- “Primary” or “secondary”
- Building assessment
- Number of storeys
- Repair quality
- Seller mistakes
Not every property can be sold quickly and profitably. For example, few people will be interested in housing located in a dilapidated building. But an apartment in a new building, and even in a prestigious area, will “leave” quickly if the owner puts it on the market at an adequate price. Experts say about such an apartment that it is liquid.
The liquidity, or “demand”, of an object on the real estate market is a key factor for many buyers, because it is comfortable for living and renting out. Such apartments are often used as a profitable investment of funds, since they gradually rise in price and maintain high liquidity even during economic crises..
What factors affect the liquidity of housing? Why do some apartments sell like hotcakes, while others have been waiting for their buyers for years? This publication will tell you about it..
“Primary” or “secondary”
Modern houses are built with the latest technologies and new materials. Of course, in the long term, such housing will be more liquid. This is understandable, because modern apartments are more comfortable and spacious, the communications in them are not worn out. So all the benefits are there.
Nevertheless, buyers continue to pay attention to the secondary housing market, despite its still rather high price per square meter and the dark legal background of some properties. Why is this happening? The answer is simple: the instability of the residential construction market and the slow pace of construction. Few people today are surprised by the bankruptcy of developers and the postponement of the delivery of houses into operation. And if the housing is not completed, then what kind of liquidity can we talk about??
This is a very important factor when it comes to the liquidity of an apartment. For example, objects erected next to an industrial area or along busy roads will never be highly liquid. After all, it is more difficult to sell them than those located in an ecologically clean area. Good transport accessibility and developed infrastructure are of great importance. Among new buildings, the most popular are those that are located at a moderate distance from the city center, and not “on the outskirts”.
But the liquidity of housing may be unequal even in a single residential area. The most attractive in this respect are apartments within walking distance from the metro station and public transport stops. Around these places, as a rule, there is the most saturated infrastructure in the form of shops, markets, cafes, service bureaus, etc. The park or green zone located next to the house significantly increases liquidity. But the presence of an industrial enterprise or a garage cooperative is a big minus.
Today “high-rise buildings” are erected mainly from finished panels or using monolithic frame technology. Housing in “monoliths” is preferable in many respects. In such buildings, the number of load-bearing walls is minimized, so it is easier to make redevelopment in the apartments located in them. Due to the absence of cracks, for which panel houses are “famous”, in monolithic-frame buildings, the best thermal and waterproofing is provided. A significant plus of many new buildings is the complete insulation of the facade.
As for the “secondary housing”, then there are three possible options – panel, block and brick houses. The last two are preferred. But regardless of the type of material, it is important to scrupulously assess the condition of the building. The liquidity of housing is also affected by the condition of the entrance, as well as the improvement of the local area (the presence of a playground, parking, places for walking dogs).
Number of storeys
The number of storeys of an apartment in relation to the total number of storeys of the building is of great importance. It’s no secret that housing located on the ground floor is in low demand among buyers, which is why it is cheaper. True, commercial structures may be interested in an apartment overlooking a busy street, because it can be converted into an office or a small store.
As for the objects located on the top floor, the situation here is ambiguous. If we are talking about the primary housing market, then the apartments “under the roof” can cost no less than those located below. But this is possible only if several conditions are met, including: a good view from the window, as well as high-quality thermal and waterproofing of the floor. In some cases, the liquidity of an apartment can be reduced if it is located on the corner of a building.
Layout is a very important factor that significantly affects the liquidity of an apartment. Housing with an inconvenient arrangement of living rooms, with a small kitchen, with a combined bathroom, etc. is in low demand..
Some tenants make redevelopment to rectify the situation. But it can be effective only if it is possible to achieve real comfort after the work carried out, and the redevelopment itself has been legalized. Only then can we talk about a higher liquidity of the apartment.
Residential properties offered on the market cannot always boast of high-quality repairs carried out in them. Curved walls, floors and ceilings have become commonplace for a long time. Of course, this negatively affects the liquidity of apartments. It is necessary to spend a lot of money to carry out a good repair, leveling all surfaces, as well as installing double-glazed windows, modern heating radiators, a metal entrance door and wooden interior doors. It will not hurt to carry out the Internet, cable TV, to finish the surfaces with high-quality decorative and wear-resistant materials.
All costs will have a positive effect on the “demand” for the object, because many buyers are willing to overpay for a good apartment renovation, rather than move into housing “with bare walls”. In addition, prices for building materials and work tend to grow.
Sometimes some sellers “with their own hands” reduce the liquidity of housing, overstating its market value. As a result, their properties are idle, while other apartments are bought quite quickly, since they have a more adequate price..
At the time of the onset of the economic crisis, illiquid apartments become uninteresting for buyers, and liquid ones often do not find owners due to the reluctance of sellers to reduce the price, despite the fact that the demand for housing during this period is very small.