Going Residential
When you ’ ve got your eye on an apartment , doing your homework is simply a must
Real estate investment has made a comeback in a big way – with new products , new international players and intriguing prospects . Looking at the residential side , for instance , it is easy to see that the current strong housing demand – together with abundant supply of capital – are pushing for a significant increase in the supply of rental residential dwellings .
A ccording to the Confederation of
Finnish Construction Industries RT , the construction of some 36,000 new dwellings was started in 2016 – the highest number of starts within the past decade . New construction is concentrated on apartment buildings , and within this category , there are three equally large sub-categories : owneroccupied , subsidised rental and non-regulated rental dwellings .
Nevertheless , as with any heating market , there are smart moves and not-so-smart moves . Saara Raitala , Attorney-at-Law , Partner , at Eversheds Attorneys Ltd . points out that investing in residential real estate requires that you ’ re well aware of the nature of the investment and the realities therein .
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Long Term Commitment
For instance , “ going residential ” is typically a long-term investment ; while properties with , say , a great location may be relatively easy to get off your hands if you ’ re a private investor , the liquidity is nowhere near that of the stock market . Raitala also observes that there is no diversification at all when you ’ re purchasing a single apartment – for those wary of putting all their eggs in the same basket , this is definitely a red flag .
“ On the other hand , if you ’ re looking to hedge your bets by indirect investment in the form of a residential fund , for instance , you must fully understand the terms of the investment , starting with the risks and actual profits .”
Eversheds deals with all legal aspects of the real estate business from land purchases , planning and land use agreements to construction and upkeep of real estate holdings . The company also serves private individuals in business related to housing corporations , dwelling and real estate sales .
Nuts & Bolts
According to Saara Raitala , it is crucial that you consider what it is that you ’ re actually buying . Purchasing an apartment from a housing company means buying a part of that company . “ If the housing company is of poor quality , your investment is probably not that great , either ,” she says . Furthermore , buying apartments as an investment