Passive real estate investments in 2024

Investing in real estate during the war

1. Long-term income.
   Real estate makes it possible not only to preserve capital but also to increase it significantly. Unlike deposits or simply keeping funds in cash, real estate investments provide the potential to generate passive income in the future.
2. Price growth.
   Investing in profitable real estate will result in a significant increase in value over time due to price appreciation. Currently, many Ukrainians prefer to invest in real estate in Lviv or other western regions of the country, which contributes to the steady growth of real estate prices. Real estate values are expected to increase significantly in 5-7 years. In addition, the cost of construction is also rising every month, pushing prices up. Thus, real estate investments can currently generate returns of at least 15-20% per year, given the ever-increasing cost of construction materials and the shortage of skilled builders.
3. Support for the country recovery.
   Any investment in Ukrainian business that operates transparently and pays taxes helps the country to recover from the war. Investing in real estate allows not only to make a profit but also to contribute to the development of the economy and social stability.
4. Growing demand.
   With the borders closed to men, more and more Ukrainian families prefer to rest and stay in western Ukraine, which means that hotel occupancy is increasing, which is a prospect for real estate investors for the next three to five years.

How to invest in real estate?

Investing in real estate is an attractive opportunity for many investors seeking to increase their capital and secure a stable source of income. As real estate can be a lucrative asset, successful investment requires careful planning, analysis and strategy. In this section, we will look at the key aspects of real estate investing to help you make informed decisions and achieve the financial results you want.

• Determining your investment objectives
  Before you start investing in real estate, it is important to clearly define your goals and strategies. Are you looking to generate a steady stream of income, accumulate capital for the long term, or provide a home? Understanding your goals will help you choose the right type of property and investment strategy.
• Analyzing the real estate market
  A thorough study of the real estate market is a crucial step before making any investment. This includes analyzing current trends in prices, supply and demand on the real estate market in your area, as well as forecasting future changes.
• Selecting the right type of real estate
  There are many types of real estate available on the market, including residential, commercial, rental, etc. Your choice will depend on your goals, risk level, available capital, and other factors. Each type has its own unique features and potential benefits.
• Financial planning and risk assessment
  You should develop a financial plan that takes into account all costs, including the initial investment, taxes, maintenance, etc. Risk assessment is also important to minimize potential losses and ensure the stability of the investment.
• Financing of investments
  Choosing an appropriate source of financing plays an important role in successful real estate investment. This can be equity, loans, mortgages or other financial instruments. It is important to evaluate all the options and choose the most favorable source of financing.

Investing in real estate for rent

Investing in real estate for rent is a strategy aimed at generating stable passive income over a long period. Even if the return on such investments is relatively low (relative to the amount invested), the risks are minimal, making this type of investment attractive to those looking for a stable and reliable source of income for the long term. Usually, investments in such projects pay off within 9-11 years, depending on the type of real estate chosen.

It is important to take into account the current demand for real estate, rental prices, and the needs of potential tenants. The most popular properties will be those close to educational institutions, metro stations, shops, parks, stadiums, and other infrastructure facilities.

Advantages of investing in real estate for rent:

1. Low risks. Since real estate is a physical asset, the risks of investing in it are considered relatively low, in particular compared to other types of investments.
2. Permanent passive income. Rent provides a stable and constant passive income that can serve as a source of financial stability for many years.
3. Protection of funds from inflation. Owning real estate can protect your investment from inflation, as rents generally increase over time, in line with inflation.

However, there are also disadvantages:

1. Slow payback. Usually, investments in rental real estate pay off in an average of 10 years, so it's a long-term prospect, you'll need patience.
2. Repair costs. The need to maintain real estate in good condition may require significant financial costs for repairs and maintenance.

Nevertheless, investing in rental property remains an attractive option for those seeking a stable and reliable source of income on a long-term basis.

Investing in new buildings: prospects and benefits

Investing in real estate at the initial stage of construction of new buildings offers investors unique opportunities to generate high returns and expand their asset portfolio. This approach not only brings significant profits, but also has a number of advantages that should be taken into account:

1. Rapid price growth. One of the important advantages of investing in new buildings is the opportunity to receive substantial income upon completion of construction. The commissioning of the facility is usually accompanied by a significant increase in real estate prices, which allows investors to sell their assets at a profit in a short time.
2. Lower risks. Although any investment is accompanied by certain risks, investments in new construction are generally considered to be less risky than other types of assets. Developers strive to adhere to strict quality standards and provide warranties for their products, which provides investors with greater confidence in the safety of their investments.

Real estate under construction usually attracts a lot of interest from buyers, which provides investors with high liquidity of assets. The sale of completed projects becomes a quicker and easier task.

Investment in construction

Investing in construction is a promising and reliable way to increase your capital and earn a stable income. Real estate construction is one of the most attractive sectors of the economy, offering a wide range of investment opportunities: from residential and commercial to industrial and social.

If you are looking for opportunities to invest in construction, we invite you to consider our projects, which are characterized by high quality, modern design, environmental safety, and functionality.

By investing in our projects, you get the following benefits:

• The opportunity to purchase a property at an attractive price during the construction phase and sell it at a profit after commissioning.
• Opportunity to lease the property and receive a stable passive income.
• The ability to use the property for your own needs or to transfer it as an inheritance.
• Opportunity to receive tax benefits and other advantages from the state.

We guarantee full transparency and security of transactions, as well as favorable terms of cooperation.

Real estate investment strategies

There are many options for investing in real estate, including the main ones:

1. Buying renovated apartments and renting them out.
   This approach involves the purchase of ready-made renovated apartments and their subsequent leasing, which provides a stable income from rental payments.
2. Purchase of inexpensive apartments with subsequent renovation and leasing at a higher price.
   An investor buys a low-value property, invests in repairs and improvements, and then rents it out at a higher rate, which allows him to generate additional income.
3. Purchase of real estate without renovation and subsequent sale after renovation.
   This strategy involves the purchase of unrenovated real estate, its renovation and improvement, and then selling it at a higher price to profit from the increase in the value of the property.
4. Buying apartments in the early stages of construction and selling them after completion.
   An investor can buy apartments during the construction phase and sell them after the project is completed, which can bring additional profit due to the increase in the value of the property.

Evaluating a construction investment

To assess the prospects of investing in a particular property, you can use a simplified formula proposed by Nobel Prize-winning economist Robert Shiller.

According to this formula, the efficiency ratio is calculated as the ratio of the cost of a real estate object to the annual profit from this object. The formula looks like this:

Efficiency factor = property value / profit for the year

If the resulting factor is in the range of 10 to 15, it means that the property has an adequate price.

If the factor is less than 10, the property is clearly undervalued, so buying it can be profitable.

If the factor is greater than 15, the property is overpriced and its purchase is not recommended.

Although this is a simplified method of evaluation and does not take into account all possible risks, it helps you make an informed decision and make a successful choice when investing in real estate.