What mistakes lead to the purchase of illiquid assets? Mercury Group CEO Irina Alazova answers

Even in top locations, there is a risk of purchasing real estate with low growth potential if you do not take into account a number of factors. Irina lists the main mistakes buyers make that can reduce your profit.

1. Not taking into account the characteristics of the property

When buying, it is important to pay attention to the following factors:

• Developed infrastructure
• Services and amenities of the complex
• Level of competition

2. Overestimating the liquidity of a particular location

With poor transport accessibility - far from shops, cafes, attractions - properties are difficult to rent out

3. Focusing only on the price per square meter

A high or low cost per square meter is not a guarantee of profit. Sometimes a purchase occurs at a price peak, and in the future the property may become cheaper. Often, the premium segment is more reliable and quickly sold due to the limited number of offers and demand, while in a more budget segment there is a lot of competition.

4. Not thinking through an exit strategy for the project

To make money on resale, it is important to understand in advance:

• Who will be the potential buyer
• To what extent does the property meet the expectations of this audience
• Competition and demand

Without these answers, you may face a long sale or a price reduction.

Mercury Group will help you avoid costs and hidden losses: We do full market monitoring at the time of the request, check the developer and seller of real estate, evaluate the area and infrastructure, compare the property with other offers and give a reasonable recommendation on whether to enter into a particular transaction. If you are buying remotely - video tours and detailed online consultations.

We will personally accompany you at all stages of the transaction, help you choose real estate according to your requirements, legally conduct a purchase and sale transaction or draw up a lease agreement.

For all questions related to the purchase of real estate in Latvia and the possible receipt of a residence permit, we provide our investors with a full range of concierge services.