Investing in real estate is one of the easiest and most effective ways to generate passive income. The real estate in Ukraine is constantly developing, despite the hostilities and the general situation in the country’s economy. Residential complexes are being built, new facilities are being put into operation. All this makes investing in real estate a popular option for saving and increasing your own capital.
How to make money in the real estate market
There are several investment options:
- Purchase for the purpose of further leasing.
- Investments at the initial stage of construction with subsequent sale (after the building is put into operation).
- Provision of various services.
The most obvious option to get rich on investments in Ukraine is to invest in a finished object for the purpose of its further operation or resale. Let’s analyze each of the options separately.
Purchase for subsequent rental
In Ukraine, income from renting out real estate does not lose its relevance. The trend of renting apartments near the sea, for example, in Odessa and the region, is especially popular. During the holiday seasons, the demand for it grows several times. Help with choosing a good apartments in Odessa can specialists from local real estate agencies.
This investment method has a number of advantages:
- minimal risk of losing your property;
- the ability to sell the object at any time to return the bulk of the investment;
- stable income throughout the calendar year.
Among the disadvantages of buying ready-made real estate, a long period of occupation is usually singled out, varying within 5-8 years and highly dependent on the location of the object in question.
Investments at the construction stage
Another option to get rich on investments and get passive income is to purchase an object in a building under construction for the purpose of resale. Theoretically, the profit from resale can be 20-70%. It all depends on at what stage the property was bought, how well it is located and what class the building is. For example, each floor erected can increase the cost of the object in question by 2-8%.
Completion of construction adds another 5-10% to the cost. Completion of facade work, landscaping and communications is another plus of 15-40% to the total cost. Among the advantages of this investment option: a quick payback period (about 3 years), the possibility of reselling an object at any stage of construction, and a small investment threshold. The main risk of this option is the risk of “freezing” construction at any stage.
How to make money in real estate?
Earnings can be both on commercial and residential real estate (depending on capital). The most popular options for investing in real estate in Ukraine:
- houses, cottages;
- garages, warehouses.
The choice of an object option should be approached as consciously as possible, taking into account the situation in the country and the market. It is possible to get rich on investments in commercial and / or residential real estate in Ukraine, the main thing is a competent approach and assessment of all risks.