Where to invest money in 2018? Perhaps, almost everyone heard from friends or read in the social networks history about the huge profits that could be derived from investing in suburban land. Is it worth it to get involved in such a risky event?
The source data
It is well known that the choice of land for investment purposes it is necessary to examine the scheme of territorial planning of a particular area. If we are talking about the suburbs, the relevant documents appear regularly in the portal of state and municipal services of Moscow region. In addition, information on all subjects of Russia, available on the website of the Federal state information system of territorial planning (FGIS TP).
As stated in the town planning unit of the Leningrad oblast administration, FGIS TP is the most complete information system in the spatial plans of settlements. However, information about future development is on the websites of each individual municipality, there may be data on changes of status of land that do not fall in FGIS TP. Can also be a useful scheme of territorial development of the Leningrad region, posted on the website of the Committee for architecture and urban planning.
In addition, a source of information about the territorial development of municipalities of the Leningrad region is an Information system of ensuring town-planning activity (ISCAS), told the portal Cottage.ru first Deputy Chairman of the Committee for architecture and urban development chief architect of the Leningrad region Mikhail Kireev.
If there will begin construction of a warehouse, factory, highway heavy traffic, or worse, there will be a dump, the site will inevitably drop in price. However, the construction nearby public transportation stations, shopping malls, schools, kindergartens and clinics, in a word, what is usually called blessings of civilization rather increase the cost of land. The main question is whether to implicitly trust plans published by the government.
Seven Fridays in a week
Experts say that in practice, plans of spatial planning has changed many times, and the most obvious proof of that is the annexation of New Moscow. In connection with the intensive construction of roads, interchanges, and high-rise buildings, some suburban and cottage communities were like a pair of pliers sandwiched between the highways and skyscrapers that negatively affected their value.
However, deterioration of the characteristics of the terrain is difficult to insure not only in Moscow but also in any suburb. And sometimes even sad oddities.
“For example, one of the suburban elite settlements sold with a view of the woods and the field, says the managing Director of “Metrium Premium” and a member of the affiliate network of CBRE Ilya Mogunov. The developer claimed that this view will always remain, as on the neighbouring property the pipeline passes. However, in the end, after several years there was a developer that moved the pipeline, and built a new cottage village, which is partly closed, the view of the forest owners, who paid for him big money. Thus, even a substantial monumental structure undergo changes, not to mention the objects that exist still in the plans. So, in my opinion, the investor has no absolute source that we can rely on when choosing a land plot”.
Commercial Director of “FACT. Cottage villages” Alexey Barinov also advises not to rely solely on the information presented on the websites of government agencies. Especially when it comes to investing large sums of money. Although the site FGIS TP you can view information about the development plans of the settlement, on the portal you can see only the sketch and not the real picture. This happens because municipalities are not provided, as such, budgets for the development. Construction work is in most cases carried out by private investors.
Moreover, the authorities themselves did not consider these online resources is absolutely reliable basis for making investment decisions. “These sources do not provide exhaustive information, as enforcement of regulations can be extended in time, or they can be changed, told in the town-planning unit of the Leningrad oblast administration. More information can be obtained by personal communication with representatives of the municipal authorities”.
Analysis of prices for suburban property in this regard gives a definite answer. Generally, the investor wants to buy an empty lot, to build a cottage, and then resell the complete house with all facilities. “Can’t remember a single example to land sold in the same form in which purchased, says the head of the Expert Bureau “Speransky” Dmitry Speransky. All profitable history associated with the development of the purchased land and the attachment to it additional funds.”
At the same time and ready country house as an investment, the experts do not consider a good idea.
According to the Director General of the cottage settlement “Lamberi” Alexey Potapov,
in the luxury segment in Leningrad region for 10 years, almost bought objects for speculation. “In our projects almost all transactions are with a mortgage, adds the head of the sales Department of the company “the Theorem” Irina Kudryavtseva. It is clear that nobody will make investments using the credit money is economic madness.” Thus, the question of whether to invest in house or land their money can be considered solved.
Bureaucracy and technical issues
But when buying land, you can stumble on a serious pitfalls.
“Interestingly, in recent years, investors are often asked to pick up agricultural land, because the owners offer a good discount, says Ilya Mogunov. However, it is worth noting some drawbacks of this type of plots. Every year the procedure of conversion of agricultural land into the category of individual housing construction (individual housing) is more complicated. There is a risk that, ultimately, the investor will end up with an illiquid asset that may have to resell with a loss, that is still cheaper than a purchased object. In addition, many agricultural land located on the border of Moscow region and neighboring areas, that is, removed from Moscow. Today buyers prefer to live closer to Moscow or at least near major cities and towns with all accompanying infrastructure. Finally, the investor’s risks associated with the seizure of land by the state for a long non-use, if the buyer can’t change the purpose of the land”.
In addition, for the construction of a cottage settlement (in case of transfer of land in the category of individual housing construction) the site should be close to electrical distribution substations, settlements, in an area with favorable environmental conditions, infrastructure etc., adds Ilya Mogunov. It is therefore necessary to specify in advance in the “Mosenergosbyt”, you do not have to pull communication a few hundred meters to secure the area all necessary, and enough inherent power to connect to another object. Otherwise the cost of such services can reach budget the purchase of the land.
The vicissitudes of politics and Economics
In addition to bureaucratic and technical aspects, the cost of land is also affected by economic and political factors that can lead to stagnation in the market as a whole, reminds Alexey Barinov. A similar situation was observed on the market of the Leningrad region until 2008. During this period, were popular trade in the currency that the buyers signed, hoping to multiply their investments. As a result, many of them did not return even the amount of investment.
To be a professional to be able to bargain
According to the expert of the company “FACT. Cottage villages”, investors in land can be divided into two groups. The first is the “hunters” with big budgets in search of the overlooked, the cost of which potentially needs to grow. In the second category buyers with more modest capital. They are interested in a land deal, for example, at the start of sales of cottage settlement. They understand that at the time of delivery of services and infrastructure in the project price weave will grow.
But what would have been the capital of the investor, the real estate professionals I hasten to remind you that a single table of prices is not and can not be. Sellers of various objects, land in a cottage village, and just in the villages, establish the cost solely on his arbitrary will. Two similar characteristics of the site can often be bought at totally different prices.
“Everything depends on the ability to bargain and negotiate the price draws attention Dmitry Speransky. In one case, the site will generate revenue, even if it immediately to resell, in another case will not generate revenue never. In this global unlike investments in stocks or gold: there is a single market price at which transactions are made. Information from government agencies on the development site can be a useful bargaining tool, but she will not give you an idea whether you this piece of land to sell more expensive than bought”. Therefore, only a qualified buyer, having knowledge, well versed in the specifics of the market, can count on some profit. “The townsfolk strongly advise to invest in land with the investment objectives, said the expert. Look for other tools. Or buy land for yourself, build on it a cottage and have fun”.
If you do decide
If, despite this warning, a desire to invest in the land still remained, then finally, to give some advice from the experts suburban real estate market, about which they show unanimity. But it should be understood that it cannot in the proper sense of the word ensure success for the unskilled investor.
First, the ground it is better not to buy in a bare field and in the ready-built area. If the adjacent territory is built up permanent structures there, most likely, have nowhere to appear, landfills, roads, skyscrapers and warehouses.
Second, in conditions of economic crisis and dwindling stockpile of money from customers, many of them become more demanding. Now people are willing to spend money on high-quality suburban housing, where they will be able to have the usual city amenities and level of comfort. Therefore, it is better not to invest in rural areas without communications, and in plots without a contract, situated on the territory of cottage settlements. In addition, the purchaser of land in an organized settlement will be freed from bureaucratic difficulties in the construction of houses.
But if the investor finally decided to invest in the vacant land without utilities and capital construction works around, in addition to the development plans of the territories, it must be insider information. And this requires significant communication, which is, again, more likely for professionals than for ordinary citizens.