How to make money in Real Estate in Ukraine

How to make money in Real Estate in Ukraine

In Ukraine, approximately 50% that are purchased on the primary market are not used by their owners for living. Such real estate is used to generate personal income, or they are bought up by various firms and agencies in order to rent them out. How to make money on real estate in Ukraine? Many people earn money on real estate in Ukraine, this method of investment is one of the most popular and most profitable in the country, but how to make money on it and what methods are there?

Basic methods of making money in Real Estate in Ukraine

There are two main ways to make money on real estate in Ukraine – short-term and long-term. During the short-term method, the investor buys a certain amount of living space, or other real estate, for example, a warehouse or office, waits for some time until the price for it increases, and then sells it. In this way, you can earn a single time, but a fairly large amount.

The second method involves buying real estate and renting it out for a long time. Basically, such real estate includes commercial premises that are used for warehouses and other industrial premises. Thus, the investor can expect to receive consistent profits over the course of several years. Often such premises are leased to logistics firms, agricultural holdings and other organizations that lease them for a period of 10 years or more.

How to make money in residential complexes in Ukraine

As it was said earlier, mainly in Ukraine they make money on the resale of real estate. Most of the investors believe that it is better to resell the residential space on the basis of the assignment right at the expense of the developer and get benefits from it. Thus, the investor saves on notary services, does not pay for advertising and does not spend money on various commissions and transactions.

At the same time, there is another plus, during the assignment agreement, you can not pay taxes. For example, portfolio investors can ultimately receive up to 50% of the return on their investments – this is also very profitable due to the fact that during such agreements investors invest quite serious amounts.

Another way to make money on real estate in Ukraine is renting out. As a rule, if the property was not sold before it was put into operation, such living space is rented out. Investors cannot afford to own an apartment or other living space, since this not only does not bring any income, but also entails the cost of additional funds, for example, for utility bills and taxes.

As a rule, an investor who has previously invested in the construction of an apartment makes repairs in it, buys furniture and makes the apartment the most attractive for clients. Thus, if an apartment has not been bought, but it is completely ready for living, then it will most likely be quickly rented. And then it will pay off to the investor in about 10-15 years completely, but this depends on the region in which the apartment is located and on the city.

How to make money in Ukrainian commercial properties

Generally, commercial real estate is bought by investors who use it to achieve their own goals, for example, use it as a warehouse or office. But some investors invest in this type of real estate in order to make money on it by renting it out.

There are certain nuances when investing in commercial real estate. For example, if you want to use a living space as a commercial real estate, then you need to transfer it to a non-residential fund.

If you are an investor or owner of commercial real estate, you can make good money on it. It will be most profitable to rent out such an area, thus you will provide yourself with a stable income for several years.

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