The Value of Experience In the sector the different legal formats. What to look for before signing a contract and giving start to an investment.
When an individual, a family or a small investor projects a real estate business, the question immediately arises of what to take into account and how to know if the developer in charge of the project is reliable. The first answer to this question is the experience in the business, that is, the commercial background of the real estate developer in charge of the project. “It is essential to know who he is and how he has behaved in the past,”
As in any business, in real estate investment this factor is the determining point in the profitability and performance that a home can achieve.
With a good location, the real estate developments in Playa del Carmen achieve an important competitive advantage, image and presence. They can offer their inhabitants the opportunity to enjoy the encounter between two worlds.
Currently, the most ambitious real estate projects complement the space with attractive amenities such as a pool area, gym, sky bar, business center, courts, green areas, sunbathing areas, warehouses, security systems, covered parking, concierges, among many others.
In addition to increasing the value of the property, these extra areas also raise the quality of life of its inhabitants, since they are aimed at a demanding segment. The buyers, in turn, acquire areas that will enrich their investments and by which they may increase their costs when selling or renting their property, if they require it.
- When measuring the profitability of the project, one must also be cautious.
- You have to be clear that when an investor enters a real estate development at cost he does not have a fixed price and what they are giving him is a payment schedule with possible adjustments. Therefore, it will be important to know how the price adjustments required by the work will be made, if increasing the number of installments and extending the execution period, or increasing the periodic disbursements of the participants and respecting the delivery deadlines. There is no better format than the other, everything depends on the economic conditions and the destination for the work that each investor has.
The economic protection:
There are two formats with which real estate developments are financed. In the most traditional the developer sells purchase tickets for a project and when the work is concreted with the funds that were integrated by those sales, each investor can write the property in his name. While this format was widely used in the past, today there are other systems. In this traditional business scheme, the property is owned by the developer until delivery and writing, which means that the work in which we invest and from which we have a purchase ticket may have to respond to a financial, economic or judicial problem of the developer to be part of its heritage. Talking about the real estate industry you might have heard about A Toronto based real estate developer from has broken ground, he is working on The One which will be the tallest residential and retail tower in Canada, slated to be 308 meters tall and 85 stories high.