How to protect yourself from unfinished property

How to protect yourself from unfinished property

Where is the guarantee that the residential complex in which you invested money will be completed? Nowhere. None of the existing mechanisms for buying a home at the stage of excavation does not guarantee that the object will be completed, put into operation, and you will get at least something. In Kyiv, large companies attract money mainly through the CFF, JII and bonds. In the regions, cooperatives, forward contacts and, more recently, financial assistance to a legal entity, which is then mutually reciprocated by counterclaims in the form of apartments, are common. No, of course, if several friends have churned out in a million and are building an apartment building, then yes, probably, this option will do. But when a complex of 200 apartments is built as a financial aid, and the buyer has only the right to demand back the money invested – well, such an adventure.

Today in Kyiv there are about 50 objects whose construction has been frozen. There are also so-called problem objects – they are built, but they have nuances with documents. At the same time, the problem one does not mean that it will not be completed. Often, due to over-regulation of the Ukrainian legislation, developers, who are confident in a positive result, begin construction without collecting a full package of documents. Thus, the problematic status is rather nominal and situational.

Every informed buyer with the help of electronic services today can check out any residential complex of interest. Basic information will be quite enough to weed out frankly fraudulent companies and residential complexes, and already for the rest to conduct a small investigation through the open registries, and then come to the developer and ask for documents. In addition to the obvious – permission to carry out construction work and documents on the land, – it is important to know what will happen with the connection to the network, and especially to the sewage system. If the developer does not understand what he is doing with sewage, then most likely he is not going to finish this object, or, in extreme cases, the complex will stand next to the cesspool.

The notorious residential complexes of the Ukogrupp and participating companies have already become a household name and are firmly associated with protracted and unfinished buildings. Fortunately, thanks to the actions of the authorities, the situation with the Wojciechowski objects did not lead to a fall in the market, although there were direct prerequisites for this. Today, such large pyramids, like this one, are no longer observed. The market is already quite self-regulating and developers in the bulk have ceased to compete at the expense of price. The buyer has become more knowledgeable and more demanding – the concepts, infrastructure development and quality of the materials used come to the fore, and not the bargain price is akin to a bait.

But what to do with the already existing unfinished complexes? There are precedents in Kyiv, including those with Ukogrupp’s facilities, which were allowed to be completed under a simplified procedure. So if you remove 3-4 documents from a complicated and confusing chain of approvals and permits, the majority of unfinished projects will be completed very quickly, and the tenants even those troubled houses whose developers made money and ran away, increasing the number of floors and adding non-residential premises, will be able to raise money to to complete their complexes and put into operation. The problem of unfinished business is not the lack of money. You just need to turn on your brains, stop playing DPT and general plans and let the market decide for itself what is good and what is bad for it.

Andriy Ryzhykov, CEO and managing partner of DC Evolution

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