Buying real estate is always a win-win investment option. You can invest in different objects that have their own characteristics. Let's dwell on each in more detail:
Residential real estate - buildings that belong to the housing stock: apartments in a multi-storey complex, country house, rooms in multi-family (communal) apartments, an extension 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 property at the excavation stage. In the future, you can choose how to dispose of the acquired object - rent it out or sell it in order to earn on the difference between the price at the zero cycle and at the stage of putting the house into operation.
Commercial property - premises, buildings, structures and plots intended for profit by leasing or doing business directly by the owner. The profitability of commercial real estate depends on many factors, both general market (for example, rental rates or the correlation of supply and demand), and personally from the investor. By the way, if you are thinking about buying real estate, we recommend contacting best luxury real estate agency THE Capital.
To profitably invest in commercial real estate, it is necessary to conduct an expert assessment. It makes it possible to make the right choice of an object, to foresee all the risks in advance - not to lose, but to increase your capital. Commercial real estate is assessed based on the following factors: the location of the object, the availability of access roads and communications, the availability of storage facilities, the physical condition of the object.
- Plots. The land is a real estate object 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 return on investment 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 investing in land, it is important to think through complex issues and dozens of legally subtle points.
So what kind of 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 the 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.
Read more:: How to rent out non-residential premises?
Where is it better to invest money - in luxury real estate or budget?
There is a certain classification in the market of new buildings in Ukraine, dividing objects into economy, comfort, business and premium. Each of them has its own features and characteristics. When deciding where it is better to invest in luxury or budget real estate, it is necessary to correctly approach the choice of an object. If we take economy-class housing, it is liquid due to accessibility and mass character.
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But there are no guarantees that buying an apartment in an economy-class new building will be a profitable investment. Demand largely depends on the location, and such housing is most often built in remote areas with insufficiently developed infrastructure. That is, it will be extremely difficult to sell or rent it at a market price. It is best to invest in elite class objects. Such housing is always liquid and has undeniable advantages. The main ones are:
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- 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 price, since there is not even the slightest chance that the location will lose its prestigious status. The center of Kiev will always remain the center.
- Limited offer. Luxury real estate is a special segment that lives by its own laws. Investors investing in economy-class new 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 building in the center of Kiev, the cost of apartments in elite residential complexes will only grow. In conditions of scarcity, competition arises between consumers, and they are forced to pay a much higher price. And this means that you can make good money - up to 50% of the initial investment. In addition, a certain “lower price threshold” has been set in the elite real estate market. If the cost of other segments of the real estate market can still be adjusted either downward or upward, the cost 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 it is better to invest in real estate, contact THECapital experts. We know all the nuances of the market, because we know it from both sides - from those who build, and from those who invest. Discuss your plans and goals with a real estate expert, and he will advise and tell you about all the nuances of investing and choosing a liquid property. Subscribe to our updates real estate blog and get the latest publications from the real estate agency THE Capital.
