Ways Of Investing In Real Estate And Get Profit From It
Making money in real estate is one of the ways of passive-over-then-active earning scenarios in life. There are several ways of earning, each requiring its own budget, time & effort.
Increasing property value as a certain way of making money in real estate
Three factors define the cost of any property: location, development & improvements. As cities expand, more land is taken to be used for the needs of city infrastructure development: building roads, houses, facilities & shopping malls. As they are built on the land, the cost of it increases even more. When you’re buying land or buildings on the outskirts, they grow in price as the neighborhood develops & the city ‘comes to you’. With wise investment, which includes the ability to recognize city development patterns & optimal prices for objects, this way becomes the easiest one of how to make money in real estate investing.
Also, you can make improvements to the held premises like making a better kitchen, adding a new bedroom, improving a garage… Anything that makes a house more modern-looking & stuffed will increase its price. That can be a good thing if you do not invest in modernization more than it will add in value for the next buyer. Also, this step would be wise on a developing market, not deflating.
Receiving raw land income
You can give your land plot to excavate or otherwise collect raw materials from it (given a buyer will have all rights to them). If they find oil or coal on your land plot, harvest wheat or rye, collect timber, drill an artesian hole, or anything like that, you will gain payment for such use of your land depending on the type of collectibles.
Buy & hold to resell to receive a real estate income
This approach considers inflation. As everything rises with time due to inflation, you can simply buy something & hold it for a while to resell it after several years or decades (given that the neighborhood develops, not decays & that the property value grows faster than money value drops). This is the easiest way of how to make money in real estate, as you do practically nothing (but paying some yearly ownership tax if applicable in your country).
Renting & leasing
It is possible to let your real estate for rent or lease to private or commercial users, receiving a monthly/yearly rent. Surely, it will require your real estate to have minimum requirements for these types of rent, like be furnished & ready to live/work, as well as you will have to take care of various minor improvements & repairs should anything break but these all are included in the rent price.
And this is relatively easy to do! This is why many real estate owners holding from several to several dozen rented spaces prefer doing nothing more in their life but idle living for the money that comes from the rent & lease. It would be wise, however, to save a reasonable percentage from this money to be able to buy a new space for rent when the old one fully amortizes (from 20 to 50 years).
Renovating an old property to resell
This option requires much money for real estate investing, as well as much effort & time. The essence of it is as follows: you buy some old house or building & renovate it according to the latest trends so as to resell it for a bigger price. Sometimes, the difference between the purchase & sell price can reach 20 times but any such undertaking requires a lot of money & time to be invested in the process of renovation.
This option is good not for everyone since it requires either hiring a professional team of workers who’d do all the works or doing them yourself if you’re a specialist in such. In some countries & locations, such works might require licenses, allowances & paperwork (and some works might be disallowed to be done by natural persons – only certified specialists of legal entities might be allowed). Also, not all premises are suitable for that: a house to be renovated shall have a reliable foundation, floor slabs & walls, not have insects, moist, or mold problems & be freed of various legal issues that would restrain its renovation & further sale. In addition, from several months to over a year of everyday work of a professional team is usually required to fully renovate a residential house of 2,000 sq. f.
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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.