Places & Spaces
69
Property acquisition on the open market
Several reasons could be proposed for this, including: inefficient construction strategy; high cost of funds; adherence to standards in building codes and poor poor site selection; high cost of construction; lack of market conditions with low yields in property values When the economy is weak this can lead to a bearish property market; trending to a buyer’s market, where property values are sometimes flat or falling and the rate of increase in construction cost can exceed the pace of appreciation of property values. In instances such as this, buying in the open market is usually more attractive than building on your own. In the reverse conditions, where build instead of buying on the open market. there is a seller’s market, it may be more favourable to
Buying your property on the open market carries fewer risks, but nonetheless proper planning is required. It is not recommended for an investor with limited
experience to proceed with property acquisition without the assistance of a