Some thoughts for those who are thinking about investing in real estate in Ukraine.
What objects can be the subject of investment: residential real estate (primary and secondary market), suburban real estate, commercial real estate (for their own purposes and as profitable real estate).
Part 1. Investment strategies.
The investment strategy is important for any investor and is different for different types of real estate.
We will consider investing in a new building as the most popular type of investment at the moment.
There are 2 main strategies for buying an apartment in a new building (for investment):
1. I bought it at the pit, sold it before putting it into operation. Highest risk and highest earnings (time / profit ratio).
2. I bought it on the box (below the risk of "unfinished") and plan to rent it. The best option is to find a developer who rents out renovated apartments (there are now such) or have a team ready for repair. In this way, you should plan to own the Property for at least 3 years from the date of registration of ownership and buy several apartments to optimize time and costs.
When you buy for yourself, it's a different strategy and a different approach. In Kiev, there are many Objects that are suitable for life and not suitable for rent and vice versa.
Why is strategy important? Here are real examples:
Failure. A person bought 5 apartments in different new buildings, took them cheaper, but more (he could buy 4 “high-quality” apartments), without a strategy.
1) Didn't leave the project at the construction stage, before commissioning - lost time;
2) Developers delayed commissioning, as a result, lost 6 months for rent;
3) I didn't turn to consultants (I'm talking about a real estate agent) and bought layouts that don't actively want to rent or buy in general;
4) Carried out the registration of property rights and for the first 3 years "got" to taxes.
Result: today the "investor" is trying to sell, already at the "entry" level, more than 4 years have passed, as a result, the investment turned into expenses.
Success. An investment is under construction (the box is ready), an apartment on the way out with a renovation from the developer, at that time it was not an ordinary concept for Kiev and the developer did not press down on the price, he did not yet know that he would be successful. The investor came in with a strategy: he bought it at the construction stage and came out at the end of the project readiness = earnings in 1 year amounted to 20% of the investment.
What is the use of lawyers? Yes, we are simply in favor of the fact that to a question in which you are not a pro approach in a comprehensive manner and with the involvement of specialized specialists, most often the costs of them are paid off with a torus. And yes, we know those who do everything themselves and are successful in their projects and chosen strategies.
And we talked about the strategies in the new building, and what is happening in the commercial ... ooo)
Everything described is the subjective opinion of the author and does not pretend to be true. If you had other situations - tell us about them in the comments, we will be happy to discuss.