Investing in real estate. When it is better to buy an apartment for rent?

Latest real estate statistics show that housing prices continue to decline on average by 0.3-0.5% per month, depending on the segment and the city area, while last year from January to April they grew at the same pace. Then it seemed that we have passed the lowest point of the fall and rushed up to new heights, but now, at least until the fall, the activity of the real estate market is hardly possible. I should also add that the rates on deposits tend to further reduce, the stock market makes it impossible to make money, there are rumours of the hryvna devaluation, the instability of the euro and U.S. dollar. But things are not so pessimistic ...

We see the opposite situation with rental market for apartments, offices, commercial property. High activity, a small price increase in the end of the year ...

Positive news from the rental market are encouraging that market will turn in the direction of growth. Of course, we will depend on the situation in the world economy, development of the mortgage and credit conditions, wages, political stability and the pace of development of our country. But for the optimists, everything shows that now it is an excellent time to invest in real estate.

For example, the purchase of a two-room apartment in Kyiv downtown for subsequent lease. It is possible to by an apartment of 50-60 meters in the downtown, with all costs for renovation and equipment, for around 200 000 - 240 000 $. Monthly rent of such apartment will be 1100 $ -1500 $ per month. Average - $ 1300, per year - 15600 $. Let’s subtract 20%, expenses and taxes - we get $ 12,480, which would correspond to approximately 5% -6% per year. Not too bad! This is in the time of crisis, compare the rates on deposits, consider the risks and the time you spend on the receipt of such income. And when the market goes up, add at least another 10-15% of the capitalization per year.

Serhiy Shevchuk, "Teren Plus"