In the conditions of an unstable economic situation, commercial and residential real estate in Ukraine remains a reliable object for investment. Profits may not always be super high, but they are currently a stable source of income. Investing in real estate in Odessa is a promising direction for those who want to save money from inflation and increase their capital.
To understand where to start investing in real estate for beginners from scratch, you need to know what types of investments are and choose the right object. There is a pattern that the larger the city, the more profitable it is to invest in real estate. This explains the increased interest in the construction of houses in Odessa. PROFI STROY builds commercial and residential real estate for sale and many businessmen believe that this is the best investment in real estate. Over the long years of its existence, the company has gained confidence in the construction market.
Investments are of two types - short-term and long-term.
Short-term investment. The investor buys real estate at the start of the sale. By investing savings in the finished project of the house before the start of construction work or at the time of the construction of the first floors, the price per square meter will be minimal. After the commissioning of the residential complex, the infrastructure is being improved, and the value of the finished real estate rises, which is guaranteed to bring a profit upon sale.
Long term investment. The investor purchases a finished property and prepares it for sale or lease independently or from a management firm.
The real estate industry is a proven and reliable investment option. To ensure a stable profit, you need to choose a long-term investment instrument. The most important indicator characterizing the economic meaning of investment is the return on investment in real estate. When choosing an object, you should determine its potential income.
Any investment is associated with a certain risk and each option has its own pros and cons of investing in real estate. There are two ways to make a profit:
Investment and real estate, residential or commercial - which is more profitable for an investor? Each option has its own characteristics and advantages.
The investor can draw up a business plan and calculate the profitability. The price of commercial real estate is not rising as fast as the price of residential property. This allows you to more accurately determine what percentage of profit can be expected in the future.
Commercial premises are rented for a long time. Basically, the contract is concluded for a period of 5-10 years. Long-term lease gives you the confidence to receive a stable income.
Despite the changes in the economy, the commercial real estate market remains a fairly reliable investment option.
Odessa is a resort town where a large number of tourists come. Every year, vacationers need more and more housing, therefore, the demand for rental real estate is growing.
The crisis leads to the closure of shops, salons, entertainment venues, etc. Regardless of the economic situation, a person cannot be left without housing. It is for this reason that it is more profitable to invest in small apartments that are always in demand.
Finding a potential buyer or tenant for residential real estate is easier than for commercial premises
Investments in real estate in Odessa, as well as in other cities, have their disadvantages:
It should also be borne in mind that there will be expenses for utilities, tax deductions, maintenance.
The key to a successful deal for the purpose of resale will be a well-chosen object. The cost for it should grow faster than for similar options. If we consider residential real estate, apartments with additional benefits are becoming more expensive. The good location, elite layout, house security, etc. are taken into account.
The price is influenced by the condition of the apartment. When purchasing a new building or housing on the secondary market, you will have to use the services of a construction company to make repairs.
Commercial real estate is purchased for resale less often than residential real estate. For the transaction to be profitable, the investor must know the specifics of the real estate market and be well versed in the direction of the business for which the object is planned to be used.
Renting out may not be very profitable when, after the purchase, you need to re-equip the premises for a certain type of activity. In such a case, the lease payments may not recoup the purchase and renovation costs that have been carried out. To avoid such a situation and determine whether investment in real estate is profitable, you need to consult a specialist. He will help you draw up a business plan and calculate profitability, after which you can make a final decision.