Six Reliable Ways To Invest In Real Estate Without Buying Property In 2022
Okay, so you have some money accumulated with the purpose of investing. But you really hate dealing with that boring and tiresome thing of being a landlord and everything connected (like finding a good physical real estate object, dealing with its finishing, furnishing, finding tenants, collecting monthly payments from them, listening to their demands & whining, and spending your nerves when dealing with rude and ‘professional’ tenants).
Some of our readers might have already felt sick while reading the abovementioned issues connected to investment properties for sale in a role of a landlord – although we haven’t listed even a third part of all the responsibilities of a typical landlord!
Fortunately, there are other options of making your money make more money being on the market of real estate investments. Below, we’re considering ways of how to invest in real estate with little money.
REIT is a Real Estate Investment Trust. It is one of the market’s most highly liquid instruments, which are accessible to everyone who desires to make an investment, even a fairly small one. Investing in REITs happens via purchasing their shares, which are mostly publically traded on stock exchanges.
The nature of REIT is as such: it is a fund, which owns, operates, and/or invests in money-bringing properties. A REIT can specialize in a certain type of property (for instance, office, housing, commercial premises, hotels, timber factories, etc.) or can be oriented at any type of them. Also, some REITs may own shares of other REITs and other money-generating market instances. This is actually the lazy way to invest in real estate and you do nothing more after buying shares to receive income from your investments. This is a low-risk yet low-income investment.
ETF is an Exchange Traded Fund, which is by nature a basket of securities that are traded on a stock exchange. This way is another option of how to invest in real estate with little money but it is actually riskier than a REIT since the income depends on how well some ETF is performing on the stock market. So, it can fall and rise. Thus, you should be familiar with stock trade in order to pick good ETFs that would generate income, not loss. You can buy and sell your ETF share the same as you would do with a regular share.
3. Mutual funds
A Mutual Fund is a pool of money professionally managed by money managers, who collect money from various individual and institutional investors to invest it into various instruments like bonds, stocks, money market instruments, and other assets. Not all of those assets are real-estate-specific, so you have a plentitude of choices here. Like in the case of ETF, this is a risky investment.
4. Investing in real estate managing companies
There are companies on the market, which do activities very similar to REITs with the basic difference that they do not create a REIT. You can become their client (a.k.a. investor) by signing an investment contract with them to become a co-owner of a specific property (instead of owning a share, by means of which you co-own a small share of everything that REIT owns and operates).
This is a way of being more specific in what you actually own. However, you are eligible to receive income only from a specific property that you own. One of the specialists in the market is the DGY Company, which currently offers many real estate objects in a fast-paced growing market of Ukraine and its capital.
5. Hire a property manager
If you have more money than just would be good enough for buying 1 or several shares of any of the above, it is time to think about hiring a property manager. This is a professional, who operates on the market of real estate, looking for opportunities and investing operated money to receive profit.
Although this individual or a company might be similar to all of the above, it is a more independent operator, capable of giving more profits due to the absence of a layer of too many other people who’d eat up a part of your profits (but risks are also higher). A manager can work only for you (if you give them enough large money) or work as a pooled manager, which means they’d collect money from more participants. As a rule, it is a licensed individual professional or a small company.
6. Real Estate Notes
This is a tool, which might be called differently in your country or not be present at all. The essence is to buy a note for a property from a titular owner at a discount price.
A previous owner might have gone broke and passed the object to the bank or another creditor to pay off the debt. A titular owner wants to cover the borne expenses to write off or close off debt and sells the property below the market price to swiftly do the bookings. You might be interested in this because of the discount price. A titular owner might be interested to sell fast and low because they might be not eligible to hold it on a balance for too long or because of accounting limitations. But in some cases, the associated risks might be present – like a possibility of courts with previous non-titular owners or their reluctance to free the premises so you move in or otherwise use it.
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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.