RISKS OF INVESTMENT IN REAL ESTATE

If you analyze the risks when investing in real estate, you can conditionally divide them into four large groups.

The first group is the term of investment

Usually, investing in real estate takes place for a long time. Here we are talking about new construction, where investment starts from the beginning of construction. It can take years from the start of construction until the real estate is put into operation. It is not known how the economic situation in Ukraine will develop, and therefore the first risk is the term of investing in real estate. As profit can be made after a long period of time. If we talk about the secondary real estate market, then the period is also important here, because depending on the investment goal, the period of payback and receiving income can also last several years.

Investments are one of the opportunities for making a profit. And investments in real estate have always been popular among businesses and citizens who want to invest money profitably. But as in any area of ​​investment, there are certain risks.

The second group is price policy and demand.

Prices for building materials have been rising rapidly in recent years. That is, in order to get a ready-made real estate from which you can make a profit, you need deposits. And taking into account the low level of income of the population, the demand may not be as expected as at the beginning of investment.

The third group is documentary risks.

When investing in real estate, it is necessary to study in detail all the documents of the investment object. Starting with the purpose of the land plot and ending with the analysis of the registers in order to understand whether it is worth dealing with this or that developer. After all, there are many situations when construction is "frozen" on the basis of a court decision, and then it is not easy to return your investments. If difficulties arise at this stage, it is worth contacting a real estate lawyer who can analyze the investment object in detail and answer questions.

The fourth group is the investment scheme and the choice of the investment object.

When investing in real estate, it is worth evaluating and analyzing the developer's obligations to investors. For this, it is necessary to approach the conclusion of the contract with all seriousness. Since the contract must clearly state the terms of putting the real estate into operation and fines for improper execution of the contract. If all conditions are not clearly spelled out in the contract, then this is an additional risk of losing your investment.

Regarding the object of investment, it is also worth understanding here that investments in commercial real estate can bring profit faster than in residential real estate. This is due to the fact that usually commercial premises are put into operation faster.

So, in conclusion, it is worth noting that regardless of which real estate object you have invested in, there will always be risks. But in order to minimize them, you should not save on the services of a real estate lawyer. After all, it is better to prevent possible negative consequences than to solve them in the future.