Property Under Construction

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property under construction Jan 19, 2014
Hello!

Our business idea is to buy residential real estate (apartments in the Moscow region from reliable developers such SU-155 , PIK Group ... ) under construction for 1-1.5 years before its completion and then sell it. Annual Yield is about 20 % which is higher than the average rate on deposits of leading banks at the moment is almost 2 times , twice as high as inflation (if we measure price change of fuel and the depreciation of the ruble against the $) .

To do this, we want to create an investment company that will attract customer funds and invest them in such buildings. For customers this is interesting because with 100 thousand rubles (about $3000) nobody thinks that can participate in the growth rates of construction (after deduction of fees and taxes client will receive on hands more than from deposit or bond), low level of promotion of such products, as well as service - company will operate from one office ( the example of TCS Bank- Capital One model in US ) , the contract will be delivered by courier , and they can be signed in the subsidiary of the partners ( Vimpelcom, Euroset , Mail of Russia ... ) . All functions are carried on outsourcing, avoiding a large staff ( courier service, tax / accounting, call center) . Full control of costs: small number of workers, no necessity for expensive office (theese are competitive advantages of our company as well as new technologies, service, wish and opportunity to be one of the best on this market; external factors: the promotion of such products is low , low- competition in Russia, low level of service). Remuneration of the company- 2 % of the capital - management fee and 15-20 % - the award of capital gains. In the future it is possible for company to offer new service- asset management, direct investment in non-public companies, developing companies with franchise programms from world-wide companies and etc...(also be certified of GIPS). First time major spending are advertising , creating of team- all this cost about 3- 4 million rubles ($100000-130000). Payback period of around 2 years , possibly earlier , it all depends on the flow of customers.


Risks: buying a flat under cinstruction is regulated by 214-Federal Law- provides your investment right on real asset and gives guarantee, including in the event of bankruptcy . The law obliges the developer to insure its responsibility to equity holders in one of three proposed methods : make it through the insurance company , get a bank guarantee in the amount of borrowed funds or enter into Mutual Insurance Society . Also for 0.7-4.5 % of the purchase price we can insure asset against problems with construction. All in all risks of creating such company is high because it is new and it needs time for growth, but we believe in the potential of such market due to realability of assets and developing character of Russia market.

We have business plan and calculations . If you are interested, please write.
Thank you for your attention.

Anton.

Anton911
UAE, Dubai Forum starter
Posts: 1
Location: Moscow RU

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