What Are The Two Types Of People Qualifying To Be Real Estate Landlords
We’re talking here about the qualities you should have as an investor in rented real estate. Simply put, there are two types of people who should be investors. Is the landlord an investment opportunity for you? That’s what you’re about to find out now.
Real estate landlord qualities
There are only two major categories of investors who are hundred-percent suitable for real estate investing:
- Those who’d like to hold something tangible.
- Those who are good with people and research.
The first type includes people who would like to see with their own eyes and touch with their own hands the thing, which they will have bought. A house, multi-family rented space, land plot, a car… Anything they can palpate seems for them something way more realistic than some “numbers on the screen”, which they get if they invest in some non-physical asset. The latter can be a stock, future, derivative, option, bond, share… In addition to that, a stock market is not a good place for many since it is highly unpredictable and volatile. However, when you touch the wall of a house you own or hold gold bullion in your hand, you know – this is real. And, to be honest, tangible things tend to be appreciated more than intangible ones. Once and if some computer bug or error happens (maybe, even as a result of a highly unpredictable Sun flare), all those computerized numbers can vanish, bringing chaos and devastation. But independently of computing powers and electricity itself, gold bullion will stay here. It does not want to eat, does not tarnish. The same as a house could stand for another 100 years.
Those of the second type are highly organized landlords, who are good in various calculations. They compute everything: the cost of buying and selling, cash flow, ROI, financing, IRV, security and insurance options, NOI, REDR, cash outlay, interest rates, COCR, and other things like that. For them, numbers are everything and they are very keen on keeping all the documents and records for various financial, taxation, reporting, and personal purposes. But they also shall be good in handling issues and requests of their tenants, which might include such issues as payment for property damages, evictions, breakages, fixings, upgrades, unclogging the clogged drains, repainting walls, extinguishing large and small fires, dealing with court sues, changing burned-out light bulbs, or cleaning the pool from vomiting of drunk tenants after their 100-people parties (should you allow). That is overwhelming for many, frankly speaking. But you could hire a managing company to deal with tenants while you will be working with numbers, which are pure, clean, and behave. Or, vice versa, if you’re bad at numbers but good at work with people being a real estate landlord, you could hire a bookkeeper.
Should I invest in real estate or should I invest in land?
If you belong to either of the two types of people described above and pondering “should I invest in real estate”, then, yes, this can be your thing.
But what about the scenario if you don’t fit any type but are still allured by amazing opportunities of investing in real estate? Well, there is a great option for you: investing in raw land!
Should I invest in land? That’s a question for a million dollars and here is some rock-solid reasoning that we can tip you with:
- Vacant land doesn’t require you to deal with tenants. After you buy it, it’s simply there, behaving and not asking for any renovation, running, or improvement. You can’t break it, steal things from there, or deteriorate it (of course, if some company won’t spill chemical waste on it, turning it into Martial terrain).
- You pay significantly less property tax on raw land, especially if there is nothing on it at all. In some countries and territories, there is zero land tax, to your further rejoice.
- Your land can be upgraded with buildings and constructions on it, which you can build yourself or sell a land plot to a developer (gaining some fat of income on your fingers)
- This is a truly passive income. Unlike long and tiresome hours of dealing with tenants and objects located on the land, raw land is actually a do-nothing investment. Simply buy it, hold it, and then sell it. Profit!
There is very little competition to buy land. Really.
Unlike any other type of resource, there won’t be any more land created. Our planet has a static capacity of the land. Period. Well, unless some new volcanic island appears but that’s nothing you would be interested in commercially. Even better – land is eaten by the rising sea level. And that even plays in your favor. Thus, doing this type of landlord investment, you buy something that will only have increasing demand (and price) over time (even in remote areas).
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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.