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Main » Articles » Real Estate » Investment Projects

Advice. How to invest in land

Land market provides the private investor is not less than the income-earning opportunities than the housing market.

For the private investor, there are three basic ways to earn on the ground

Transactions on buying and selling land long ago is not uncommon, but the market is just emerging. Until now, no single inventory of land, leaving pricing in this segment opaque nebula remain in the laws that significantly increases the risk of transactions. On the one hand, it reduces the credibility and interest from private investors to buy plots of land, on the other - the yield on the market now can many times exceed the profits from deals with urban housing.

Three ways to wealth

For the private investor, there are three basic ways to earn on the ground. The first - direct speculative investments, that is, acquisition of land for resale at a higher price. According to calculations Managing Partner at Blackwood Konstantin Kovalev, profitability of such operations is around 25-30%. But, according to experts of the Criminal Code "Zoom", now it makes sense to speculate on land only in the territories of Western trends, from Kaluga to Novorizhskoye highway within 30 km from Moscow Ring Road (MKAD). They predicted the end of 2007 the value sotki in these areas will grow by 30-40%. At the same time, the price of land in the east, and beyond 50? Kilometer area will rise much more modest pace. "As unpopular directions (Egoryevskoye or Gorky) for another two or three years is nothing to actively develop and build will not be because there are a lot of undeveloped land in the 50-kilometer zone and further to the more prestigious areas such as the Kaluga and Novorizhskoe" -- Head of Department believes the department of marketing analysis marketing analysis of the Criminal Code "Zoom" Igor Lebedev. However, Konstantin Kovalev completely different view on the situation. In his view, the price of land near the ring has reached its maximum psychological and almost no interest from the standpoint of investment. "On the contrary, in the third ring lands region (over 30-50 km from Moscow, depending on the direction of) the market is characterized by low liquidity, respectively, the price is often tens of times lower than the cost of a similar area, located 20 miles closer to Moscow. Consequently, a person invested in the purchase of land here can expect to increase their investments in hundreds of percent for the past three or four years "- he predicts.

According to experts of the company RIGroup, this option is suitable for professional investors, since it presupposes a good knowledge of the market and a flair for undervalued assets. "Under this option you can get a bigger yield up to 100% per annum and above. You can recommend investors to monitor the development and reconstruction of highways near Moscow. For example, we expect rapid growth of prices for land on the Kiev highway, reconstruction of which will be completed in 2009," - says head of residential real estate company RIGroup Alexandre Vinokourov.

In any case, experts believe that the very speculation in land recede into the past and are becoming less profitable.

"In connection with the said law, which allows you to build on agricultural land, most likely, their value will grow, and the price of land settlement - to fall. In addition, if the land tax will be raised, it is very much hit the big landowners. Many of the They will either develop and explore the lands that they have, or get rid of them. If they choose the first option, it would increase supply and, consequently, to reduce the cost of specific objects. If they decide to sell, it will lead to glut in the market and reduce the cost of the land ", says Igor Lebedev.

The second way - buy a plot with a house in the village organized in the early stages of construction and then resell it at a higher price. If a segment of the urban housing purchase of an apartment at the stage of excavation, one of the most common schemes, in the case of country houses and townhouses, it has rarely used: it was a shortage of high quality and low cost settlements, and those that have, dealt with customers instantly, often for their own needs. "This path is the least risky investment. The threshold of the entrance of 200 thousand dollars for the village economy class, from 400 thousand - for the lower segment of the business class. The most promising areas for such investment are the homes and lands in Kiev and Kaluga area", - considers Alexandre Vinokourov. "It should look at the trend, transport availability, infrastructure and many other factors that influence the price. Error in the choice of an investment may lead to losses, while successful investment will provide up to 20-30% of the profits," - say market participants.

Build yourself

The third way - purchase of land without a contract. That is, purchased land in organized cottage village and then on it's own funds and built the house, which was subsequently sold at a higher cost. According to experts, the highest profit to the investor brings just such a scheme.

"The independent contractor has been attracting investors to build a house will cost on average 20% cheaper than the contractor's works from the developer village, - says head of the suburban real estate company Peresvet - Real Estate, 'Basil DAC. - Savings can reach 40%. In , it is important that the costs are spread over time. Relatively speaking, today you are buying the land, and tomorrow put money into building a house. Land with a contract and without the same costs, the profit is, experts say, is obtained by optimizing the construction costs. You can choose the less costly projects, while developers ekonomklassa towns offer a limited range of options for homes and, as a rule, somewhat larger in area than the customers expect, "- says CEO Alex Vesco Consulting Averyanov. "For example, the weaving of land in 30? Kilometer zone is about 10 thousand dollars, and for an area of 15 hundred parts you will pay 150 thousand, the construction will cost another 200 thousand dollars. You can sell a house for 500 thousand dollars, however, demand will depend on the liquidity of the direction (the most in demand at home and lands situated on Novorizhskoye, Kaluga, Rublyovo-Uspensky, Dmitrovsky and Kiev areas), the location of the house and the settlement itself, the quality of the project. A successful scenario the investor earns about 30-35%, although here we do not take into account inflation and taxes, which will have to pay to the amount received from the sale of the house ", - adds the Head of suburban real estate agency real estate MIAN Svetlana Kondachkova. At the same time, if the project is selected home fails, a copy may be unsuccessfully to sell two or three years, in this case the investor will calculate the profit instead of losses. "Increasingly, consumers want to have a house in the village organized a unified concept. Halophytes time architecture in the townships, with each house built in accordance with their own notions of beauty have passed," - say realtors. In addition, the prospective buyer might not like the fact that he would not live in a tidy and completely built-up village and adjacent to the "eternal" Construction site - in fact at the sites without outsourcing the construction of houses can last for many years.

What, where, how much?

Most scarce and needed international commodity market of Moscow region - home economy class. According to the Criminal Code "Zoom", 70% of consumers expect to purchase real estate in this category. Most of the land for such settlements are located on the northeast, southeast and east, in the repartition of the 30-kilometer zone from the Moscow Ring Road, as well as on the west and north-west (up to 60 km from the capital). According to analyst Villagio Estate Roman Popov, the proportion of villages where the buyer has the opportunity to buy land without a contract - no more than 15-20% of the market. Prices are starting from 5-6 thousand dollars per hundred square meters on the east and south-easterly direction and may reach 70 thousand dollars and above on the west.

As described in the Criminal Code on "Zoom", the cost of City center in organized cottage settlements is a leader Novorizhskoe direction (30 thousand dollars per hundred square meters), the second split Minsk and Kaluga highway (20.4 and 20.2 thousand dollars, respectively). Behind them, after some delay should Dmitrovskoe and Kiev highway - to 18 thousand dollars per hundred square meters. The cheapest offer of land on Egorevskoe highway, here the average price is about 1.7 thousand dollars per hundred square meters. The main factor affecting the price of land in the first place is the direction in which lies the village and the remoteness of the site from Moscow. Depending on the category of land also is a correction in prices. Today the cost of land, relating to the land settlements, may be twice the price of agricultural land. It should be noted, and additional communications in the presence of which (electricity, gas, television, water, etc.) the price of land increases. The cost of land in the village depends on the natural characteristics - the absence or presence of water, forest parks, and industrial enterprises.

It should be remembered that the degree of risk in acquiring the land is much higher than the purchase of residential property.

In the course of the transaction should check the purity of the legal documents: a certificate of state registration of ownership or lease, the land survey documents of the case. Necessary to establish the legitimacy of all prior transactions: registration of contracts of sale, gift, inheritance, etc. If you find any violations of the transaction, as well as in the case of a lawsuit by a new owner, the transaction may be declared invalid. According to experts of "Peresvet - Real Estate, high risks accompany the transaction of sale of land of former collective farms or state farms. "Caution must be exercised when purchasing land previously owned by public authorities and had nothing to purpose. Prosecutors may consider that at one time state authorities ordered the land illegally, and the right to challenge the new owners", - said Konstantin Kovalev.

Land Mortgages

Purchase of land has always been considered safe investments. Oh that, that, and the earth does not burn, do not fall into the accident will not be destroyed by a hurricane, it is not stolen and not theft. "Investing in land is very advantageous. You know, my grandfather always said: "Earth - it's gold." You can also cite the words of Mark Twain: "Buy land, it will not do" - talks about the reliability of investment Teoharus Andri Stavrou, director of the Moscow representative of the Cyprus LaikiBank. Therefore, the credit for the purchase of land may seem a very profitable investment, but you can buy land with the help of a mortgage or consumer loan.

Specialized loans for purchase of land will be, borrowers are much cheaper than a consumer loan in cash, as well as in specialized loan interest rate is lower because the bank minimizes risk by collateral. These programs have their advantages: low interest rates, high debt, long-term lending.

The list of documents required for getting a loan - the standard set in the form of a passport and statement of earnings, as well as documents on the ground: copies of passports of the owners of land, copies of certificates of the identification number of owners land, the State act of ownership of land, Review of regulatory monetary valuation of land, issued by a public authority of land, and an excerpt from the State Land Cadastre of absence (presence) restrictions. Some banks may also ask for marriage certificate and a copy of the employment history of the borrower, as well as a document which certifies the payment of land tax for the past 12 months. In addition to the large number of documents will have to pay attention and evaluation.

But at the moment in Russia are not so many banks that provide such loans. Land mortgage offer Savings Bank, Raiffeisenbank, Societe Generale Vostok ", Moscow Credit Bank, and several other banks.

Banks still wary of the existing problem of land mortgages because of inadequate legislation. But the very possibility of credit secured by land for the banks is attractive for its reliability. Land does not wear out over time, as other properties, and its value is constantly increasing.

"In general, for Russia, such a loan product is very promising, but not to Moscow, where there is a transport issue, therefore, the road from home to work will take a long time - answering the question of RBC loan Irina Radchenko, president of the group of companies" Laurel ". - In regions of the same building their own homes as the housing problem could be a way out for many families, so the loans secured by land there will be popular.

Category: Investment Projects | Added by: Дмитрий (21.03.2010)
Views: 328 | Rating: 0.0/0

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