A BALANCED APPROACH OF THE INVESTOR TO THE SELECTION OF A RESIDENTIAL PROPERTY OBJECT
Choosing the object of funding is a key issue for the investor conducting residential real estate transactions. In Ukraine, the analysis of the operation risk in the housing market is performed independently by every entity, therefore, the investor has to properly evaluate the financial service provided by a financial institution. The main objective of the evaluation process is to determine a reliable financial partner, as aesthetic aspects of the housing choice become of secondary importance for the investor if the overall reliability of the operation is at risk. The reliability index is a composite of introspection of the investor which is expressed by a system of coefficients for the assessment of potential financial institutions. This kind of analysis allows the investor to determine the transparency of the current and future activities of partners and financial institutions. The estimation of the investor costs also remains an important aspect of selecting a partner. When assessing the risk, the investor must rely on the effectiveness of the services rendered which are calculated on the basis of mandatory and optional expenses. The definition of criteria in the process of selecting investment objects includes qualitative parameters (area, district, floor, etc.), the costs of the investor and the degree of reliability of a financial institution which provides a service concerning the financing of future housing. The use of this approach allows the investor to make a choice of housing, guided by a specific list of financial institutions, the cost load of the oper­ations and quality characteristics of residential properties. Taking into account the developed components of the process of selection reduces the risks of investment and thus increases the reliability of operations on the real estate market. For the analysis of the approach, calculations have been made in terms of all the components with the city of Kharkiv, taken as an example as it was recognized as promising in the development of housing. Moreover, financial institutions that are represented in the region are parties to the Construction Financing Funds being the main financial mechanism in the housing market. That is, the procedure for the selection of the object of financing under the proposed approach determines the vector (direction) of the further investor relations with a financial institution. The choice precedes the implementation of a financial transaction.