Reasons That Make Investing In Real Estate Lucrative
Investment business is now one of the most profitable financial ventures forward-looking investors so desperately hunting for. Investing in real estate is a highly lucrative practice that can bring loads of “uncle Franklin” bills if conducted wisely. However, there are still some doubtful and shilly-shallying entrepreneurs who question the effectiveness of real estate investments, asking: “Is real estate a good investment” And shattering their unsubstantiated doubts is what our in-and-our article is aimed at!
Now, get ready for a portion of the top 8 reasons why you should plow money in real estate!
Real Estate Has High Tangible Asset Value
All physical things that can be touched or smelled are tangible assets worth money. Real estate is represented by real properties, which are tangible assets and are worth much money. That being said, real properties have much value. Objects that have a high tangible asset value are always in high demand among shrewd real estate millionaires.
Real Properties Rise in Value
As a rule, real properties increase in value over time. It’s not only that a building appreciates in value, but also a land that can bring large revenues to an investor. For example, it’s typical for land to have larger worth than a big house.
There’s a couple that bought a piece of land for $10,000 in the 1980s, in a small community. At first, the couple wanted to build a house on the land, but their plans failed. Over years, the community started growing and the lot is now worth $1 million.
You Can Maximize the Value
Among the many reasons to invest in real estate, maximizing the value of the property is easy. You can purchase a property and then improve it by getting it repaired or adding amenities necessary for comfortable living. Buying high-end furniture or decorating the place are winning ways of making the property look more costly and valuable so, you can always stick to these methods if you want your property to have a bigger value. Then, you can rent the property out or sell it at a higher price.
You Can Build Equity in Your Investments
“Why should I invest in real estate?” Investing in already built houses will help you increase the equity in those houses. The portion of the house you own outright – this the equity of your house. The opposite of equity is the part that a bank can own if you have a bank loan. After you pay your loan off, you develop bigger equity in a property. The only exception is when the market is experiencing a temporary decline so that you can keep the property to yourself until the stabilization of the market.
You Can Know the Cash Flow in Advance
With most investments, you can’t predict the cash flow you will get in the end. But real estate investments let you find out what cash flow you will get in advance. When the property is occupied, you’ll receive cash flow on a regular basis. However, to keep the property maintained, you need to splurge a little, as well.
Here raises the question:
You Get Passive Income
Making investments is probably one of the most effective and fastest ways of receiving passive income. And when it comes to real estate, things get even spicier! You invest, the property grows in value, and then you get your cherished income. Plus, predicting the cash flow allows you to define the ways of maximizing revenue or reducing the expenses, which will double your chances of increasing your passive income.
If you set the rent for the property at a good price, you’ll get a bigger income. Practices like preventive maintenance help you avoid a number of snags that might get in your way of getting satisfactory passive income.
Take Advantage of Inflation Hedging
Real estate investment is hardly affected by inflation. This means that real estate investors can maintain proper monetary power. As a rule, it’s more expensive for companies to generate products and deliver services. What they do is raise the prices or get along with a smaller number of profits. Real estate doesn’t correlate with stocks or corporate profitability, which means that you can benefit from a natural inflation hedge.
Drawing the Line
Making a real estate investment is a profitable practice that can help you rake it in very quickly and easily! Still, investing in real estate might get challenging sometimes, which can be handled only if you get proper help from a reputable real estate investment company. It’s important for you to keep in mind that plowing money into real properties is a demanding process that requires an accurate and professional approach from investors.
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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.