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INTERESTING ARTICLES › The purchase of properties “from the well” as a way of getting bigger profit
The purchase of properties “from the well” as a way of getting bigger profit

Thanks to the peak of the construction in the last years, the business of acquiring properties from "the well" has become an excellent option with high profitability, and at the same time an efficient financing instrument for the sector.

Indeed, the flow of activity of the construction is reaching record levels, and it is not by chance. To the advantages obtained soon after the modification of the exchange rate from the fall of the convertibility, it has been added the affluence of local as well as foreign investments lately, in search of an alternative because of the low levels of profitability of the capital in other fields and activities.

In this way, for the investor, the acquisition of properties at the beginning of the construction and the later resale before or after its end, mean an investment of relative short term and very high profitability.

The earnings are really important if the investor knows how to move or he has a good advisor. Let's see an example: if a finished apartment would sell according to the market value in u$s 150.000, it is possible to acquire it in the well in u$s 120.000, making a difference in 12 months of u$s 30.000, equivalent to 25% yearly. Nevertheless, if the investor resells the same property before finishing the apartment, let's say in u$s 135.000, he will have gained u$s 15.000 having only invested the portion that it is common in these cases, and that it will surely be about 50%: u$s 60.000. This gain of u$s 15.000 that seems identical to the previous case (25%), it can take place 6 months after the beginning of the business, so the profitability projected yearly can reach 50%.

The great majority of the constructive projects is selling at the moment in this way that – also -, constitutes one of its main financing axes and of reduction of risks.

In this way, the two faces of the business benefit and complement each other, linking as parts of the same machine.

The keys of the business will have to be found in the election of the land as well as in the addition of marks and participants that generate the necessary trust in the investors. In this way, to a good location it will be necessary to add an attractive project with a well defined target, architects and experienced constructors, and reliable developers and traders.

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