Purchasing Realty Directly from the Developer Before the Construction is Over as a Way of Investment

Realty is a popular investment. The whole idea of this investment is that you buy real estate at a lower price, and later sell it at a higher price. The price will rise when the apartment is turn-key-ready, and when the location of the complex becomes more and more popular. The main goal is to increase the gap between the purchase price and the sales price, because this difference is the clear profit of the investor.

In this case “NovaBudova” policy becomes attractive for investments, because, according to it, one square meter in a building under construction is considerably cheaper than after the construction works are completed. For the developer, the lower price is an investment promotion and attention-getting device, since it allows to establish mutually beneficial and lasting relations with the clients. And for clients, this policy opens up a way of particularly profitable investments into real estate.

“NovaBudova” projects in progress. What are the ways of using them?

In Lviv on Bigova St. we’re working on creating RC “Shchaslyvyi”. There we plan to have three buildings. The first one is completely ready, and the prices of a square meter there reached the open market value. The third building is at the project stage. And as for the second building, it’s approaching the final stage of construction, since it is going to be commissioned in December 2019.

Investor doesn’t not need to wait long for the apartment to be ready; and at the same time the price per square meter is lower (that allows to save money, taking into account the size of the apartments).

How is it advantageous for making profit? There are two main possible ways:

• Purchase an apartment now, while the prices are lower. It’s guaranteed the prices will go up with the time, so later you can sell the apartment and make money on the difference. It’s important that you’ll be able to receive profit without any additional investments, like, for example, making interior finishing.
• Purchase an apartment now, and rent it out later. RC “Shchaslyvyi” is located in a nice neighborhood, the houses itself are an example of modern residential architecture of European quality level.

The first option suggests one-time significant profit, whereas the second one gives an opportunity of getting a source of constant passive income.

What option is better?

When we talk about potential profit, all depends on the goals of the investor. Both options guarantee profitable usage of the realty, and both options are rather effective, each in its own way.

However, there’s one more way to make the most of the deal. According to current Ukrainian legislation, the seller of the apartment has to pay tax. It’s the personal income tax, which stays rather low in Ukraine. And if the seller observes the following two terms, this physical person is exempt from apartment sales tax:

• the owner sells the apartment that has been in his or her possession for three years at least;
• it’s the first real estate item that the physical person is selling during the current year.

In other words, it is possible to buy an apartment from “NovaBudova” company in a house under construction at a below-market price. Then wait for the construction works to be completed, and the house to be commissioned; and lease the apartment for the three folloing years. For that period of time it is possible to get passive income, compensating for part of the investments. And when this period is over, it will be possible to sell the apartment at a far higher price (considering the growth of demand, urbanization, and other factors); and this deal will not be the subject to tax.

So basically one thing remains – to choose the best apartment for investing. And you are welcome to do that by calling us: (067) 663-9718; (067) 663-9734. And you’re more than welcome to come to the Sales Department of the Company at the address: Chaikovskogo St., 26, and Vyacheslav Chornovil Ave, 67 (next to RC “Shchaslyvyi” construction site).