of communications in the medium term represent an increased risk and the freezing of their investments for an indefinite period. In this case, we are considering options at the excavation stage and unfinished construction.

In this regard, if we are not considering the option of solving a personal housing problem, but are relying on the investment attractiveness of the property, we recommend giving preference to secondary real estate in new buildings sold by private investors.

Reason #1: price. The price of apartments in new buildings today differs by 5-10% from the price of the developer himself. And the price for private investors is lower due to the fact that they are not tied to credit obligations and a sales plan; they are ready to fix their profits, which usually range from 50% to 70% of the initial investment.

When purchasing such objects, it is not at all necessary to invest in repairs (especially taking into account the new prices pegged to the euro and dollar).

In addition, the seller is interested in withdrawing his money without waiting for changes in tax legislation, which will come into force in 2016 and will tie the calculation of the tax base to the cadastral value of the property. And a five-year wait for a tax deduction is clearly not part of the investor’s plans.

Reason No. 2: lack of legal risks. The presence of freshly received property and keys in hand, as well as the high probability of the absence of rights of third parties to the object (which in any case should be checked) are conclusive evidence of the legal purity of the object.

The objects we are considering in three years in the same condition, namely “in concrete,” will bring their owner a profit of about 30-40%, which is at least 10% per annum. This option is ideal for a conservative investor who is ready to make a reasonable profit without incurring virtually any risks.

In any case, before buying anything, you need to analyze the growth prospects of the area, the quality of construction, the possibility of a metro, infrastructure, parking problems and several other factors. Negative consequences the presence or absence of which can negate this entire purchase.

Nadezhda Telesh specially for RBC Real Estate

Many people have been buying real estate in recent months to invest money with a view to selling it later. This type of business, like real estate resale, is not suitable for everyone. Firstly, considerable initial investment is required. Secondly, there is a danger of becoming a victim of an unscrupulous business scheme, or simply fraud. Large sums of money always attract scammers. Both of these circumstances lead to natural doubts, because the risk is quite high. How to protect your money as much as possible? According to experts, only preliminary study of the business, down to the nuances, will help a novice self-taught realtor minimize the degree of risk and ensure a good, and most importantly, stable income.

There are different ways to organize an apartment resale business. There are several most common methods that are popular among real estate businessmen. In order to consider each of them in detail and not miss important details, we decided to turn to one of the authoritative sources on the modern Russian real estate market, Artur Mikhailovich Yakushev, General Director.

Arthur Mikhailovich, it is widely believed that you can make great money on the resale of apartments in new buildings. They say that buying an apartment at the very beginning of construction, when builders literally start digging a foundation pit, can bring from 200 to 300 percent profit. Is it so?

Buying an apartment at this stage of construction is associated with the best price and some risk. The fact is that even a seemingly almost finished house can wait for quite a long time to connect communications to it and actually put it into operation. This can happen for various reasons, but the fact remains: the numbers you mentioned are out of the question until the facility is fully ready. This is the risk. But even at a stage far from commissioning, the apartment can be sold, but it is unlikely that it will be possible to make a profit in the desired amount.

So, with new buildings it is clear: the maximum profit is at the settlement stage, and until then anything can happen. What can be said about the acquisition of so-called secondary housing?

You can buy an inexpensive apartment without renovation, equip it, make cosmetic (or major) repairs and sell it at a profit. Of course, the cash costs for its purchase will be significantly higher than for the purchase of an apartment in a building under construction. At the same time, it is better to do repairs in the purchased apartment on your own. Today there are a lot of building materials that are relatively inexpensive and have good performance characteristics. Having spent a very small amount of money, you can make high-quality cosmetic repairs in your apartment without resorting to the help of specialists, whose payment will take almost all the profit you dreamed of. To do this, it is not necessary to have professional skills or great physical strength, and an ordinary woman can cope with this kind of work. Thus, you can save quite a lot and, accordingly, make good money. Yes, this is a lot of work, but it is guaranteed to pay off.

- What else can you use to make more money from selling an apartment?

Many people, due to some circumstances, need to urgently sell their apartment. Due to the urgency, they usually put the apartment up for sale at a fairly low price. If you skillfully ask for a discount, perhaps sellers will give it to you. They will not bargain over small things, because they need to get money as quickly as possible. After successfully purchasing an apartment, all that remains is to put it up for sale at a price that suits you. The main thing is not to let yourself be drawn into the excitement and not to lose a sense of reality when preparing for a transaction: it is on the desire for a quick profit that scammers catch their luck, involving buyers in a fast pace and forcing them to make a mistake.

- Can you advise novice realtors to work with rooms in communal apartments?

This method of acquiring real estate consists of the phased purchase of individual rooms located in communal apartment, which, as a rule, has a fairly large area. The cost of all individual rooms you purchase will be much lower than the price of one multi-room apartment.

If, moreover, this communal apartment is located in a prestigious area, its resale value will be even higher. Thus, by purchasing several separate rooms in a communal apartment and making cosmetic repairs to them, you can sell large apartment very profitable.

It is necessary, however, to take into account that purchasing individual rooms in a communal apartment will require a long time to complete the entire package of documents for each room. In the process of purchasing rooms, unforeseen difficulties may arise, so it is better to carry out such a business with the involvement of professional lawyers and realtors, which also costs money.

- What should you consider first of all when starting to resell apartments?

For those entering the business of reselling apartments, I recommend that you first purchase only liquid apartments - one-room or two-room apartments. An apartment with more rooms costs much more, and there are significantly fewer real buyers.

When running such a business, you need to have patience and understand that delays in apartment sales occur frequently. Sometimes you have to wait a fairly long period of time for an acceptable deal for the purchase and sale of an apartment - from several months to several years.

Don’t forget about the cost of realtor and lawyer services. Even if you lose about 4%-6% of your profit, you will protect yourself from possible deception by dishonest sellers or - which also happens! - buyers. Qualified assistance when selling or buying an apartment is never superfluous even for experienced market participants.

If a situation arises where you have to wait a long time for the sale of the purchased apartment, you can always rent it out for both long-term and short-term rent. Tenants should be warned and a condition should be written into the contract that when the apartment is actually sold, they will have to vacate it. An apartment rented out will not be a dead weight, but will bring in real money, compensating for lost profits from funds “frozen” while waiting for a deal.

- We thank Artur Mikhailovich Yakushev, General Director of the Horizon Development Group of Companies, for detailed answers and recommendations.

We consider it useful to remind you that the resale of apartments is a very specific, complex and risky business. Study the experience of specialists, delve into all the details, use the support of professionals, make informed decisions.
Happy sales!

Many wealthy Russians Lately actively buying residential real estate to invest money for further resale. It is widely believed that you can make good money by buying an apartment during construction and selling it when the house is completed and put into operation.

They say that buying an apartment at the excavation stage, i.e. when a construction organization just starts constructing a project, it can bring about 200 percent profit.

In fact, it's not that simple. This type of business has its own specifics, so it is not suitable for everyone. Firstly, to purchase even the most budget real estate, you need a serious initial investment of funds. Secondly, no one is immune from meeting unscrupulous developers, or simply swindlers.

Moreover, even a seemingly almost completely completed house may wait several years for connection to communications and actual commissioning. Therefore, only a detailed preliminary study of the real estate market and all its pitfalls will minimize risks and ensure good earnings.

Several ways to organize a business resale of apartments

You can make money on the resale of apartments without dealing with new buildings, because there is also a secondary market. Let us give as an example several of the most common business schemes that allow you to make a profit on the secondary market:

1. We buy a “killed” apartment, we do inexpensive cosmetic repairs and sell them at a profit. In this case, the cash costs for purchasing an apartment will be significantly higher than for purchasing an apartment during the construction stage, but the risks are minimized. The main thing is to rationally approach the issue of arrangement.

Today, the market offers a lot of inexpensive building materials that have good performance characteristics. By spending a small amount of money, you can get an apartment with high-quality cosmetic renovations, which will quickly find its buyer. In this way you can earn up to 15-20% of the original cost of housing.

2. Urgent purchase of apartments. Often, due to some circumstances, owners urgently need to sell their apartment. In this case, in order to speed up the sales process, they offer the property at a price 10-15% lower than the market average. After a successful transaction, all that remains is to put the apartment up for leisurely sale at an adequate price.

3. Rooms in communal apartments. This scheme consists of a phased purchase of separate rooms located in the same communal apartment. The cost of all purchased individual rooms will be approximately 20% lower than the cost of the entire apartment. The most difficult thing here is to come to an agreement with all homeowners, which is not always possible.

Which apartments should I buy for resale?

For beginners just entering the apartment resale business, experts recommend that they first purchase only liquid apartments, that is, those that can be quickly sold. Today these are one-room or two-room apartments in the middle price category.

An apartment with a large area is more expensive, and there will be significantly fewer real buyers for it.

If the apartment is not for sale

You need to understand that an apartment is not a loaf of bread, so it is extremely rare that you can sell it in a matter of days. Sometimes you have to wait several months for an acceptable deal.

So that the apartment does not hang as a dead weight, but makes a profit, it can be rented out, warning the tenants that when a real buyer is found, they will have to vacate the living space.

Flipping is the purchase of a home for the purpose of quick resale, an extremely popular way of making money in the West. In Russia, this method of generating income is not yet popular. In this article we will give tips that can help readers successfully make money from flipping.

Drawing up a clear action plan is the first step of any flipper

Well planned is half done. This aphorism is especially relevant for people involved in flipping. Without a clear action plan, making money on the quick resale of apartments is almost impossible. It is necessary to clearly understand the sequence of actions.

1. Analysis of the situation on the real estate market

A novice flipper needs to carefully study and understand the current situation on the real estate market: the average market value of various types of housing, the forecast for changes in their prices in the future, the level of demand for these objects and similar issues. This will allow you to choose the right property to purchase and increase the chances of its quick and profitable sale.

2. A clear spending plan

It is also important to clearly plan how much money will be spent on the entire resale operation, taking into account the price of the property, the costs of improvements carried out in it, advertising for potential buyers, legal support, and payment of taxes.

Since the transaction must be completed as quickly as possible, you should not get involved in a mortgage or take out a loan to obtain the missing funds, because completing all the documents will take a lot of time, and the interest on the loan can “eat up” a significant part of the profit.

When budgeting your financial transaction, set aside a small amount for unexpected expenses. After all, in the most ideal plan, something will always go wrong. It will be a shame if, because of some little thing, like an unexpected increase in the price of building materials, your carefully planned deal is in jeopardy.

3. Options for compensation for possible losses

Another important aspect that needs to be thought through in advance is calculating the options for compensation for losses in the event that the home cannot be sold for a long time. You can calculate the possible income from the rental of real estate that you plan to purchase for rent.

4. Analysis of legislation on registration of transactions for the purchase and sale of real estate

It is important to analyze the legislation on the execution of such transactions. It is important to clearly understand what documents are needed from the buyer and seller when concluding a contract for the sale of housing, where to go to register property rights, and many other points. This will allow you not to waste time when buying or selling an object.

How to choose the right item to buy

There are several types of real estate that flippers can make money from.

1. Undervalued housing

Apartments or houses near which important infrastructure facilities will soon be built will certainly increase in price after their construction is completed. These could be metro stations, hypermarkets or large office centers.

In Russia, speculation regarding apartments in new buildings in Sochi has received wide publicity. Enterprising businessmen who bought apartments there in advance and sold them before the crisis earned a lot of money in just a few months.

According to experts, a similar situation should occur on the eve of the 2018 FIFA World Cup. The rise in housing prices in cities hosting championship matches should begin several months before the start of the World Cup.

2. Collateral property

Banks hold auctions to sell debtors' property. As a rule, the cost of such a lot starts at 80% and can go down to 40% of the market value of the property. Information about auctions is often posted on banks' websites. True, the flipper will have to constantly monitor them in order to obtain the necessary information, while the most valuable objects are bought by interested parties not at public auctions, but privately, but still some Russians manage to get decent housing at auctions on the cheap.

3. Forced urgent sale of housing

It happens that the owners of an apartment or house decided to move to another city or country or they urgently needed a large amount of money due to unexpected unforeseen circumstances. In this case, they will not have to bargain for a long time and their housing will most likely be purchased at a price below the market price. Such options are not found often, but the profit received more than compensates for all the difficulties in finding them.

4. Apartments without renovation

The easiest option for a flipper is to purchase an apartment without finishing or in a “dead” state. According to some data, good repairs increase the cost of housing by 5-10%. And after high-quality finishing of luxury real estate, the profit can be 20-25% of the amount invested in the apartment.

Whatever type of real estate the flipper chooses, he needs to remember that the easiest way to sell is affordable housing that a family with an average income can afford. Of course, you can make a much larger profit on the resale of an elite house or apartment, but finding buyers for such an object is much more difficult.

Having a team of professionals is the key to success in flipping

The operation of reselling an apartment is divided into many stages and each of them requires special knowledge, so for people who want to engage in flipping, it is very important to select a team of professionals, where everyone will be responsible for their part of the work.

You can't do it without:

an experienced real estate agent who knows the market conditions well, who can select a suitable property and then find buyers for it;
people who will carry out home renovations or at least (if the flipper does the renovations himself) a good designer who will make a design project;
a competent lawyer who can take on legal support of transactions.

Competent repairs with minimal costs are the key to success

In order for the interior of an apartment to impress buyers, it is not necessary to invest tens of thousands of dollars in renovation. After all, expensive does not mean stylish. It is much more important to make a good housing design project.

Thanks to it, you can rationally arrange furniture and change lighting, which will help visually increase the space. And the right combinations of colors of walls, pillows, carpets, curtains, furniture upholstery and various accessories, such as paintings on the walls or figurines on the shelves, can add individuality to the interior of the apartment and change it beyond recognition.

The art of selling a home quickly

There are several options for quickly selling real estate, which have been successfully used by all realtors for many years.

Option 1. Impromptu auction

Several potential buyers who have expressed interest in a property are invited to view the property at the same time. This creates the illusion for them that the apartment is in demand and they need to quickly “stake it out for themselves” before the property is “taken away” by competitors. Some enterprising realtors invite fake buyers to a meeting, who, with their increased interest, provoke real clients into making a spontaneous purchase.

Option 2. Telephone auction

The seller alternately calls several potential buyers who have agreed to purchase. After the first buyer agrees to purchase a home at a predetermined price, he dials the number of another, says that the conditions have changed a little and quotes a slightly higher amount. If the second buyer agrees, the number of the third is dialed and an even larger amount is called. This way you can get the maximum selling price for your apartment without spending a lot of time negotiating with clients.

Option 3. Sale to a real estate agency

If you cannot find a buyer for your home for a long time, you can try to sell the apartment to a real estate agency. This option is relevant when there is no buyer for the property for a long time or the flipper for some reason needs to quickly exit the project. A significant disadvantage of this scheme is the selling price. The agency will be interested in the apartment if it sees an opportunity to make money on its resale. And for this, its price must be lower than the market price. With a growing housing market, the difference should be 70-80%, with a falling market - 50-60%.

Tax issue

The main reason why flipping has not become widespread in Russia is the peculiarities of tax legislation. The buyer of real estate is not subject to tax, but the seller is required to pay 13% of its sale price. Let's say a flipper bought an apartment for 4 million rubles, made improvements to it for 500 thousand rubles, and then sold it for 6 million rubles. In this case, the amount of sales tax that he is required to pay is 780,000 rubles, which eats up a significant part of the profit. But there are a number of ways to minimize tax risks.

Method 1

If the sale price of housing is less than three million rubles, the sales tax is the same 13%, but the seller has the right to receive from the state tax deduction in the amount of 260 thousand rubles, and the buyer - 130 thousand rubles. It is necessary that the purchase and sale be carried out within one calendar year (tax period), otherwise the parties to the agreement are not entitled to a tax deduction.

Method 2

In some cases, when the actual value of the property exceeds the legal limit, the buyer and seller agree that the agreement will indicate an amount less than three million, and the remaining money will be transferred in cash. Although this scheme is illegal, there are still people who want to save money in this way.

Method 3

According to the Tax Code of the Russian Federation, if the seller of real estate has owned it for more than three years from the date of conclusion of the contract, he is not required to pay sales tax at all.