Investing in real estate in Ukraine: where is the best place to buy a home?

Many have heard the phrase - money should work. There are several main ways to preserve and increase your capital:

• bank deposits;
• purchase of real estate;
• investments in precious metals;
• investment in business;
• acquisition of securities.

Which one is right for you depends on the amount and willingness to take risks. There are no risk-free investments. For experienced investors with large capitals, choosing an option is less complicated, and a beginner needs to be careful. If you are just starting to invest and are not yet very confident in your knowledge and abilities, consider investing in real estate. By the way, if you are thinking about buying real estate, we recommend that you contact us professional luxury real estate agency THE Capital.

The Ukrainian real estate market is full of both strange at first glance riddles and completely trivial answers to them. And novice investors should pay attention to the following parameters:

1. Price policy — it can be price changes, as well as the annual increase in the cost of housing.
2. Demand for real estate - here it is very important not to make a mistake with the choice of the object, since profitability always depends on many factors.

Investing in real estate is still one of the most attractive tools for preserving and increasing capital. Advantages include:

• the ability to use the asset for one's own purposes;
• receiving a solid asset (the investment is secured);
• returns are higher than alternative investment instruments.

But there are disadvantages of investing in real estate. Including:

• stagnation of the real estate market;
• error when selecting an object;
• freezing of construction/underconstruction.

Also, a significant disadvantage of investing in the real estate market is ¦a fairly high entry threshold, and you can return the investment in an average of 7-12 years after the purchase. In modern realities, Ukrainians save money for more than one year, so they do not rush to invest everything that was previously accumulated in real estate. However, today there are quite favorable conditions for investing in real estate in Kyiv and other large cities of Ukraine. Together with the increase in the cost of buying a home, the rental rates are increasing.

If you decided to invest in real estate, first you need to understand its types and features. There are three main types of real estate: land, housing and non-residential premises. In order not to make a mistake with the choice, you should determine your goals and methods of obtaining income: rental or resale.

What is more profitable: investing in residential or commercial real estate?

If we consider investments in the Kyiv real estate market, there are many segments. It commercial unruliness, economy housing, comfort, business, premium, private houses, etc. Choosing between residential and commercial real estate is an inevitable crossroads at which an investor finds himself. It has its own features, pluses and minuses, which ultimately determine the profitability of the investment in a particular case.

Let's take a look at these options to determine the benefits of each:

1. Commercial - at first glance, this is not the most profitable option for investment. A commercial object is more expensive, so many bypass it, not understanding its benefits at all. Commercial real estate pays off faster. For renting, you do not need to invest additional money in repairs, buying furniture and appliances.
2. A residential apartment is a liquid product that constantly increases in price and you can make money on this investment when you resell it. A beginner investor will find it cheaper to buy a residential property and it will be easier to decide on the method of income: rent or resale. Residential real estate has the potential for price growth.

See also: How to rent a non-residential premises?

Investing in commercial real estate is more like owning a small business. By purchasing an object, you will be able to rent it out later and receive a stable monthly income. Commercial leases are longer than residential leases. You can make good money buying an apartment or house if you manage to resell them profitably. And here there are two options:

1. Investments in real estate at the pit stage — buying an apartment on the pit for resale before putting the house into operation is accompanied by many risks: the object may not be built for various reasons, or the deadlines for handing over may be endlessly delayed. To protect yourself, you can invest in real estate from a well-known and reliable developer. The main criteria for evaluating any developer are the company's good reputation, order with permit documentation, and dynamics on construction sites.
2. Investments in luxury real estate — the demand for luxury apartments in Kyiv on the secondary market is only growing. The investor can receive income from the purchase by renting or reselling. But in the case of investments in elite real estate, it is necessary to approach the choice of the object competently and pay attention to the location, surroundings, uniqueness and limitation of the offer.

Investing in real estate is practically a win-win option for novice investors. With its help, it is quite possible to make good money in the future, if you approach investments wisely.

See also: Renting an apartment: how to write an ad correctly?

Minimization of risks when investing in real estate

To protect yourself from risks when investing in real estate, you need to follow several rules:

1. Carefully study the object, focusing on such characteristics as the quality of materials, the level of improvement and successful planning.
2. Compare the value of the selected object with others. Don't look at properties that are overpriced or underpriced.
3. Ask about the history of the company you intend to buy. There are only a few companies that can boast of a high and stable demand for their apartments.
4. Consider the location of the property.

Every year, the Ukrainian real estate market becomes more and more promising. If you want to successfully invest in real estate, contact a professional. They will tell you which option will be profitable and help you choose the best objects. Was the publication interesting and useful? Subscribe to our real estate blog updates and get the latest posts from THE Capital real estate agency.