Proven tips on how to choose the right developer and not to go bankrupt
Recently we wrote about an apartment purchase directly from the developer through a mortgage with equity participation. For many people, this option is the most optimal and profitable, as in this case, residential property is purchased for a lower price at the stage of construction of the house.
However, before getting a mortgage you need to solve a number of problems. For example, it is important to know how to choose a developer. Such that just passed the project, and not turned out to be another fraud. Let’s understand how not to make a mistake in choosing a developer.
How to choose a developer: step-by-step instructions
Since you plan to spend a large amount of money, you need to understand whom you will give it to. So first you need to learn all about the developer. Read the history of the company, see what they write about it on the Internet. Might have been conflict situations in the construction of the previous objects. It’s great if you can find reviews of real home buyers from your chosen developer.
Thus, you will delete unscrupulous developers from your list.
Next, it is important to take a sober approach to assessing the cost of the apartment. Too cheap housing or something that sells at a big discount is a signal. As a rule, companies wishing to receive money from the client as soon as possible come out with such offers.
It is also worth paying special attention to the issue of documents for the apartment and policy of the developer. You should be able to read all the documents. If there is no such possibility, then it is better not to cooperate with such a company. An honest developer has nothing to hide and he will not disagree with your desire to delve into the legal details that interest you.
By the way, at this stage of buying an apartment, you can think about a mortgage with equity participation. When it is issued, all documents are controlled by government agencies and the bank, so the guarantees are higher here.
Another factor in the reliability of the developer is the presence of strong partners. For example, foreign construction companies, banks, investment funds. They only work with trusted firms.
As you can see, the choice of the developer is a complex and responsible process. But the cost of failure is large. Trusting wrong people, you run the risk of not only losing money but also to remain without an apartment.