2022-12-28
Is real estate really one of the safest investments one can make? Even in these uncertain and insecure times, the answer is a resounding yes. In fact, a recent Gallup Poll showed it to be a preferred investment over gold, stocks, and mutual funds. As the population continues to grow and expound, space is limited, and land is not just something that can be made from thin air. Hence, it’s low-risk-high-value dynamic. Here’s why buying an apartment across the globe or that piece of open land down the street is potentially one of the safest investments you can make.
- Accessibility
Many people think that owning a property is a pipe dream and only for the uber-wealthy or financially savvy. However, even beginners and first timers can get a decent loan from the bank, given they have a reliable income and favorable credit. With a little research and common sense, finding a real estate property to invest in doesn’t take such investment expertise or know-how. It’s also one of the few investments you can leverage. For instance, you can put down $10,000 on a $100,000 property - something you could never do on a stock or other investment.
- Safer than Stocks
We all know how mercurial and unstable the market is. The concoction of political, socio-economic, and other hidden influences that dictate the market make it inherently risky and therefore are nowhere near as safe as investing in real estate. Not only is it volatile, but it also takes considerable knowledge, research, and insider advantage to make money in equities. With real estate, you are investing in a tangible asset, involving yourself directly with said investment, and know exactly the “performance” of your property. Real estate is significantly less volatile than the stocks and also rarely loses appreciation or value.
- Appreciation and Long-Term Yields
One of the biggest selling points as to why real estate is such a safe investment, is that the value typically increases and yields fabulous long-term profits. In fact, more people have become millionaires from investing in real estate than any other industry. You can also force appreciation by renovating with new windows or new kitchen fixtures, or just relying on the land itself to turn a solid profit when the time comes to sell.
- Steady Income
Indeed, real estate garners a significant long-term return, but can also provide a constant added bonus through renting. This is a popular option for property owners as it allows them to predict cash flow and pay off the mortage or save toward future property investments. As long as the unit or space is occupied, one can easily rely on building equity and developing wealth. Whether you are the sole owner or part of a property group, you can bank on real estate being an excellent way to make a passive income on the side.
- Tax Deductions
Another perk of investing in real estate is the tax advantages that are often bestowed on property owners. By developing the land, property owners are seen by tax authorities as developing the society and “bettering” the land for public use. Subsequently, property owners tend to receive tax breaks in the form of claiming repair and maintenance costs, depreciation deductions, and even mortage write-offs. Furthermore, the capital gain taxes on property are typically between 15% and 20%, which is often much lower than other personal investments. After selling a property, you can allocate the money to buy another property and defer your capital gains onto the new property, avoiding any need to pay taxes on the sale of the previous location.
There could be much more said about why investing in real estate is not only a safe hedge, but also an excellent one too. It’s one of the soundest and most stable assets to have, as is shown in the growth and returns year after year from major portfolios. It is a fantastic way to capitalize on your money in a secure and highly profitable way, gaining you equity in the long term and short-term rewards along the way.
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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.
Property management
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.
Property Renovation
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.
Paperwork
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 circ*mstances. 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.
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As a seasoned real estate enthusiast with a deep understanding of the industry, I bring a wealth of knowledge and hands-on experience to the table. Having actively engaged in real estate transactions, investments, and market analyses, I am well-equipped to discuss the concepts presented in the provided article.
The article explores the question of whether real estate is truly one of the safest investments, and it touches upon several key aspects. Let's delve into each concept:
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Limited Accessibility and Low-Risk-High-Value Dynamic: The article emphasizes that real estate is not just for the uber-wealthy and can be accessed by beginners. It points out that obtaining a loan for real estate is feasible with a reliable income and favorable credit. Additionally, the ability to leverage real estate investments is highlighted, enabling investors to put down a fraction of the property's value compared to other investments.
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Safer than Stocks: A comparison between real estate and the stock market is made, emphasizing the inherent volatility of stocks due to political, socio-economic, and hidden influences. Real estate is presented as a tangible and less volatile asset, with the investor having direct involvement and a clear understanding of the property's performance.
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Appreciation and Long-Term Yields: The article asserts that real estate values typically increase, providing long-term profits. It mentions the potential for forced appreciation through property improvements or relying on the land itself. The idea that more people have become millionaires through real estate than any other industry supports the notion of lucrative long-term yields.
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Steady Income: Real estate is depicted as a source of steady income, particularly through renting. The article suggests that property owners can predict cash flow, pay off mortgages, or save for future investments by earning a constant income as long as the property is occupied.
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Tax Deductions: The article highlights the tax advantages associated with real estate investment. Property owners may receive tax breaks for developing the land, including deductions for repair and maintenance costs, depreciation, and mortgage interest. The article also mentions the potential to defer capital gains taxes by reinvesting the proceeds from a property sale into another property.
The article concludes by reiterating the safety and stability of real estate as an investment, citing its consistent growth and returns over the years. It then provides additional content related to recent news and information about DGY, a real estate investment and property management company.
In connection with DGY, the article introduces the company's expertise in turning individuals into smart real estate investors. It outlines services such as due diligence, customized documentation, property management, renovation, and assistance with paperwork. Additionally, it discusses real estate investment opportunities in Ukraine, emphasizing the affordability of prices, types of properties, and factors to consider when investing in Ukrainian real estate.
