2021-01-05

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Emerging Trends In Real Estate: USA

After the troublesome year 2020, with many unforeseen events, the US economy is still recovering. Not only did the trade war with the Chinese Republic have an impact on the market development, but also the oncoming presidential election and of course the Corona pandemic. As times are unpredictable, many people seek security invested in housing.

But even though many people were hit by the recession and could not pay their mortgage, the demand for new housing still is far higher than the offer,

Read our small blog about what trends came up in the US and what will be important in the future.

Growing Population

Other than in the countries of Europe, the US American population continues to grow. In just 50 years, the population grew by 120 million and has now reached around 320 million. While the birth rate of Americans is somewhat around 1,76 and therefore below the reproductive level, the enormous growth is due to the undisputed attractiveness of the American Dream to migrants from all over the world. That results in a steady demand for new homes of all sorts and sizes, depending on the various groups coming to the country.

Changes Related to Corona

Apart from the immediate effects, the Covid-19 pandemic is expected to have some long-lasting impact on the market. This is mostly due to changes in behavior, which will live past the lockdown.

More Work from home – Fewer offices

Many people working in offices got used to the idea of working from home. That means, they will not want to go back to their office working places after – and if – everything went back to normal. So there will be less demand for office buildings in the future, especially for those located in the very city center for image reasons. Clerks will be happy not to spend hours in traffic jams anymore and prefer to sleep longer and spend time with their families. It depends on agreements between employees and companies about surveillance systems, project management, and the cost of office equipment, whether the whole concept will succeed.

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Need for bigger homes which are suitable for home office

Last of all let’s have a look at those places, where many plans to be working from during the next few years. In the past, many people held a small apartment in a central area, worked in an office not too far away, and spent both work and leisure outside of the home. Restaurants, gyms bars and so far provided enough distraction that many saw their flat only for sleep and dressing. So they didn’t ask their home to be large or too cozy, as they hardly ever saw it. With the pandemic, they will suddenly need much more space, both to work effectively and to feel fine there. That means that the demand for larger homes will rise and many will even want to leave the city to have more space and more green around them; given that they find proper infrastructure and internet connection there.

Economy-related Shift

Because the economy is unstable, many private and business investors hesitate to make any larger investments in anything that could be risky. That’s why the few who currently are investing prefer to acquire real estate over anything else. As a result, housing prices continued to rise even during the recession, as they seem to be the only stable option for many.

during the last couple of weeks. For example in August 2020, the number of housing sales was 24% higher than in August 2019 and 8% higher than in July 2020.

In an overall view, housing prices have risen around 45%t since summer 2012.

As an additional factor, the construction of new homes has mostly been put on hold during the pandemic. So with continuing immigration, people investing, families moving to the suburbs, and a lot of money still flowing around, it is expected that prices will continue to climb.

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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.

Property management

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.

Property Renovation

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.

Paperwork

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 $80k 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.

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