Commercial Director Capital Group Alexey Belousov has told, what Builder, if private investors sell the apartments are cheaper
– All buyers of apartments in new buildings can be divided into three groups. First – those who shop at “the pit” and to build the first 2-3 floors of that building readiness at home, and the price tag is still minimal. The purpose of such purchases, as a rule, investment apartments in the future will either be resold or rented.
Pricing on the object depends on the developer and his sales policy, and the number of offers from the investor in the secondary market
By the way, contrary to popular opinion, today, less investment purchases at this stage of construction did not, because other stable investment instruments, except as real estate, still not a lot. The second group – those who purchase new housing when the new project has already made more than 80% of the work. That is, when “box” is already built, left engineering and interior zones and construction areas. It’s basically end buyers who plan to live in an apartment by themselves.
And finally, the third group that makes a purchase between these stages, the so – called undecided, “dark horse”. They can equally be as final buyers, and investors depending on the market or personal situation.
How panic affects prices in the project
– Pricing on the object depends on the developer and his sales policy, and the number of offers from the investor on the secondary market. In 2008-2009, when we were actively selling the project “Avenue 77” in Chertanovo, the economic crisis, and investors have settled a panic.
A large number of apartments in Moscow was exposed to the market at prices less than 2 thousand dollars per square meter, despite the fact that we at that time were on sale at 3 thousand dollars per meter, which is consistent with the General market situation, and the final stages of completion of the complex. Investors willing to sell “squares” for 1 thousand dollars lower than ours, still remain in the win by buying something they have made at “the pit”, when the apartment was sold at $ 600-700 per square meter.
The most effective tool is the installment payments, which can offer only the developer
To stop panic and not to ruin the market for quality ready-made object, the value of which could not be below 3 thousand dollars per square meter, we have decided to suspend sales on the assignment – this possibility was spelled out in the contract with the buyers (by the way, this was not the equity participation agreement).
After six months, the market returned to its pre-crisis levels and all the investors, wishing to withdraw from the project, were able to implement their contracts at the market price, which at the time exceeded 3 thousand dollars.
Where the buyer to seek benefits
– Today, in one form or another control from the developer pricing on the facility is possible in several ways. Traditional method: control the assignment of rights of claim can be spelled out in the original contract with the buyer, but POS does not allow 100% lockup of the secondary market on the subject.
Alternatively, the developer can use a wide programme of loyalty to the buyer, making his eyes the purchase of apartments in the primary market more attractive than in the secondary, even if the price tag in the first case will be higher. The most effective tool is the installment payments, which can offer only the developer. In most cases, an option for purchasers to make the sum of parts is much more important and much more urgent than the lower contract price that you must repay in a lump sum.
Therefore, all buyers who choose between proposals from the developer and the investor I would recommend to closely study the conditions and the other transaction
The second mechanism is a transfer of money by wire transfer and specifying in the contract the actual amount of purchase. In the case of sales on the assignment, as a rule, investors want to withdraw cash (there is a transaction traditionally pass through the banking cell), and the contract price may be understated relative to the real value of the transaction. For the buyer of the transaction in cash, as a rule, is not always easy, and lowering the cost of purchase, in addition to the risks puts into question the use of a mortgage.
And finally, the Builder can offer the buyer the individual conditions for the purchase. All these options allow the developer and the investor to realize their maximum volumes at market conditions without collapse of the market for the object.
For example, in the LCD “Tricolor” of all of trades on the share of the secondary market accounts for only 10%. Therefore, all buyers who choose between proposals from the developer and the investor I would recommend to closely examine the terms of the other transaction. Perhaps the benefit will be not where it seems at first glance.