In order for imitation (buying an apartment on the secondary market, renovating it and reselling it at a high price) to be effective, it is necessary to choose apartments of low value. In a conversation we had with RIAMO about this issue reported General Director of real estate agency TsDN Anatoly Pysin.
“In order to be effective in residential areas of the capital or cities in the Moscow region, low-value apartments sold at 20-30 percent below the market price should be preferred. In this case, the model will be applicable,” said the expert.
According to him, one of the main advantages of flipping is high profitability. The average annual return on investment in an apartment is 20%. The entire transaction cycle, from purchase to sale after renewal, is six to eight months, Pysin said.
Konstantin Aprelev, Deputy Chairman of the Association of Realtors, previously saidHow to buy an apartment with an improper mortgage? In his opinion, it is now better to postpone the purchase and wait for more favorable conditions in lending interest rates. However, he reminded that even if the house is purchased now, the debtor will have the right to “refinance” in the future.
Previously recognizedHow much the demand for secondary housing has decreased in Moscow.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.