Investments in real estate construction. Investments in housing construction: investment mechanisms and possible risks

In "square meters" - real estate investment. After reading this article, you will find out what is attractive this direction investment, what risks does it carry, what is necessary in order to invest in real estate construction, in what ways it can be done, and much more useful information on this topic.

Investing in housing construction: how profitable is it?

We can all constantly observe the emergence and construction of new buildings: new residential buildings, commercial buildings, entire microdistricts appear. And on all this you can make good money, and not only for a construction company, but also for any person who can become an investor and buy out individual apartments / apartments / premises even at the construction stage.

This is beneficial, first of all, because from the moment the construction begins to the commissioning of the facility, real estate increases significantly in price. This growth averages from 40 to 70%, you see, such an increase in capital in a year or two ( average term construction site) is very tempting.

In some cases, the growth in the value of real estate when investing in construction may be even higher. For example, this often happens when it comes to the construction of entire new microdistricts - the process of building the entire microdistrict takes more time, but the constructed objects also grow in price more significantly.

It is possible to invest in housing construction at different stages: both before the start of construction (the so-called “excavation stage”), and further, with a different degree of readiness of the object. Moreover, the price of real estate in a facility under construction always increases with the progress of its construction: on average, for example, for an apartment building, the growth in the cost of apartments is 2-3% with the construction of each new floor.

This option of investing capital against the background of many others can be considered quite reliable and attractive. I will highlight the key advantages of investing in real estate under construction:

1. Real estate is a real, tangible, marketable and relatively liquid asset.
2. When investing in initial stage construction, you can buy real estate with a very significant discount (half the price and even more).
3. Upon completion of construction, you can earn income in two ways: resell the property for more money (one-time speculative income) or rent it out and receive a permanent one.
4. There is a wide range of investment objects (apartments, apartments, commercial premises, different areas, different area, different cost, different builders, varying degrees completion of construction).

However, of course, as elsewhere, there are risks. Let's highlight them too.

1. The risk of bankruptcy or fraud of the developer. Of course there are legislative acts protecting the interests of investors from such risks, but this protection is still not absolute, and its degree may be different.
2. The risk of “prolonged construction” or “unfinished construction”. Due to the bankruptcy of the developer or for other reasons (for example, the inability to resolve certain legal issues, a sharp increase in prices for building materials, etc.), real estate construction may stop or be delayed for an indefinite period.
3. Risk of absence of buyers/tenants. During periods of exacerbation, it is often very difficult to sell real estate at the desired price, the price may fall, it is not easy to find buyers. At the same time, the property received into ownership already immediately begins to require expenses, at least - these are utility bills.

There is another serious disadvantage: investments in housing construction require a fairly large amount of capital, which not everyone has, that is, this direction of investment is not available to everyone.

In general, we can conclude that investment in real estate construction, with a competent approach and risk minimization, is a fairly conservative and, at the same time, profitable capital investment that can bring an investor 50% or more of speculative income in 1-2 years, or reliable source of permanent income for life at half its cost.

Investments in construction: the choice of investment object.

Consider the most common objects that can be used when investing in construction, and their characteristic features.

Residential houses. The most familiar and understandable, and therefore the most popular option for private investors. 1- and 2-room apartments are now considered the most popular, so investors most often purchase them.

Country cottages. Same interesting option, because All more people, especially the wealthy, are now striving for life outside the city, in quieter and more environmentally friendly clean places. Therefore, you can pay attention to the cottage villages under construction and invest there.

How to invest in real estate development?

So, if you are interested in this option of investing capital, let's look at how to put it all into practice. I will outline 5 key stages of investing in construction.

Stage 1 . Builder's choice. It is very important to initially decide on the developer. If you were buying real estate for yourself, then you could start by choosing an object, but if as an investment, it is the developer who should be at the first stage. Because most of lies in it.

When choosing a builder, you should pay attention to the following points:

• The period of activity on the market (the more - the more reliable);
• Financial condition (performance results, reporting statistics);
• The number of already built objects (the more - the more reliable);
• The reputation of the company, reviews of real customers;
• The number of investors already involved in the construction (to some extent, you can rely on their experience);
• Participation in joint ventures with banks (TOP banks will certainly carefully check the developer before lending to him for construction - this can be highly relied upon);
• Availability of all necessary permits for construction, in accordance with applicable law (a very important point!).

Stage 2. Choice of investment object. Next, you need to choose from this developer a specific property in which you will invest. Here you need to pay attention to the following points:

• Type of object (from those discussed above or another);
• The date of commissioning;
• Construction stage;
• Location of the object;
• Planning of acquired premises;
• Infrastructure of the area, transport interchange;
• Prospects for the development of the area;
• Demand for purchased premises.

Stage 3 . Negotiations with the developer, study of documentation. After choosing the desired object, you can contact the commercial department of the developer company for negotiations, verification of all necessary construction documentation and making an investment decision.

There are different schemes for investing in real estate construction. I will not dwell on them in detail now, but I will only say that equity participation is the safest for an investor, one where his interests will be maximally protected. In addition, there are options for making a share contribution, participation in a building cooperative, making an investment contribution, etc.

Before visiting the developer, it is necessary to carefully study the current and current legislation in this area, it is possible even to involve an independent lawyer in this, because the transaction should go through as safely as possible. For example, in Russia, equity participation in construction is regulated by Law No. 214-FZ - be sure to study it in the most careful way.

During the visit, check that the developer has all the construction documents provided for by the current legislation (I do not specifically list them, since the list may change, and for different countries it is different).

Agree on a deal, agree on the desired object and its cost.

Stage 4 . Signing of documents and payment. The result of the negotiations, in case of their positive completion, should be the signing of an agreement and, directly, investment. The contract before signing should also be checked for compliance with the law and the indications in it of all points important for the investor. In particular, these are:

• a clear designation of the premises that the investor acquires;
• construction completion dates;
• a clear indication of the cost per square meter and the total cost of the acquired area;
• an indication of price fixing, the impossibility of changing it, or the possibility under certain circumstances that suit the investor;
• method and terms of payment;
• the procedure for registration of ownership and transfer of documents for ownership to the investor;
• the presence of penalties for each of the parties in case of non-fulfillment of obligations (for example, failure to deliver the object within the specified period);
• procedure for resolving conflicts and disputes.

After signing the contract, it is necessary to make payment to the developer's current account specified in the contract.

Stage 5 . Completion of construction, receipt of documents. And at the last stage, which will take place after some time, after the object is completed and put into operation, the investor receives documents for the ownership of the purchased premises, after which he can dispose of it at his own discretion. For example, immediately resell, or rent, depending on his preferences.

Now you have an idea of ​​what makes real estate investment attractive and how the whole process works. Of course, all this is only the key general information, in the future I plan to reveal some points in more detail in separate articles.

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Construction remains one of the most profitable industries. Investing in residential real estate is very good view long-term investments, there are practically no others that would have the same high profitability and reliability today.

Such investments bring good returns, but they will have to wait, and this option will not suit you if you want to make a profit quickly.

On the other hand, if you are serious and like a solid approach, residential real estate development is a great investment opportunity. In order for investments to make a profit, it is important to calculate the risks in advance, which abound here.

The main areas for investment in construction include:

• residential buildings;
• commercial real estate - for example, office and shopping and entertainment centers;
• cottage settlements;
• manufacturing enterprises;
• hotels and hotel complexes.

More than half of all investments go to the construction of residential buildings and commercial real estate.

At the same time, the construction of housing remains the closest and most accessible area for the population to invest in construction.

There are three options for investing in housing construction:

• in a house under construction for himself;
• acquisition of an apartment in a facility under construction for subsequent;
• acquisition of an apartment at the initial stages of construction () for subsequent resale.

When buying an apartment at the initial stage of building a house or even before laying the foundation, its price will be as low as possible. Thus, acting as a co-investor in the construction of an apartment building, you can end up with good housing without spending a lot of money. However, you will have to wait from one to several years until the house is put into operation.

It is worth noting that, strictly speaking, in this case, you are still a consumer. However, many of those who use such schemes to raise funds will call you an investor.

Acquisition of an apartment for subsequent renting out - good way protect your savings from inflation and at the same time make a profit. Income in the form rent will be small, but later, if you wish, you can sell the apartment in order to invest money somewhere else.

If you buy one or more apartments in the early stage of construction, then the housing acquired in this way can be sold, making a good profit.

Investment mechanisms

Investments in housing construction are engaged in:

• investment funds;
• development companies;
• individuals who act as investors in the construction of houses are equity holders.

Each category uses its own bank lending mechanisms. In general cash are attracted to construction through construction financing funds or funds for real estate operations, through the use of joint investment institutions and the issuance of targeted bonds.

Construction finance funds

To accumulate funds of legal and individuals the Construction Financing Fund may be used. It can be created by a financial company or a bank. To become a member of the fund, you need to sign an appropriate agreement and deposit funds. After that, a certain object will be assigned to you - for example, an apartment.

After you pay the full amount, the fund manager will assign you the rights to this apartment and issue a certificate. It will contain information about you, about the Fund, about the amount you paid, as well as about the house and apartment. After the construction is completed, your residential property will be transferred to you for use.

Real estate funds

The Manager of the Real Estate Operations Fund manages funds received from investors, real estate and other property, as well as property rights and profits received in the course of activities.

FON differs from the Construction Financing Fund in that its participants do not receive apartments in their ownership. They can expect to earn income from rising house prices.

Thus, investors do not have to wait for the construction of the house to be completed - they have the opportunity to sell all or part of their FON certificates at any time.

Joint Investment Institutions

Joint investment institutions include mutual investment and investment corporate funds. By purchasing ISI securities, you can place your funds in order to make a profit in the future. Your money will be used to build real estate. Most often, the owners of joint investment institutions are the developers themselves.

A unit investment fund is a set of assets that belong to the investors-participants of the fund on the basis of common share ownership. They can be both physical and legal entities. The collected funds are directed to the construction of housing, they are managed by the management company.

Investment corporate funds are similar to mutual funds, but have some features. They are created in the form of open joint-stock companies. The issuer redeems the shares acquired from him, paying their cost or providing the ownership of the shareholder with a residential property. Just as in the case of a Mutual Investment Fund, the management company manages the assets.

Issue of target bonds of enterprises

To raise funds, the developer can also issue bonds. This is done, as a rule, at the stage of preparation of design estimates. Such papers may not be tied to a specific object (house), and even more so - to a specific apartment. They are sold at a price below face value and are redeemed at face value.

Another option is the issue of targeted bonds, the fulfillment of the issuer's obligations under which occurs through the transfer of residential real estate.

At the same time, a certain property is assigned to the bondholder. These papers are usually redeemed in lots, and the number of bonds purchased by the consumer corresponds to the number of square meters of the apartment.

Construction Investment Risks

There are many swindlers on the housing construction market who deceive both ordinary citizens acting as equity holders and entire companies. The most common type of scam is runaway with investor money. Usually in the way that non-existent apartments are sold, however, even investment funds are not immune from similar situations by 100%.

To minimize risks, it is necessary to pay attention to the company and the price of construction. It is better if the company has been operating on the market for more than three years and has good story(you can also look at), while the price of residential real estate offered to it should not be low.

Buying real estate under construction is one of the most popular investment options. If the apartment is purchased for personal residence, then its purchase even before commissioning will help save money. When the purpose of investing money is resale, then such an operation will allow the owner to maximize his profit. So how profitable is it to invest in real estate under construction?

Why is it beneficial?

The real estate market remains one of the most stable and attractive for investment. In the long term, the cost of square meters usually continues to grow. Profit from such an operation can reach 25-30%. Moreover, it is not necessary to wait for the completion of construction: at each next stage, your rights to square meters can be sold at a higher price.

It is enough to choose an object and sign a share agreement. With a favorable course of events, the next time the future owner will communicate with the developer when the house has already been put into operation.

The right choice of object

The choice of object depends on the amount of money that can be directed to the purchase. Most cheap option- become a shareholder at the stage of excavation. In this case, you need to be prepared for a long payback period, but you can also count on maximum profit. The closer the completion of construction, the more funds will be required for the purchase, but the payback period and, accordingly, the final income will be shorter.

If the apartment is bought for the purpose of resale, then it is necessary to evaluate its future attractiveness. Even when the developer promises quality housing, with a good layout, parking and other amenities, the infrastructure of the area, transport interchange, proximity to cultural and business centers. An important role is played by the presence of houses of this class under construction nearby: the more there are, the higher the competition will be, and the lower the margin will be able to set the shareholder.

When planning to rent an apartment it must be remembered that the owner will also need additional investments for repair and finishing work. In addition, tenants do not always consider attractive housing that has been built recently. Even if the owner managed to make repairs in a short time, work in other apartments can cause some discomfort. Therefore, you need to be prepared for the fact that such an object is likely to be idle for a certain time.

Risks: how to minimize?

Such a purchase carries with it a certain set of risks:

• The house may not be completed.
• The developer can declare himself bankrupt.
• The State Commission may not put the house into operation.

As a result of the development of events according to one of the scenarios, it will no longer be a loss of profit, but a return of one's own invested money. To minimize these risks, it is worth carefully preparing for the purchase of future housing:

• Check the history of the developer, the presence of claims and litigation.
• Make sure that he proposes to conclude exactly an equity participation agreement, since it is subject to mandatory state registration and is regulated by the law of the Russian Federation “On participation in shared construction of apartment buildings”.
• Check whether the company has a building permit, documents for a land plot and a contract with the authorities.

A good option to reduce risks would be to invest in the construction of houses, for the purchase of apartments in which you can take a mortgage from a large bank. They carefully check the developer so as not to be left without collateral.

Thus, investing in real estate under construction can bring good returns. It is only necessary to carefully and scrupulously choose the developer and the object.