How to find out if it is worth investing in real estate under construction?

Before investing in real estate, you should find out if there were long-term construction or unfinished objects in the developer’s biography? Are there official documents required for the construction, is the land for the construction of a residential facility considered legal?

Perhaps the newly built house is located in a wild field, and around the pits for endless construction. It is unlikely that real estate in such a place will be comfortable for life, and it is not known what the return on investment will be.

Invest in smart housing

For several years now, the citizens of the former post-Soviet space have been in special demand; one of the most popular ways of investing has been in studio apartments. Small studio apartments can be bought for living or for rent.

Such real estate investments are considered stable passive income. Such investments are relatively safe for the investor.

Many potential investors sometimes do not know what a studio apartment is. Wikipedia reports that a studio apartment is an apartment with no walls between the kitchen and living rooms or a room. This architectural type of space planning emerged in the revolutionary 20s of the twentieth century.

Advanced young people find it fashionable to live in an artistic, smart space, open, without walls, with renovations and light high-tech furniture. It is convenient to have parties in a studio apartment; they are often selected for rent.

It is believed that investment in a studio apartment is preferred by young careerists. Such housing is often rented or bought.

Typically, studio apartments are small in size, up to 20 square meters. The cost of such objects is much cheaper than the price of full-length one-room apartments by about 10-25%.

However, the owners of a studio apartment can receive the same money from the tenant if they rented out a full-length one-room apartment. The yield from a studio apartment is great. The cost of purchasing and renovating a studio apartment is low.

Small studio apartments are also called smart apartments. But there are also huge studio apartments, one hundred square meters or more.

Artistic, smart housing, similar to an artist’s workshop, is convenient for one person’s life. But as soon as a family with a child settles in such a studio, life in an open space becomes unbearable due to the inability to retire and the constant noise.

Recently, small studio apartments have been purchased for single pensioners who need their own corner. Investment experts believe that the demand for such studio apartments will soon pass.

Why Buy Smart Home

The money spent on buying a small-sized smart apartment can be an excellent anti-crisis investment measure. In order to make good money, it is better to acquire two smart apartments, which are equal to the cost of one full-length one-room apartment.

With such investments, the expenses of the depositors are paid off faster. You can rent out a smart apartment at the cost of a one-room apartment.

Payment for utilities in a smart apartment will be less than the price of utility bills for a one-room apartment.

But it is important to remember that if smart housing belongs to a non-residential fund, tariff payments will be the same as the cost of utility bills for a one-room apartment.

If the smart apartment is part of the housing stock of the real estate, the utility bills will be significantly less than the utility bills of a standard one-room apartment.