Category Archives: Real Estate

Current News About the Real Estate Market in Cuenca, Ecuador

vReal estate in Ecuador is ranked as some of the best in the world; at least for retired individuals who are looking for property investments abroad. The country is friendly to expats, the prices are affordable, the process is simple and fast and best of all, Ecuador is one of the best countries to retire in. This is one of the reasons why retirees are flocking to this country and starting to buy available properties in Cuenca.

The Cuenca, Ecuador Real Estate Scenario

Before you invest in anything, you have to look at the current situation of the real estate market in Cuenca, Ecuador. We have come across an article that discusses the Ecuador real estate scenario; specifically in the city of Cuenca.

The article revealed the following facts about the real estate market:

    • There are so many unsold properties in Cuenca that new construction could be stalled or delayed; at least, those outside the dozens of construction projects that are already underway.

 

    • The slowdown in real estate sales is attributed to the unforeseen increase in prices in recent years, especially since 2007.

 

    • Ecuadorians who are returning from other countries have fueled the increase in home sales, specifically in the condominium market. This trend is slowing down and this means there will be fewer property investors available. In the last decade these overseas workers have come home or relocated to Cuenca but this trend seems to be slowing down.

 

    • The large inventory in the condominium market is due to the wrong assumption of the builders that the homecoming of Ecuadorians will continue.

 

    • Other causes of the rising cost of homes are the increase in land prices, expensive building materials and labor cost. The land prices in Cuenca have gone up from $50 per meter to $160 per meter. The cost of concrete and steel has risen by more than 150% since 2007. Labor costs have increased due to new government regulations and because of a 40% increase in the minimum wage since 2008.

 

  • New rules that have been imposed regarding funding and permitting could compromise the construction of new homes, especially for small builders.

All of these factors make it difficult for builders to maintain the price of $30,000 to $40,000, which is the usual amount that Cuencanos can afford.

What does this mean for expats wanting to buy real estate in Ecuador?

As much as things are looking depressed in the real estate market in Ecuador, experts are saying that it does not seem like it is leading to the same housing collapse that happened in the US. The article mentioned that although foreigners have reduced their real estate investment by 50%; developers have come up with a new strategy. They will allow buyers to defer 70% of their respective payments to closing; at least this is true for those that are still under construction.

The experts also believe that home prices will not be declining soon and might still continue to rise, but only in the 3% to 4% range. And they are also saying that the government regulations, although affecting the price of homes, are imposed for the protection of the market.

So if you are retired and you wish to invest in Ecuador real estate property, you may want to proceed with caution for now. When inventory is high and the market does not seem like it is interested in buying a home; buyers will be in a better position to negotiate with sellers and property representatives. And if you can afford to buy a property now, it is encouraged that you invest in a rental property. The article mentioned that the rental market is growing; since most people cannot afford to buy new homes.

4 Things That Will Help Fetch the Right Resale Value for Your Property

vSo, you have decided to part with your home. Wondering how to get the best deal that will justify holding it is an investment property until now. Before you put up a notice for sale, or start passing the news to your near and dear, consider the fact that the reality market is some parts of the country has been sluggish.

Hence, it is worthwhile to put in a little bit of effort that will make your property look a lot more attractive to potential buyers. Here are some expert tips that will help enhance the resale value of your home by tens of thousands if not few lakhs.

Pep up the exteriors

As soon as a home is bought, homeowners spend time, money and energy in designing the interiors to their whims and fancy. What they miss to see is that, the exteriors play a major role in creating an impression in the minds of a potential buyer than the interior. It is the exterior that is first seen before they take a walkthrough of the interiors. Hence, pay attention to pepping up your exteriors in equal measure to the interiors to get a better resale value.

Creating additional space

An extra room is fine, but what if it serves no purpose? Moreover, what if that extra room does not fit into the ergonomic layout of the home properly? Instead, think of ways to increase the space inside the home. There are plenty of architect firms with interior designers and vasthu consultants who help altering the physical dimensions of any home to make it appear spacious and airy. A spacious home will fetch a higher resale price than one which boasts about a tiny and ill-fitting extra room.

Setting right minor repairs

Like drops of water that collect together to form a messy puddle, a number of unattended minor repairs can wash away a significant portion of your property’s resale value. A prospective buyer will be more interested in knowing the present physical condition and the expected longevity of the house before making a final decision.

The scene of leaking walls, falling patches and plumbing problems can definitely take a hit on the property’s sale worthiness. Hence, make sure all minor repairs are attended to on a regular basis.

Keep a cushion for price negotiation

Indians are ruthless negotiators. We love to bargain for the best deal in every transaction. Especially when it is about buying a new home expect the negotiation process to be fiercer than what you can imagine. Hence, make sure you price your property with some cushion for reduction during the negotiation process.

You might want to take into consideration the existing market rate of similar properties and how the deals have ended before fixing the price or agreeing to the price offered by the buyer.

The resale value for a property is highly dependent on various factors. Location, floor space, number of rooms and furnishings all play a major role in determining the resale price. However, other factors like well-maintained exteriors, perfectly functioning plumbing and sanitation, additional space for storage, etc. can help further increase the resale value to a higher denomination.

Sparkling Future For Estate Agency

dsvThese days the growth factors have been taking a very vast and quick turn which is entirely leaps and bounds and coping with these immediate changes is something very challenging for the different industries. Every industry has its own setup and this may move according to the demands made and the changes evolving. The technology industry needs a very quick response if a business needs to be in the market for a future intent. However, the property and estate agent industry has now been on a steady position and there are bright chances for it to remain income generating in the future. On the other hand, the internet service providers which used to offer the card system have become extinct.

When it comes to focusing on the real estate business specifically one may expect the brightness of future for a number of reasons a few of these reasons may include the following:

Boom of Residential Spaces

These days at every point what we see is the construction of a new residential space which may be a bungalow or a huge building. The population is increasing day by day and with this the demand of residential properties is also increasing with the same pace. Therefore the future of estate agencies here may prove being a very outstanding one because when it comes to the sales and purchases of these residential spaces there is a major chance of the business of real estate to take a boom. The relation between the real estate and the residential properties is a direct one because people need a home for shelter and real estate may give a perfect deal.

Trend of Shopping Malls

Another very commonly increased concept all over the world is the prevailing concept of shopping malls. Previously people accustomed to run after the differed shops in different corners but with the passage of time these malls are taking very significant place in the lives of every individual. In this regard, the development of malls may leave out numerous shops and stores on individual basis which may need a selling agent and here the role of the real estate is something essential. Many builders may approach different agents for the purpose of either purchasing the individual shops left out or the builders working over the mall projects may move towards real estate agents for huge lands. In every case, the future of the real estate agency is a brighter one.

Why Are UK Property Funds a Good Investment?

davInvestors seek profits on the exceptional housing demand. Fortunately, public and private programmes synergistically encourage home building.

“Everyone needs a home over their head at the end of the day.”

This is what a UK residential property fund manager said in January 2015 to Professional Pensions, a website dedicated to institutional investors who are tasked with achieving the highest returns for their clients.

The fund manager (from M&G UK Residential Property funds) described being involved in the property market with built-to-let properties as well as participating as an investor in the development of new-build homes. The 25-34 age group is a focus of this funder, which means they target properties that are near public transport.

That particular age cohort is indeed important, not because of where they stand in wages but more because they represent pent-up demand. With tight lending in the UK – particularly after the 2008 financial crisis – homebuilders were reluctant to construct new homes at the entry level for first time buyers. In the past decade, this has slowed housing formation altogether or put people into the rental class who would likely be owners under other circumstances (working people who rent now comprise about 19 per cent of the market, up from 11 per cent a decade ago).

Homebuilders and developers are fully aware of this demand, but were waiting on the sidelines because of the difficult financing matter. Today, there are several factors addressing this blockage to building – which have spawned creativity in the private sector as well as from the government:

Help to Buy programme – First time buyers and home movers are provided equity loans on properties with purchase prices up to £600,000. Buyers need to contribute at least 5 per cent of the property price for a deposit while the Government provides a loan up to 20 per cent of the price. The buyer then needs to qualify for a 75 per cent mortgage loan. No loan fees are charged for the 20 per cent Government loan for the first five years of home ownership.

Starter Homes programme – Available at a 20 per cent discount to under-40 buyers, this housing bill is targeted at increasing the UK housing stock by 200,000 residences. All homes will be built on brownfield (previous use) land. It is favourable to self-builders and smaller home construction companies with reduced bureaucracy and a streamlined neighbourhood planning process.

Property fund management of strategic land – From an investor’s perspective, this is a way to help increase the country’s housing stock while achieving asset growth. their skills are in designing homes, building and then selling them. With increasing frequency, they are able to buy lots on streets that have utilities installed and planning approvals already cleared, thanks to the work of developer-investors. The investors, typically working in joint venture partnerships, identify where homes are needed most and find land that can increase in value if allowed a use designation change by the local council. Once that is accomplished, they sell lots to builders.

Crowdfunding – Start-up investment companies are launching a global stock exchange for residential properties in the UK and possibly abroad. Launched in early 2015, Property Partner has properties in London and the South East where more than 1,000 investors have invested as little as £50 on up to £50,000 in homes, hoping to receive rental income and possibly capital growth. The shares are highly liquid and can be traded via a one-off transaction fee of 2 per cent. An additional 12.5 per cent fee is charged for advertising, letting and managing the property.

It took an improving economy to convince investors that the homebuyers and home renters were ready to jump out of their parents’ flats and into their own homes. Government programmes have had a measurable impact, but entrepreneurial thinking on the part of strategic land partnerships and others has made the private sector a good partner. With a shortage of one million homes, it will take a decade or longer to bring supply up to demand.

Investors should always be versed in the risks of their positions. Consulting with an independent financial advisor can help identify tolerable risk, particularly in relation to other wealth development goals.

 

This Housing Bubble Is Set to Pop

dvFor generations, it was always a good bet to invest in a place Americans call home. Housing had almost always increased in value, and you received a multiple of whatever you invested into it in your total return.

Until 2008 that is.

That’s when home prices tanked and our economy entered a recession, leaving people like you and me holding the proverbial paper bag when it comes to overpriced and overleveraged mortgages.

Since then, the root cause of the housing bubble has remained in place – easy-money policies by the Federal Reserve to fuel lending. It has led to another housing bubble.

One that is set to burst sooner than most are anticipating.

Since 2009, the Fed has pinned interest rates near zero in an attempt to prop up our aging, lackluster economy.

With a sub-2% GDP growth rate, it’s hard to believe that this has been a success.

But the easy-money policies have propped up aspects of the market, just not in the pockets of the everyday American. Instead, it has bloated the pockets of Wall Street and investors.

Had someone told you in 2006, 2007 or even most of 2008 to sell your home, you likely would have ignored them. Not many people on Main Street noticed the lending practices going on behind the scenes and understood the extent of the bubble that was in place.

But hindsight is always 20/20.

The problem now is spotting similar bubbles going forward.

I’ll be the first to say that timing the week, month or even year that a bubble will pop is extremely difficult. But that doesn’t mean you can’t notice when that day is near, and for housing it may be just around the corner.

The Truth About the Housing Bubble

There is a substantial divergence as we approach 2015. Prices have climbed about 50% since 2000 and rebounded strongly from the bottom in 2010 to 2011. But existing home sales – the amount of homes actually sold – have lagged and are up just 5% since 2000.

Median prices have topped their bubbled peaks set in 2005, but this time, the amount of homes sold is 30% less.

That means we are seeing prices set new highs as fewer buyers are in the market.

The rationale is that housing currently has a tight supply, meaning there aren’t enough homes to meet the amount of potential buyers. That may be the case to some extent. But right now, homes that are either in foreclosure, bank-owned or completely vacant are near all-time highs.

Clearly there is more going on here than just a lack of supply. The reality is that many buyers are investors, buying properties and sitting on them. This crimps supply, which helps raise prices.

Back in 2008, you could have heard the same story. The goal was to flip houses, or own a few of them to rent out. We are seeing these actions roaring back today.

And if supply was so tight, buyers would simply build new homes, but those numbers are no better than the existing home sales.

There’s a big discrepancy from new homes sold versus the price these homes are fetching – and this is supply that is practically infinite as we can always build a new home.

Something’s got to give, and it’s going to happen soon.

Fed-Fueled Crash

I see one of two scenarios at play. Which one do you think will ring true?

  • Homebuyers continue to fork over more dollars to buy properties while we sit with stagnant wage growth, stagnant economic growth and low-wage jobs being about all that’s created.
  • We are on the edge of a bubble larger than the one we experienced less than a decade ago as housing prices race back down to where it is affordable and sees demand from new buyers.

The Federal Reserve is held accountable for this fiasco. If it goes forward with a rate increase in the near future, it will be us who pay the price of another bubble.

There’s only one action to take if you ask me – lower your exposure to the industry.

In stocks, that’s homebuilders and mortgage originators. Avoid them at all costs. In your personal investments, that’s being prepared for another real estate shock.

These prices are unsustainable and due for a correction.

Once that happens, opportunity awaits you to pick up houses and housing-related stocks on the cheap.

Why Is Bangalore a Favorite Realty Destination

sdvThe Bangalore real estate market is one of the most promising real estate markets in the country. IT companies have played a major role in the growth of the real estate market.

The city is one of the most livable cities with good physical and social infrastructure facilities, best educational institutions, famous hospitals, shopping malls, retail outlets, nightlife, etc. The city with all these facilities and attractive climate have attracted a number of people. The residential market has seen excellent growth over time. Many micro markets are known for the residential purpose and few promising and attractive markets include, Sarjapur Road, Whitefield, Outer Ring Road (ORR) and North Bangalore.

Sarjapur Road:

The micro market is located in the South-East of the city. The area is connected to the prime IT hubs like Electronic City, Whitefield and Marathahalli. The area is known for the international schools and reputed colleges. The area has various options for shopping like malls and stand-alone retail outlets of international brands. The micro market enjoys a good hospitality sector and good healthcare facilities. The locality is favorite among the IT/ITes employees as it is well connected to the IT regions. The locality is known for affordable housing. The micro market also has villas and row houses. If you are looking for villas in Bangalore for sale, then you can consider this locality. The locality has good growth potential and is expected to give good returns over the years. Infrastructure projects like the proposed Central Silk Board – Hebbal line metro will benefit this area as this will link the locality. The commercial market in the area is very active and Infosys is coming up with a large campus on Sarjapur Road.

Whitefield:

Surrounded by important micro markets like Mahadevapura, Marathahalli, Bellandur and Krishnaraja Puram. Whitefield is one of the most sought after residential locality after the invention of the IT sector in the area. The locality is seeing demand for the high-end residential apartments and for the villa projects. The area is seeing good demand for the mid-income housing and the demand is mainly driven by the IT population. The micro market enjoys good social infrastructure and the locality is seeing good developments in physical infrastructure as well. This is one of the major reason which is pushing the demand for the luxury projects. Infrastructure developments like the proposed roads, proposed phase II of the metro rail, etc. further boost the realty value of the region. The area is also seeing developments in the commercial market of the locality with the proposed malls like Virginia mall, Embassy mall, etc.

Rent or Buy? Which Option Makes Sense for You

dfIf you are the individual who is weighing the option of buying or renting a house, you need to consider a few factors. Your financial situation has to be assessed for your long-term planning and that it is not that simple as well.

Understanding your house budget and expenses

It is wise to review your household budget in comparison to the expenses before you begin looking for a new house. You have to find out how much can you afford to pay for accommodation without putting a burden on the budget.

You simply cannot go for rent or mortgage payments if you are unable to pay them on time. Several factors are involved both for renting or buying that should be considered prior to making a decision.

What are the requirements while renting or buying a house?

Your credit history and credit score are crucial and that they will be looked upon by the rental agency or the landlords for the mortgage or rent. You will be checked whether you are can pay the bills on time and are not overdue with the loans or the credit card balances. You have to check your score and credit history before applying for the apartment or the mortgage.

Other factors that are important include your strong employment history, W-2 forms and current bank statements that have to depict a good picture. A few rental agencies require professional or personal references as well as background check and contact information from the previous landlord respectively.

When is renting a viable option?

If you have uncertain employment: According to Evelyn Zohlen (financial planner), if you are unsure about your living paycheck and job situation, it is best to save money for the future living expenses. This will help you to build an emergency fund for you as well.

Limited funds: Renting is the better alternative when you do not have enough money for making the down payment or for managing the additional costs of owning the house.

Short time frame: If you have an assignment that lasts two years or you plan to move abroad in a couple of years, then renting a house is a better option.

When is purchasing a house a feasible option?

Buying a house only makes sense when you have the ability to cover the additional costs for owning a house. It is vital that you pay the closing costs and the down payment before you buy a house. It is seen that many banks receive a 20 percent down payment. This means for a house that costs 250,000 dollars, at 20 percent the down payment will be 50,000 dollars. So, the total amount includes percent in commission and another one percent in closing cost as well.

 

The Next Real Estate Collapse

bAs daily commutes go, I have nothing to complain about when I point my car toward Sovereign HQ each morning. The traffic congestion on Interstate 95, South Florida’s main artery, is horrendous. So I take the scenic route, the coastal beach road known as A1A.

The views of the Atlantic Ocean are nice. But more recently, I enjoy the drive for a different reason. It’s a ringside seat to the extravagance of the now-deflating luxury housing bubble I warned about three months ago. Recent data point more ominously to a serious problem in this sector.

Each day, my drive on A1A takes me past what is the single most expensive new home for sale in the United States: Le Palais Royal, under construction for the last five years.

Situated on 4.4 acres of beachfront, the “spec mansion” features the Atlantic Ocean as its backyard. The front yard is a nearly 500-foot deep-water expanse of the Intracoastal Waterway – perfect for even the largest private super yacht.

The mansion’s soaring front gates, accented in 22-karat gold leaf, make it sort of hard to miss as you drive by. Just beyond the gates is a 60,000 square foot home with 11 bedrooms, 17 bathrooms, an 18-seat IMAX home theater (with its 50-foot-wide screen), and a 30-car subterranean garage. The building plans call for a second phase on the vacant beachfront lot next door. That’s where the ice-skating rink, go-cart track, bowling alley and private nightclub are supposed to go.

And it can all be yours for just $159 million.

But the tide of money fueling the purchase of luxury homes, big or small, is receding as we speak.

Luxury Homes: The Next Real Estate Collapse?

Largely ignored in the holiday rush was the news that luxury home prices fell 2.2% during the third quarter – the first such decline in nearly four years.

According to the Redfin real estate brokerage, wealthy clients are stepping back out of fear from stock market volatility, and are worrying about tying up too much of their wealth in non-liquid assets, especially if another real estate collapse appears.

The decline is even more notable because luxury homes serve as something of a bellwether for the rest of the “non-lux” real estate market (which still rose just under 4% for the same period).

The original housing-bubble stocks of a decade ago might offer a clue on the timing. Shares of Toll Brothers (NYSE: TOL), the nation’s largest builder of luxury homes, peaked in July of 2005 before starting their precipitous decline. But the stock prices of builders focused on the low- and mid-priced ends of the market stayed strong – at least at first. For instance, the shares of Lennar Brothers (NYSE: LEN), one of the biggest homebuilders in the country, didn’t crack until April of 2006.

Interestingly, Toll Brothers’ shares today are down nearly 25% from their post-recovery highs (to the lowest price in 13 months), while Lennar shares are just starting to break down.

California Dreamin’?

Chinese buyers have been key players in the run-up of America’s luxury home prices. And their influence is felt most strongly in California and the San Francisco Bay area, the hottest of America’s real estate markets this go-round.

Not coincidentally, it appears Chinese buyers may now be pulling back there as well, possibly ushering in the next real estate collapse. Home sales in California fell 20.5% in November – more than twice the monthly average (it’s traditionally a weak month prior to the end of year holidays). October’s home sales also fell a little over 5%, while dropping 1.5% in September.

For now, the real estate community appears to be dismissing the collapse of sales as the result of changes in new loan disclosure rules by the Consumer Financial Protection Bureau, and what is usually a softer seasonal period for home sales anyway.

I don’t blame them. As a media consultant once told me back in my reporting days, “Never let too many facts get in the way of a good story.”

But the “Chinese buyers” real estate gravy train is grinding to a halt fast. Last summer’s 40% decline in the Shanghai Composite Index should have been the first clue. The second was the relentlessly positive “it’s just temporary” narrative spun by so many brokers and property developers who don’t want the ride to end. The third clue may be upon us here at the start of 2016 as the Shanghai index lurches lower yet again.

So what’s it all mean to you?

As Jeff Opdyke has warned, don’t get comfortable with the Federal Reserve’s spin on things. As Chinese buyers retreat from American real estate, it kicks out yet another leg of support for the U.S. economy.

 

The Chill in US Real Estate

svYou know things are starting to get dicey out there when even a multimillion-dollar penthouse in Manhattan can’t sell.

It seems a developer in SoHo, having just recently finished primary construction for his high-rise condo tower, realized the project’s focal point – a $45 million, 8,400-square-foot penthouse – was just a bit too much.

“The air is very thin up there in that buyer pool,” was the way the builder, Kevin Maloney, put it to Bloomberg.

You’ll love the Solomon-esque solution Maloney came up with.

The penthouse has a wonderfully grandiose name: the Summit of SoHo.

Sure, it has its own indoor pool. And yes, it has 23-foot living room ceilings. Plus, it has not one but two private elevators. One goes to the lobby; the other is so you don’t have to take the stairs to the penthouse’s upper levels (for entertaining, a spa and a rooftop kitchen and grill).

But the stock market cracked hard at the start of the year, with the S&P 500 down 11% at its lowest point in 2016, while Hong Kong’s Hang Seng dropped roughly 17%. In recent months, Chinese real estate buyers pulled a disappearing act from realtor offices all around the U.S. And after years of ultra low interest rates and easy lending policies, there’s now an excess of iconic luxury living quarters on the island of Manhattan.

The developer’s solution? Chop his project’s expansive space into two smaller penthouses – an $11 million, 3,000-square-foot unit (though at that size, it hardly seems big enough for one’s collection of bespoke suits), and a second, 5,400-square-foot unit for a comparatively cheap $29.5 million.

I’ll keep an eye on it and let you know if either gets a sale or not.

Red Hot Real Estate No More

These days, even the bond rating agencies, ever late to calling the turns in any market, are jumping on board…

Fitch Ratings noted last month that home prices in San Francisco have “risen to a level unsupportable by area income.” According to Fitch, that makes the local market overvalued by around 16% – which probably means that you’d need to double that figure to estimate a true “fair value” for this once white-hot luxury market.

Just in the last few days, the National Association of Realtors noted weakening demand among foreign buyers, blaming a strong dollar and rising U.S. home prices for pushing U.S. real estate beyond the bounds of affordability even for rich foreigners.

The crash of China’s Shanghai Composite stock index (down nearly 22% just since the start of 2016 with nary a bounce) forced many of the country’s wealthy elites to pull back on their property purchases. You can see the impact in regional news headlines around the country:

In San Francisco: “At High End, SF’s Housing Market Finally Cooling Off.”

From The Boston Globe: “High-end housing market cooling off.”

In Fort Lauderdale: “South Florida condo market cooling off.”

Will it get worse for premium real estate? I think we’re still in the early innings.

Uncle Sam’s War on Cash (Property Buyers)

The story didn’t get much media play back in January, but that’s when the U.S. Treasury Department and its Financial Crimes Enforcement Network (FinCEN) announced the issuance of “Geographic Targeting Orders” for New York City and Miami.

The “GTOs,” according to FinCEN’s press release, require “certain U.S. title insurance companies to identify the natural persons behind companies used to pay ‘all cash’ for high-end residential real estate.”

Basically, the folks at the Treasury are worried whether corrupt foreign officials or “transnational criminals” might be laundering piles of dirty money through these multimillion-dollar property purchases.

Or is Uncle Sam just worried about the flood of Chinese cash into the American real estate market? “All cash” is practically a synonym for rich Chinese property buyers.

At least, that used to be the case. As we’ve seen in the “cooling off” headlines around the country, the absence of this class of real estate purchaser is starting to be felt in markets around the country.

An article in The New York Times late last year really brings the impact of Chinese property buyers into focus. When it comes to purchasing a home in America, they pay an average price of $831,000 – nearly double what international buyers from India ($460,000), Britain ($455,000) and Canada ($380,000) pay for their homes in the U.S.

In coming quarters, I believe the FinCEN “targeting orders” will likely spell the end of the property-speculation craze among Chinese buyers. The government action may only be limited to New York City and Miami, but it will have a deep chilling effect everywhere. After all, it only takes another press release from FinCEN to announce an expansion into other American cities of its inquiry into the identities of those big-money, anonymous all-cash property buyers.

The trend will take time, with the data trickling onto economists’ spreadsheets. But as Chinese elites continue to pull back from American real estate, well, get ready for a “Wile E. Coyote” moment in high-end luxury home prices – and more pressure on the Federal Reserve to reverse its stance on interest rates.

Should You Buy a Ready Possession Flat or Get a Home Constructed?

sLiving in your own flat or house provides you with the great feeling of security, independence and happiness. The ultimate dream of everyone is to own a place to live. When a person starts to earn, the first thing that comes into his mind is to own a house and starts to save a lot towards this purpose. When it comes to own a house, you have got two options, buy a ready possession flat for sale or buy your own land and build a house in it. Both these ideas have their own advantages and disadvantages. Let’s analyse some of them to decide between these two great options to own a living space for ourselves.

Building Your Own House

Every person has a dream to construct a house that suits to the needs and requirements of the family members. It gets fulfilled when you plan and construct a house for you. Here, your liking and preferences of interior decoration, a color of paint, types of tiles and marbles and a lot of other features of the house give preference. You can choose between costly and cheap materials of construction. You can supervise the laborers and technicians who work to construct your house. Meanwhile, you can save a lot of money. Again, you can construct your house part by part. It is not necessary for you to construct it at a stretch. You can complete the work as and when you have money. Hence, your house becomes a fulfillment of your wishes and dreams. At the same time, there are a lot of disadvantages too. Constructing a house by you takes away a lot of your time and energy. If your knowledge in the construction field is limited, you may make mistakes in choosing the right materials and laborers for the construction. These days labour is not easily available. In the case of a sudden financial crunch, your dream to construct your dream house may not get fulfilled.

Buy a Flat

When you buy ready possession flats for sale, you have a lot of advantages. The most appealing benefit of buying a flat is that you can move as soon as you complete the buying formalities. There are no worries and hurries of construction. You become the owner of a beautiful home overnight. Your confidence and self-esteem will shoot up and you will achieve the status of being the proud owner of a flat. When you choose a ready to possession flat for sale, you choose to live in a highly developed are in your society. The disadvantage of buying a flat is that you have to find a large amount of money to buy it. There are also options to meet these financial requirements. The quality of construction also may worry you a lot.