Investment without risk!Where to invest? - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine
To provide maximum opportunities by investing their money in foreign real estate, and thereby minimize the risk, it is necessary to take into account some common factors. To should invest in...Buying property abroad is not art, and scienceTo provide maximum opportunities by investing their money in foreign real estate, and thereby minimize the risk, it is necessary to take into account some common factors. To should invest in a rapidly developing country or locality. The plan of territorial development should be designed for at least five years to ensure a sufficient number of investors. Total construction should not be excessive, to avoid oversaturation of the market and reduce the time of development of the territory, and to ensure the growth of prices and volume of sales.Economics and politicsYou should also consider the economic situation, because the country or region that depend heavily on tourism, will be willing to invest more in the infrastructure areas, thereby contributing to the construction and the influx of tourists. The downside can be too many approvals of the construction documents. Important stability in the country and the region. Stable and predictable political environment leads to a consistent economic policy and investment support and even to the creation of special incentives for the promotion of foreign investment through preferential tax treatment. The ever-changing political environment in the best case will cause the destabilization of the real estate market due to the uncertainty of economic support, and at worst social unrest.Natural factorsNo need to say that if you invest in a summer house to spend time there during the holiday season, you need to look for a country with a warm and Sunny climate. If you want to have a base for skiing equipment, then the choice should be made in favor of the country and the area where the longest snow. Don't forget about the investment business purposes. In today's world is fast-growing regions, is extremely attractive for business. For example, businesses will be profitable to move their industrial enterprises in some countries and regions with lower labour costs, etc. In these regions, a good return can bring strategy to purchase and hold real estate.LogisticsThe area was attractive, she should be easily accessible! Look for new low-cost airlines to save on flights; it is desirable that the property was located not very far from the airport, in an area with good road infrastructure. This strategy involves the purchase of construction in progress, i.e. plot of land on which has not started construction or under construction with a view to its subsequent resale. In reality it is not buy real estate in its purest form, as the construction of the facility is not completed and the purchase and sale of option to purchase real estate. The key factor here is the time needed to identify investment opportunities and ultimate success of the investment strategy.Short-term investment strategyThe main possibilityThe possibility of purchasing property at a low introductory price or at a extremely low initial price, if it is a new market before market mechanisms will lead to a significant growth of capitalization of the property. Then, when you increase demand, you need to sell the call option using a conventional economy mechanism of the ratio of supply and demand, which means that the price is rising as an increasing number of people wishing to buy property. Usually short term investment strategy takes 18 to 24 months, although this depends on factors such as stage of construction, the pace of construction in the country, etc.The level of difficultyThis strategy is attractive for investors due to its simplicity and low initial amount of investment, usually 10 to 20% of the purchase price, not counting the cost of legal registration. Quick payback allows the investor a relatively fast return of invested money for further investment in other construction projects. In addition, the investor does not remain long-term debt, which must be maintained, for example, payments on a mortgage loan.The main risksImportant, and therefore most risky factor in the success of this strategy is the sale of the property before it is completed, otherwise the investor will be forced to make a purchase all the rules with all the ensuing legal and financial consequences. The investor should clearly understand the mechanisms resale of the option. This can be done either private by using existing databases of potential buyers by posting private ads, online or more commercial waysвЂ” via real estate agent or other appropriate real estate portals on the Internet, etc.The yieldThis type of investment is a speculation on the growth of capitalization of the property, but because the gain varies depending on the popularity of the country, location and even specific development project. A good real estate investment in the country in which the average annual price growth rate is 10%, can provide its owner with a yield exceeding 50%.FinancingSince the property is under construction, it cannot officially register. He still must go through the process of obtaining all necessary approvals, permits and licenses. For this reason this object is not accepted by credit institutions as collateral and under it is impossible to obtain a mortgage loan.Medium-term investment strategyThis strategy involves either the acquisition of the object of construction or a resale property, at which executed the transaction of sale and properties held for 2-5 years (though sometimes longer), and then finally sold. During this time, the property for rent or for long term rent, either summer season for the purpose of earning income. When considering this strategy, it is important to clearly visualize the main aim of the investment is the creation of income or capital gains, and accordingly build their investment strategy.Although such a possibility is not excluded, it is extremely difficult to achieve high returns as in the case of rental income, and in the case of capital appreciation. It is likely that the yield will be average or below average. Typically, investors seek to increase capital and use any rental income to offset the cost of financing the transaction and the contents of the property.Avoid impulse buying, as it is a direct path to long-term investment that requires careful analysis of profitability. It is also important that the investor could afford such investments, as they are not cheap.The main possibilityThe strategy is to maximize potential capital gains by holding the investment object to changing market conditions, to sell it at the best possible price. Alternatively, you can maximize the return on investment by renting it out. In addition, investors may use the property for his own summer vacation. Usually the property is held 2-5 years to ensure sufficient capital gains to cover the initial expenses, such as taxes, legal fees, etc.The level of difficultyIn principle, the acquisition of real estate, so it is no big deal. But please note that the content of the second property in another country will require more management skills than a house in the suburbs. You will have to observe the physical, economic and legal requirements: proper care of a garden, swimming pool, lawn to the management of revenues from rent, and perhaps timely payments on the mortgage loans, payment of utilities, annual tax and notary fees, etc.The main risksOne of the two key factors is choosing the right property that will depend on your investment strategy: the receipt of rental income or capital gains.For example, if you decided to donate property to rent, then by the type of real estate will depend on the type of tenant. One-bedroom apartment will appeal to young people or young couples, but they should be located close to a lively nightlife with bars, restaurants, Nightclubs. The rent for such an apartment will be lower than for a four-room apartment, which will be attractive for families with children, but it should be located in a different area вЂ” close to beaches, supermarkets, playgrounds. Type of tenant is also an important factor when choosing furniture, and this depends largely on what state it will be your property at the end of the lease term.Real estate location is always important, because this determines the maximum possible amount of rent and the level of possible capital gains. But remember also that this will depend on the initial price of the property.Secondly, you will have to continuously monitor the real estate market in the country not to sell the property during the period of recession or stagnation in the market when it turns from a seller's market into a buyer's market, which, of course, will adversely affect the sales price. Please remember that it is much harder to do when you invest money in a new country.The yieldHolding property over long period of time, it is possible to achieve higher yields, as can be seen from the following example, but only if the market price will always go up.