If no one lives like me, why are there 150 homes just like mine in my building? Will we all be happy in our equal homes or will we be none? Has anyone thought that I like to have hundreds of books at home and my neighbor from the second make models of the cathedrals of the world? Besides, he’s got four kids, two are twins, and I have a son, but my mom moved in with us last year, and he brought the dog! Today we tell you the differences between a traditional promotion and self-promotion home
The truth is that we are not the same, and our circumstances even less. And let’s not start with the tastes of each one because then we don’t finish the article. In this post we want to explain the difference between traditional promotion housing and self-promotion.
Thus begins the reflection on the different options we have to buy a home.
Currently we can choose between several options, it also is advisable to know and know which one best suits our needs. Buy a traditional promotion and self-promotion home
The first time you think about buying a house is because something in your life is changing. Whether it’s because you live for rent or because you’re in a house that no longer meets your needs or doesn’t suit your new circumstances, a child, the home office…
And then begins a process where you start looking for “House in Valencia” and return thousands of options: Old, new, renovated, to reform, new construction, with elevator, with terrace, with swimming pool…
You start to rule out options until you realize that what you want is to start a house, your house. A home that adapts to the new times, that is modern, energetically sustainable and has the comfort and qualities to take care of you and yours.
And this is where we can classify, between two large groups how to acquire a new construction housing. We tell you the difference between traditional promotion and self-promotion housing!
It is the free development activity where a company, the developer,buys a land to build a building and takes care of all the necessary expenses of the architect and the construction company, as well as the rates of the city council and taxes until it sells the houses. How the promoter starts the operation without even having buyers, with the risk that this entails, decides, at its discretion, what the homes will be like and whether they will have two, three or four bedrooms, swimming pool or garage and the surfaces of each room to, depending on that, sell it at the highest possible price and in order to obtain the higher profitability.
Let’s keep in mind that the benefit of the developer, that is, what he’s going to earn, is the difference between what it costs him to build a home and the price we’re going to pay for it.
The promoter’s profit is typically between 25% and 35% of the “cost price”of each house. That is, it causes the price of your home to increase by almost a third its real value.
To reduce the construction price these companies seek to make type homes, even implement industrialization processes,to increase efficiency and obtain greater economic benefits. Therefore, what they offer to the market are houses that,with more or less success, adapt to what most of the market needs. In this way, we have houses manufactured in series,all the same, without understanding the particularities of each one.
And in the end the people who buy those homes are the ones who have to adapt to the house itself. This would be the first difference between traditional promotion housing and self-promotion.
Advantages of traditional promotion housing:
- El promotor se encarga de toda la gestión y tu no te preocupas de nada.El promotor, además, asume toda la responsabilidad económica y el riesgo si las viviendas no se venden.El tiempo que esperas para recibir la vivienda suele ser corto.
Inconvenient traditional lyned housing:
- You buy a standardized product with little or no customization, either in the home or in the common elements of the building.
- Sustainability is not taken into account as it is an over-cost for the promoter (improving qualities) that benefits the customer (reduction of energy consumption and bills).
- You don’t know who your neighbors are.
Unlike the traditional promotion system, the developer figure is removed here as the building is financed directly by future neighbors, without intermediaries.
This means that the purchase price of each house is lower, there is no one to take any economic benefit in the operation. Everything each neighbor pays, is used to pay the architects, the construction company and stop covering the municipal taxes and taxes. Therefore we can say that the houses come out at “cost price”. Did you know this difference between traditional promotion housing and self-promotion?
Within the option of self-promotion there are countless options, such as building a house for your family in the middle of the field, but we want to focus on two self-promotion systems for buildings in cities:
It has a great tradition in our country and starts with a management team that creates the cooperative and makes the first investment to buy the land. He then hires the architects to develop a “model project” and to be able to calculate the number of homes and the price of each of them.
It is then that the future neighbors begin to integrate into the cooperative with the right to one of the resulting dwellings and begin to pay among all the construction of the building. As the operation starts with the project already closed and without having all the homes sold,the system allows a certain level of customization in homes but is generally limited to changes in qualities and some minimal changes in distribution, and are a increase in the final price of the house. The aesthetics of the building and the facilities, services and common areas are outside the customization options.
Pros of cooperatives:
- The cooperative is in charge of starting the project and all the procedures, giving guarantees that the operation will go ahead.
- You can adjust the distribution and qualities, with an increase in price.
- In the absence of the developer, the price of the houses is at “cost price”.
Cons of cooperatives:
- You still don’t know your neighbors at all, even though you’ve dealt with them a couple of times.
- Although you have customization options, in the end you end up sticking to the “model project” by not increasing the price of the house.
- Global control meetings are needed to learn about project development and make certain common decisions.
We hope that it has helped you and you have understood the difference between traditional promotion and self-promotion housing.