Can rental properties be more than just additional income?
Real estate investments sound simple in theory: buy a property, flip it or rent it out, then invest your profits further until you are financially comfortable. In reality, gaining enough profit from your investments takes time and careful consideration, and those expecting a quick turnaround are left disappointed after conducting basic research into the matter. For those, returns from owning rental homes or from selling properties may not seem worth it, especially as you are expected to invest not just your money but your time and effort as a homeowner. However, it is essential to keep perspective - real estate is a great industry to invest in precisely because of its stability. Although your assets may not skyrocket in their value overnight, over time, you can build an extensive, fruitful portfolio that can help you reach the financial independence you are seeking.
How to start investing in real estate?
First and foremost, you need to put in the time and effort to study the area and the local real estate market. What are the amenities and opportunities around the property? How good is the local school district? Are there any offices and big-time employers nearby? How about parks or grocery stores? It’s important to remember that a place you want to buy and a place you should buy are not always the same. While many of us would love to own a cozy cottage in the woods or a beach-front house, realistically, more people would be interested in a small, tidy apartment close to the city center. It wouldn’t be a bad idea to spend a few months carefully considering neighborhoods, towns, and even countries to gain an understanding of who the locals are and what kind of tenants would be attracted to live in this area. Market research is a slow process, but it is better to be sure of your purchase than regret it later.
How to actually get rich on real estate?
Successful landlords are often thought to be older people who have accumulated significant capital over their lifetime to buy up real estate to fund their retirement, but if you want to start on this path, do not wait until you have enough money to afford multiple residential buildings from which to profit. One of the major benefits of real estate is the opportunity to pay in parts, whether you choose to take out a mortgage or a lease or agree on a payment plan with the seller. Profiting from real estate is a slow start, but even though the cash flow you will get from a single property might not be impressive, as long as you choose smartly, those property expenses will recover themselves in no time. Some investors go as far as to recommend buying a rental property per year to bulk up your portfolio and make your investment profits increase exponentially over time.
Don’t think of the initial purchase in terms of “how much do I need to earn to buy a 300k home,” but instead consider it your investment in a business that you are starting. Any business requires an initial monetary investment and orderly management. As your income from the rentals starts to accumulate, you can invest part of that money back into your properties to increase their value. Dated furniture, dirt and grime from daily use can significantly bring down the price of your property, but with some minimal upkeep, the value of the real estate can easily be doubled or even tripled in just a few years.
How can you make real estate investment easier?
But what to do if you don’t have all this time and energy to conduct research on the local real estate market and further establish your investment business? The easiest solution is to find a trusted real estate investment agency. A good agency will compile a comprehensive list of available properties within your budget and requirements and will provide guidance and even insider tips on each location. You should be confident that the agency you are doing business with is not affiliated with or sponsored by anyone. At the end of the day, you as an individual should be the client and not some construction firm that has cut a deal with local real estate companies.
As tricky as it sounds to choose the right company to do business with, reading online reviews and hoping for the best are not the only options out there. Some agencies get creative to assure customers of their reliability. For instance, a real estate investment agency in Ukraine, DGY Investments, has introduced a system where each client signs up for a small fee to get full access to the agency’s portfolio and consultation services. If nothing fits their needs, the money is simply returned after 90 days. If a property does catch the client’s eye, the client receives assistance with finding tenants or buyers, finishing and renovating the property and finalizing all the legal paperwork. This approach attracts many new customers who can then rest easy about their investment.
Regardless of the path you choose, property investment is a lucrative industry experiencing a major boom due to the pandemic. With some initial preparation and research, anyone can get rich off of real estate, so do not hesitate to try it out for yourself.
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More about DGY
DGY is a real estate investment and property management company. Our experts have an impressive experience in turning businessmen into smart real estate investors. We collect limitless opportunities throughout the world’s best real estate markets and help our clients implement the best deals. We take care of all due diligence and customize documentation while your income grows. We also provide you with property management services so you can forget about the tiresome maintenance of several objects and entrust this process to professionals.
Investment advice and recommendations
DGY is an investment company that takes care of every client and helps them become successful investors. With the help of an investment experience and a well-thought plan, we will help you examine the market, choose a strategy specifically for you or your business, and calculate future costs to start making money with real estate investment.
In order to invest in real estate, you should consider how you will run your management in Ukraine. DGY will help you eliminate all possible pitfalls at an early stage as a personal project manager will be assigned to your case. They will assist you in choosing the project according to all required objectives.
DGY Investments takes care not only of purchasing property but also renovating an existing one. With the help of a thorough plan and estimating, we will thoroughly prepare a property for sale. Our professionals evaluate an investment property and create a strategy that includes the costs for renovation, possible taxes, fluctuations on the market, etc. Therefore, our clients are able to resell the renovated properties in Ukraine with more than 15-20% profit from the initial price.
Before our clients decide to deal with real estate investing, they consult with our experts concerning details such as the necessary documents needed to purchase a property and successfully run all the processes connected to it.
Therefore, if you are eager to invest in Ukraine, it’s essential to have all the paperwork done correctly, and that’s the moment when our team of experts takes care of this step. DGY Investments helps investors buy real estate property, manage the paperwork, start preparing relevant documents for purchasing realty in Ukraine, and close the deal successfully.
Real estate investment opportunities in Ukraine
When an investor decides to invest in real estate in Ukraine, the most affordable way to attain stable passive income is through buying residential real estate. Investors can expect to receive a regular monthly payment from their tenants at a fixed monthly amount, unaffected by inflation or other unforeseen circumstances. The amount of rental income will vary depending on the size, type of property and location. For example, buying an apartment in Ukraine’s capital Kyiv is beneficial to investors due to offering a large working population, central location and affordable prices. Hence, the minimum price of renting a decent one-bedroom apartment in Shevchenkivskyi District will be around $1000 per month in 2021, followed by Pecherskyi District with a cost of $850 per month. Besides, investing in real estate in Ukraine annually brings clever investors up to 15% of yield, attracting many business people every year.
Properties for investments in Ukraine
Ukraine has a giant sector for real estate investing. Businessmen who come there all over the world often choose between investing in residential and commercial properties. The main advantage of buying property in Ukraine is the affordability of prices on the houses and apartments. For instance, if you invest in real estate in a historical district, a luxurious apartment will cost you around $85k only.
How to invest in Ukrainian Real Estate
In order to invest in Ukrainian real estate, you should take into account a list of crucial factors. The first one is to choose what kind of realty you are going to invest in: residential or commercial. It is vital as it should comply with Ukrainian real estate law. The second tip is to identify the purpose of purchase in order to make a strategy for the property. For instance, you may purchase the property for your own use or buy it for lease. The next step is to calculate the taxes and what kinds of taxes are payable during the purchase, owning, or selling. Also, to invest in real estate properly, you should keep in mind currency control rules in Ukraine to sell a property and get a higher profit.