Buying an apartment at the initial stage of building construction carries significant risks
The construction of a building can last for several years. This is a difficult and expensive process involving many people and companies. It is almost impossible to foresee all the difficulties that a construction company may face, especially when it comes to Ukrainian realities.
Start of sales at the excavation stage
Before starting construction, the developer must go through three main stages:
Obtaining a title document for the land plot for building the house. The construction company buys it or leases it from the city authorities.
Then it is necessary to prepare the project and obtain approval from experts.
Only after that do they obtain a construction permit and submit documentation to the State Supervision, which controls the process of erecting the capital facility.
Ukrainian legislation allows construction companies to start selling housing at the initial stage of construction. Sales begin as soon as the foundation appears on the site of the planned house. At this stage, the price is the lowest, but the risk of investing in a long-term construction is extremely high. Of course, investors are torn between the desire to buy an apartment cheaper and doubts about getting into trouble.
When to buy – possible options
The choice of one or another purchase option depends on various factors. If the investor has limited funds but no time constraints, they can slowly choose a safe option at the initial stage of construction and watch over several years as the walls of the future home rise. If housing is needed immediately, they have to invest the full cost for a finished property. Today, you can find the optimal option at any stage of construction on the website DOM.RIA.COM. It has a solid database of new buildings, among which it is easy to choose the apartment of your dreams.
Advantages and disadvantages of buying an apartment at early stages of construction
One of the main advantages of buying a home at the excavation stage is the ability to choose from a large number of apartments of different sizes and layouts. Buyers also have the opportunity to choose the floor they would like to live on. At later stages of construction, the number of available apartments will decrease, and those Ukrainians who come later are forced to settle for less favorable options, and at the highest price.
However, buying an apartment at early stages has its disadvantages:
The likelihood that the house will not be built, and the invested money will be lost or depreciated.
Construction may also drag on for a long time.
Many buyers have to wait for moving into their own apartment not two or three years, as initially expected, but five or more years.
But this is not the worst option. An investor's worst nightmare is the transformation of a new building into a long-term construction. The chances of such a development cannot be completely avoided, but they can be reduced to zero by carefully choosing the construction company. To prevent the bitter fate of deceived buyers, before signing the DDU, it is necessary to thoroughly study the developer's history, visit their office, go to investor forums where you can get any necessary information, and even talk to residents of already completed buildings.
DDU at later stages of construction
Due to uncertainty, some buyers prefer to sign contracts with the construction company at later stages of construction, when the contours of the future building are clearly visible and you can personally observe the construction process. When the most difficult and expensive stages have been passed, the likelihood that construction will stop becomes lower, but it can never be completely ruled out until the house is put into operation.
But a high degree of readiness increases the likelihood that the court will authorize the completion of the house by another developer. They will still have to pay extra to complete the construction, but the amounts will be relatively small, and the chance that the house will still be completed is quite high. If construction stops at early stages, this makes the project's prospects very uncertain. In addition, state authorities may not issue a permit for the commissioning of an already completed house due to the presence of unfinished work and violations.
As we can see, an apartment can be bought at different stages of building construction, it all depends on what the potential buyer wants – to take a risk and buy an apartment at a minimal price or pay more but sleep peacefully, knowing that they will get the desired apartment any day now. Combining a low price with a high degree of readiness of the house will not work – you will have to choose one or look for a golden mean.
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