Kinds of Investments in Real Estate
There are several kinds of investments in real estate smart investors should know of. The main ones are residential, commercial, raw land, REITs, and crowdfunding platforms. Let's see the main features of each one.
Residential Real Estate
Residential real estate includes property that may be rented to tenants or sold to homeowners. Among residential type are considered:
This is a great option to invest in as you can purchase a single-family house below the market, especially if you're a beginner in investment, and also qualify for a mortgage. According to the National Association of Realtors, the average prices for buying a single-family house in the USA are $284,600 and it's still growing. Pretty costly, that's why it is more reasonable to consider the Eastern Europe market as the prices are less than $4000 per sq.m.
As for multifamily homes, the investment volume will increase in 2021. The experts predict it to reach $148 billion this year, with a 33% gain compared to 2020, which is also a good opportunity to start investing in.
The most beneficial type of residential property to invest in. If to explore the situation on the international market, we'll see that the prices reach their top in England, where 1 sq. meter will cost you around a record $16k. Western European countries also hold a high rate of $6k per 1 sq. meter.
Thus, it is evident that the investment opportunities in Ukraine are the most attractive ones as you will be able to purchase a smart apartment in a good area starting from $1000 and easily make $800-1500 a month in passive income in no time.
Commercial Real Estate
Commercial real estate includes any type of business, office space, and large living spaces. Ukraine provides the best opportunities for investors to make a great revenue according to the market. For example, if you purchase a commercial property in Kyiv for $360k, you will be able to make a profit from rent in the second year for $43k. As a result, an annual yield of 12%. Rental income already includes payments for utilities, support, and maintenance of the building.
Raw Land & New Construction
Vacant lands or undeveloped areas are also a good option for investment because you can earn steady cash flow. Buying new construction property has plenty of potential for financial profit. For example, the most affordable states in the U.S. which remain affordable compared to their future revenue are Arkansas, Tennessee, West Virginia, and Arizona. The prices for a new land vary from $30k for 37 acres which is a great option. So, purchasing raw land in the eastern part of the Stated is a profitable decision, especially if you begin investing.
Real Estate Investment Trusts (REITs)
REITs are the companies that own various real estate types like hotels, malls, restaurants, etc. Investing in REITs implies you having no added risk of owning the property yourself. However, the pitfall of such investment is that their requirement is to make you return 90% of their taxable income to shareholders annually.
Crowdfunding platforms give investors access to assets that imply high returns. Although they traditionally bring higher risks and are limited to accredited investors or the ones with a high net worth. The main types of crowdfunding platforms for investment are REITs which are not in stock.
As you see, the most profitable type of real estate investment is residential. The prices for purchasing property in Ukraine are very affordable and expect to get back a great revenue of 10-15% per year compared to the capitals of Eastern European countries, where the average amount of property comes at $4k per sq.m.
DGY Investments specializes in real estate investments, monitoring the best offers in the most promising areas of Kyiv, Ukraine. Having explored the market to the fullest, we were able to understand the expectations and goals of smart investors and give them the best options. Our company helps to make a great passive income of 15% annually by investing in real estate. Don't miss a thrilling offer to become a successful investor and follow your wealthy future.