Earn 40% Upwards by Flipping! Look At Ukrainian Market With Many Real Estate Opportunities

Flipping can be a steady business, which allows many individuals to live and thrive, even growing into companies of various sizes. We’re looking at flipping opportunities of the Ukrainian market and provide some calculations given the available objects.

What is flipping houses?

To flip a house or apartment means to buy one for a lower price and sell it for a higher price in a short term (usually, some months or a couple of years). It is an investment opportunity utilized in many countries and blocs, including Ukraine. It has a difference from buying a property to own and run since the latter approach requires being a landlord, which means dealing with tenants, fixes, taxes, and routine management of a thousand small things. Surely, you could hire a managing company to do all that but that means deduction from your net profit.

Flipping is considered an active investment – compared to passive income like the ones received from:

• Buy and hold real estate as rental apartments (if they are managed by a hired company)
• Holding money on bank deposit
• Having money in stocks and other securities
• Having gold bullions or diamonds lying in your safe.

Unlike all four just mentioned, you will actually be doing much more work to earn on flipping – finding a good property, fixing/finishing/renovating/upgrading/redesigning it, finding a buyer, etc. Even if you do the middle stage by hiring someone, you still spend a lot of your time and effort to find a good object and then sell it. Also, people buying an investment property to rent must be good in a continuous process of management and development of their property, which is just not interesting to many opportunistic investors seeking some quick buck.

Why house flipping is advantageous? What risks and opportunities it has?

In the entire world, flipping usually embraces two possibilities:

• Finding an undervalued or overleveraged property, which has a potential of a better sale price with no or little improvement.
• Buying a newly commissioned object, finishing it to make it suitable for immediate living, and selling it for a better price, which covers expenditures for buying and finishing + profits.

In Ukraine (as well as in some other countries), there is a third opportunity of flipping:

• Buying an object on one of the stages of development or construction when it has a lower price and then passively wait until it gains enough market cost to resell it.

That’s exactly what most Ukrainian investors do! Also, there are ones, which combine the first two possibilities to land on even better profit. In addition, citizens of Ukraine have access to banking financing to buy and hold more than 1 object on the stage of development simultaneously. Unfortunately, there are no wide banking leverage opportunities for foreigners in Ukraine, so they should enter the market of flipping having the entire investment sum on hand (or on a bank account).

Now, let’s quickly review the pros and cons of flipping.

Pros:

• Fast money
• Potentially safer investment (in collaboration with a local company advisor)
• Many such objects in Ukraine.

Cons:

• The need to search and analyze objects (if doing it on your own)
• Involvement in passive waiting or active renovation
• Taxes (in Ukraine, you should own property for over 3 years to avoid paying capital gain tax).

Below, we’re exploring what specifically income flipping of the third option could bring in Ukraine.

Some fast calculations for flipping homes incomes

Let’s look at a specific object. On the Ukrainian market, there are many objects under construction every year, even during a crisis. For only the first 6 months of 2021, there were nearly 4.8 million square meters of new residential objects commissioned throughout Ukraine (collectively, detached homes and apartments in many-story houses).

If you’re working with a local professional agency, which finds objects under construction at a good price, thoroughly checks them (for the legality, reliability of a developer and builder, compliance with the requirements and terms of contracted construction, etc.), and offers investors, you will receive easy access to a sheer number of objects under construction.

DGY Investments Company offers exactly such checked objects to their clients-investors, for many years already. For instance, Edelweiss House, located in the heart of the historical Kyiv, Pechersk district. In August 2020, the cost of 1 sq. m of an average apartment was $1,277. By July 2021, it already was $1,851. Only price increase gives above 44% income (as the construction comes to end and commissioning is planned). The same calculations can be made for other portfolio objects of the company. To find out those numbers, contact us now and our managers will thoroughly consult you during a meeting.

Conclusion

Flipping objects is a reliable investment if you’re working with DGY Investments Company, a local market expert. We proudly deliver our clients only highly marginal and reliable real estate objects. Contact us now to set up a consultation with one of our agents and start earning on flipping already tomorrow!