Apartments Ready for Occupancy VS. Apartments Under Construction
Choosing between a movie-in-ready apartment and an under-construction apartment is one of the most important decisions you'll have to make when purchasing real estate. Both options have advantages and challenges - finances, time, risk, personal preferences, etc. - all these factors play a significant role in the decision-making process, and it's necessary to analyze each of them carefully.
In the article below, we will discuss the advantages of each option to make your preparations for an apartment purchase as easy as possible for you.
Advantages of Buying an Apartment Ready for Occupancy
Buying an apartment ready for occupancy is a popular choice among buyers for whom time, comfort, stability, and risk minimization are decisive factors.
Firstly, such an apartment allows moving in within the shortest time frame. For those who immediately need a place to live or plan to get a return on their investment as soon as possible, this is a much more convenient option than waiting for construction to be completed.
Secondly, the buyer knows exactly what they're getting. They can inspect the apartment's appearance, condition, and quality, knowing nothing is going to change anytime soon. It's also easier to realistically perceive the space in an apartment when construction’s been completed. There's less risk of encountering unforeseen problems. However, you should remember that there are checks you’ll need to conduct after finalizing the purchase, such as electrical wiring and plumbing.
The advantages of buying an apartment in a finished complex include knowing in advance what the building itself and the surrounding environment - parking, yard, leisure areas, and the general atmosphere of the neighborhood - look like.
Last but not least, there’s a financial factor to consider. From a financial perspective, buying an apartment ready for occupancy may be simpler. For example, it might be easier to get a mortgage as banks consider these apartments less risky (although mortgage risk assessment is a complex issue, and the bank relies on many more details than just the apartment completion status). Additionally, if you're buying the property for investment purposes, you can immediately start generating returns by renting it out.
Many buyers choose to purchase white frame apartments. They’re seen as an optimal compromise between an under-construction project and fully furnished apartments. Typically, a white frame is not considered ready for immediate occupancy - at the very least, it needs painting, furnishing, and basic tech. However, it allows the buyer to arrange the interior space according to their taste and needs. And, of course, cosmetic work takes less time to complete than building construction.
Advantages of Buying an Apartment Under Construction
An apartment under construction is the preferred choice among buyers who prioritize affordable prices, modern standards of comfort, and the potential for high investment returns.
The price, of course, is often the decisive factor. Developers know this well and often offer potential buyers incentive prices and payment terms (such as low down payments and/or interest-free installments) at the initial construction stage. This helps them attract investments while the buyer can afford to purchase an apartment in a better project/location.
The financial factor is important in the long-term context, too. If a potential client is not in a hurry to move into a new apartment, buying real estate at an early construction stage can be more profitable. Firstly, the price of move-in ready apartments automatically increases due to several factors we've already discussed. Secondly, since the dynamics of real estate prices are positive from year to year, the project price increases as construction progresses. The price difference between an apartment bought at an early stage and the same apartment 4 years later could be even more significant than the difference between an under-construction and a move-in apartment today.
We should not overlook the safety factor either. Many buyers prefer projects under construction simply because they believe modern standards - including construction reliability, safety, energy efficiency, etc. - are better than they used to be even a few years ago. Such a buyer prefers to purchase an apartment under construction to feel more secure in the future. Additionally, they hope the space will be more environmentally friendly and economical in the long run.
However, even modern apartments under construction come with risks. In most cases, a potential client won’t be able to assess the final quality and condition for years. Finding a reliable construction company that will transparently provide all the information, from the construction materials to the project plan, is critically important.
Investing in Apartments Ready for Occupancy VS. Apartments Under Construction
If you're considering purchasing real estate specifically for investment purposes, you may need to prioritize factors secondary for those seeking stable housing.
For example, you'll definitely need to pay attention to how well the project neighborhood fits your investment goals. Generally, rapidly growing neighborhoods and tourist centers are considered best for investment. That said, if you plan to rent to long-term residents, there may be better options than a tourist center, while the commercial spaces are the other way around and are generally the most profitable in these areas. In any case, such an investment requires thorough research into market trends.
You should also consider how long you can wait before getting returns on your investment. Not everyone will have the opportunity to wait 4-7 years for a project completion. Those with a limited timeframe would be better off making a larger upfront investment to start seeing ROI ASAP. Those banking on more long-term profits will potentially see a larger benefit if they wait and purchase an apartment in a project under construction.
If you're looking for high-quality apartments under construction in Batumi for investment, with comfortable, secure infrastructure and modern, refined design - check out OKTO GROUP. There's a wide choice of studio-type apartments and apartments with separate bedrooms in an elite residential complex under construction on Batumi's new boulevard, 500 meters from the sea. If you're considering investing in Batumi real estate, you've got a good chance of finding what you're looking for here.
