Which real estate is better to invest in?

Buying real estate is always a win-win investment option. You can invest money in various objects that have their own characteristics. Let's dwell on each in more detail:

Residential real estate — buildings belonging to the housing stock: apartments in a multi-storey complex, country house, rooms in multi-family (communal) apartments, annex to a residential building. Residential real estate is one of the most reliable and highly liquid assets for a private Ukrainian investor. It is often advised to buy real estate at the excavation stage. In the future, you can choose how to dispose of the purchased object - rent it out or sell it to earn the difference between the price at the zero cycle and at the stage of handing over the house.

Commercial real estate — premises, buildings, constructions and plots intended for profit by leasing or conducting business activities directly by the owner. The profitability of commercial real estate depends on many factors, both market-wide (for example, rental rates or the correlation of demand and supply), and the individual investor. By the way, if you have decided to buy real estate, we recommend contacting the best luxury real estate agency. Capital.

In order to profitably invest in commercial real estate, it is necessary to carry out an expert assessment. It allows you to make the right choice of the object, predict all risks in advance - not to lose, but to increase your capital. Commercial real estate is evaluated based on the following factors: location of the facility, availability of access roads and communications, availability of storage facilities, physical condition of the facility.

• Land plots. Land is real estate and is a passive and very long-term investment. It is suitable for any type of investment - active, passive combined, long-term and short-term. The profitability of investments in land is 6-7%. others may be too difficult for beginners. Despite all the advantages, this investment may not be suitable for a novice investor. The fact is that before starting to invest in land, it is important to think through complex issues and dozens of legal fine points.

So which real estate is better to invest in, especially for novice investors? It is best to invest in residential real estate, it will always be in demand. As for payback, it all depends on the stage of construction and the class of residential real estate. Real estate investment experts recommend paying special attention to luxury new buildings. The primary housing market provides inviolable guarantees not only of the safety of deposits, but also of their high profitability and relatively quick payback.

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

In the market of new buildings of Ukraine, there is a certain classification that divides objects into economy, comfort, business and premium. Each of them has its own characteristics and characteristics. Deciding where it is better to invest, in elite or budget real estate, it is necessary to approach the choice of the object competently. If we take economy-class housing, it belongs to liquid due to availability and mass.

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But there are no guarantees that buying an apartment in a new economy-class building will be a profitable investment. Demand largely depends on location, and such housing is most often built in remote areas with insufficiently developed infrastructure. That is, it will be very difficult to sell or lease it at the market price. It is best to invest money in elite-class objects. Such housing is always liquid and has undeniable advantages. The main ones are:

1. Location Elite new buildings are located in prestigious areas of the capital and in the center. It is worth noting that the demand for housing in the central part of the city will always be in the price, since there is not the slightest probability that the location will lose its prestigious status. The center of Kyiv will always remain the center.
2. Limited offer. Elite real estate is a special segment that lives by its own laws. Investors who invest in new economy-class buildings are constantly competing with each other. Moreover, new projects are constantly appearing in this segment, which leads to price dumping. The elite segment is designed for a narrower circle of consumers, and given that there is practically no space for construction in the center of Kyiv, the cost of apartments in elite residential complexes will only increase. In the event of a shortage, there is competition between consumers and they are forced to pay a much higher price. And this means that you can earn quite a lot - up to 50% of the initial investment. In addition, a certain "lower price threshold" has been established in the luxury real estate market. If the value of other segments of the real estate market can still be adjusted either downward or upward, the value of a "square" in a premium house will continue to grow.

If you want to try yourself as an investor, but do not know where to invest in real estate, contact the experts of THECapital company. We know all the nuances of the market, because we know it from both sides - those who build and those who invest. Discuss your plans and goals with a real estate expert, who will advise and tell you about all the nuances of investing and choosing a liquid real estate object. Subscribe to our real estate blog updates and get the latest posts from THE Capital real estate agency.