Real Estate Articles - Page 10

Real estate tax. Ukrainian realities.

Verkhovna Rada of Ukraine within adoption of the Law on the improvement of the Tax Code (№ 8217) approved an amendment according to which the tax on real estate property, that is different from the plot, will become effective on July 1, 2012 and not on January 1, 2012, as it was planned earlier. The taxpayers will be individuals or legal entities, including non-residents - owners of residential real estate. Non-residential real estate is nontaxable. Residential real estate includes:  houses: townhouses and condominiums;  extension to residential houses;  apartments;  cottages;  multi-room (communal) apartments;  garden house;  summer houses. Residential building - a major building, constructed in compliance with the requirements established by law and designed for permanent residence therein. Residential building comprises mansion houses and apartment houses with different numbers of storeys. Mansion house - a house, located on a separate plot, and composed of residential and nonresidential premises. Extension to residential building – a part of the building, located outside the contour of its outside main walls and having one or more main walls with the main part of the house. Flat (apartment) - an isolated premise of the residential building designed and suitable for permanent residence. Cottage - a one or a one and a half storey house with small living area and the plot for permanent residence. Rooms in multifamily (communal) apartments - isolated rooms in the apartment where two or more tenants live. Garden house - a house for the summer (seasonal) use, which does not meet the residential house standards of building area, external design and engineering equipment. Summer house - a residential house which is used for a country holiday during the whole year. Nontaxable real estate: - residential real estate owned by the state or territorial communities; - residential real estate located in areas of exclusion, defined by law; - family-type orphanages; - garden house or summer house, but no more than one object for a taxpayer; - residential real estate that belongs to large families, bringing up three or more children, but not more than one object per family; Real estate tax base is a residential area of residential real estate. If a taxpayer has few objects of taxation, the tax base is calculated separately for each of these objects. Tax allowance. The tax base decreases when calculating the tax: For an apartment - by 120 square meters. m; For a dwelling house – by 250 square meters. m; Such a reduction is available once during the reporting period and applied to the object at payer’s option. Tax rate. The tax rate is set by city or village council as a percentage of the minimum wage set at 1 January for 1 sq. meter of residential area of the residential real estate: - for apartments, residential area of which should not exceed 240 sq. meters, and for residential houses, residential area of which should not exceed 500 sq. meters, the tax rate is no more than 1%. - for apartments, residential area of which is more than 240 sq. meters, and for residential houses, residential area of which is more than 500 sq. meters, the tax rate is 2,7%. In 2011 the Law of Ukraine "On State Budget" established such a minimum wage as: 960 UAH - from 01.04. to 31.09; 985 UAH - from 01.10. to 31.11; 1004 UAH - from 01.12.2011. The absence of the object valuation and its market value has become the particularity of the Ukrainian real estate tax. And this is specific know-how. Perhaps this was deliberately done in order to simplify administration, and more likely, the real valuation is simply impossible. There were a lot of remarks in commenting on the law which equalizes the owner of the high class real estate with the owner of the ordinary real estate. Do you think that the apartment with residential area over 120 square meters or the house with area more than 250 square meters are ordinary accommodations in Ukraine? There is quite a liberal attitude to the tax now. I think it will become much tougher in a while. First nasty surprises we will get before the law came into force in the form of amendments and comments. But it’s not necessary to meet trouble halfway because in all developed countries there is a property tax. We only need to try to properly manage our property. Real-estate tax will be paid in 2013 in Ukraine Real estate agency "Teren Plus" – property rent and sale in Kyiv downtown.Luxury apartments for rent, apartments for daily rent. Property management.

Baseina street. The history of Kyiv streets

Baseina str. In the 1840s, in the middle of the street running from Bessarabska Square, a "pool ditch" was built. It was a water intake ditch for sewage from Kreschatik. During the great building on both sides of the street the ditch was filled but the street’s name has remained the same - Baseina. Thus began the development of Klovsky ravine, which separated the Palace area from of the Pechersk, and went into a big valley Lybidska stretching up to the Dnieper. To solve the problem of the transport connection between the two upland parts of Kyiv - Pechersk and Starokievska - Kruglouniversytetska street and Klovsky descent were paved. It is a descent, not a slope because the name to the streets were given only by the social elite that has always lived in the up part of the street. In the 1870-1890s the large buildings were built on Baseina street, as if continuing the functionality of Kreschatik. These were the apartment houses with shops and offices on the ground floor. On the first floor there were just flats. Basements were used as workshops. At the crossroads after the 1920s there were boot cleaners’ boxes with dark-skinned and beautiful Assyrians. And Bessarabka became one of the main places of their compact settlement. At the end of XIX century Ukrainians and Jews, Poles and Germans prefered to place their stores and rent apartments in this area. Reinhold Gliere lived in the house #6 in the 1876-1894, 1913-1914 and 1916-1920. In the court-yard of the house # 5 there was a two-storey house rented by carpenter I .Mabovich. His daughter, Golda, who was born in Kyiv in 1898 went down in history as the Israeli prime minister Golda Meir. In her book "My Life" she was recalling her "not historic" homeland. As soon as the ditch in the center of the street was filled, shortly after that lockers, livestock and vegetables shops replaced it. This market stretched up to Prozorovska street (now - Esplanadna), where another market was located lower Sobacha tropa (now - Lesia Ukrainka Blvd). Now there is Palats Sportu. There was no WC that is why traders ran into main entrance of nearby houses, causing tenants’ outrage. After Stalin’s death, the shops were closed down and replaced by the boulevard, which was reconstructed in 1984, and ornamental shrubs were fenced with iron railing. Now Baseina street is one of the Kyiv central streets with numerous fashion shops, restaurants and salons. Real estate agency Teren Plus offers business apartments Kyiv in Baseina street. Kirkevich V. "My City - Kіev"

The streets of Kyiv. Yaroslaviv Val

The streets of Kyiv. Yaroslaviv Val View zoomed Map Our real estate agency often offers our clients apartments and offices for rent or sale on the Yaroslaviv Val Street. This old street has an interesting history. It begins from the grand old Golden Gate of Kyiv, repeating the configuration of the defensive earthworks, stretches to the unpreserved Zhydivsky gate, the old name of which in 1920s was changed to Lviv gate for political correctness reason, but they were destroyed by Khan Batuy in 1240, although the city of Lviv was founded only in 1256. The street took its name from the son of Prince Vladimir - Yaroslav. Many times it changed its name in favor of ruling regimes: Velyka Pidval’na, Polupanova Voroshilova, Hitlera. There are a lot of historical buildings on Jaroslaviv Val. House № 1 (architected by M. Dobachevskiy, 1898), a beautiful in its impracticality building, can often be seen in old postcards. Unfortunately, still it isn’t restored. Mansion № 3 (architected by F. Golovin, 1858) now belongs to the Embassy of India. Professor of medicine N. Strazhesko lived in the house # 5. He was one of the first to describe and set a clinical diagnosis of myocardial infarction. Karaite kenassa, house # 7, of popular architect of Kyiv Vladimir Gorodetsky was the House of Actor in Soviet times. The editorial office of the national-patriotic newspaper "Rada" was in the house # 6 in 1906-1914. It was published by Grinchenko, P. Tichina, S. Petlura were editorial members. The founder of the world helicopter school famous aircraft Sikorsky passed his childhood and adolescence in the house # 15 of Yaroslaviv Val. There was a musical drama school (the original homestead has not survived), founded in 1904 by the prominent composer Nikolai Lysenko, where K. Stetsenko, L. Revutsky, A. Kosice, Kozlovsky came out from. In the house # 32, where now the Embassy of Italy locates, in 1907 K. Kvitka and L. Ukrainka, spent the honeymoon. House # 25, built by architect V. Nikolayev in 1899 is a private male gymnasium of V. Naumenko, where M. Ril’skyi studied. During the government of Hetman Skoropadsky Naumenko became the Minister of Education, vice-chairman of the Ukrainian Scientific Society. It was situated in the house # 36. Here, the first president of the Ukrainian Academy of Sciences Vladimir Vernadsky was elected in November 1917. Under the will of N. Tereshchenko in 1907 there was built the house # 40 projected by P. Hollands’kyi and P. Aleshin for urban primary school. The building imitates the old Russian style. There is the Institute of Theatrical Art of Karpenko-Karyi since 1950. This is only a small part of the legacy that keeps this street. Touch the history ... rent an apartment on Yaroslaviv Val Street Based on the book of B. Kirkevich "Kyiv is my city".

High Class Real Estate. Location.

What determines the high class of real estate and its value first of all? What allows us to count on a quick lease for the highest price? What ensures the maximum sale price increase? The first criterion is “location”. Since 1996 our real estate agency leases and sells apartments, offices, houses and commercial property in Kyiv downtown. We know how it is important to choose a good area for an apartment or “location”. First of all, it is a city centre, it is not that big in Kyiv, and moreover the notion of “centre” may change and expand with the investment flow. For now I would determine the limits of the city centre by the Victory Square, then Chornovola st. and Glybochytska st in the west. I would delimit Podil by Olenivs’ka st. and Naberezhno-Khreschatitska st. Then - by Naberezhne Shosse st to Pechers’ka Lavra, upper Pechersk - to the Olympic Stadium and further down the street Zhylianska to the Victory Square. Of course, this division is quite conventional, and somewhere the line is drawn pretty optimistic, as an experienced realtor would say. It is also necessary to keep in mind the exceptions - new buildings, places of new active construction and undervalued areas. ”Location, location, location” is the main criterion for choosing a property, especially in case of high class real estate.

Apartments in Pushkinskaya st.

Details about apartment Real estate agency Teren Plus offers rental and sale properties in Pushkinskaya street. We offer apartments for daily rent in Pushkinskaya st. At the moment we can offer, for example, an apartment in Pushkinskaya 12B, one room studio, excellent renovation, located in a quiet courtyard – it is available for both daily and long-term rent. Real estate agency Teren Plus is always at your service, if You need an apartment for daily or long term rent. Call us – we will always help! Pushkinskaya street appeared in the 40s of XIX century, at that time it was called "Elizavetinskaya", in honor of the Russian Empress Elizaveta Petrovna. In the 1869-1899 - Novoelizavetinskaya. The final part of the street was formed in the early 1870s, when the vacant lot in front of the University was sold out and built up (part of the vacant lot was built up, another was transformed into a park). The street took its modern name in 1899, in honor of the 100th anniversary of Alexander Pushkin’s birthday. The street buildings of the late XIX - early XX century are almost completely preserved. The initial part of Pushkinskaya street was almost completely destroyed in 1941 along with several blocks of Khreshchatyk and neighbour streets. On the 24 th of September, several days after the German occupation of Kyiv, buildings in the main street of Kyiv and in the surrounding neighborhoods began to explode one after another. The blowing up of buildings was made by a an underground group remaining in the rear, ruled by Ivan Kudrya. Later on he was awarded, the street near Lybidska area was named after him. However, the circumstances of that group actions are still not known and controversial ... After the war a part of the buildings was restored by captured Germans. And today, in case of renovation one can find German inscriptions of 1947-1948. Buildings in Khreshchatyk, Pushkinskaya 2-4 and low part of Proreznaya were built again in Stalin empire style. In the Musykal’nuy lane at the corner of Pushkinskaya and Proreznaya, the park was built up. Next to it there is an original building of "Kyivmetrostroy", through which the automobile pass of Boris Grinchenko is arranged. Pushkinskaya street combines unique central location and tranquility of a quiet green street. Houses built before the Revolution and during Stalin reign show chic and luxury of different ages, as the street always had an elite view. It is prestigious to live and work here and now. There are many companies, representative offices and banks. In the house # 6, which is the former building of Leninsky District Comettee, the Embassy of Turkmenistan has settled. In the house # 32 there is the Union of Composers of Ukraine, in # 36 - residence of the Patriarch of Kyiv and All Rus-Ukraine Filaret. Many famous and popular celebrities lived in Pushkinskaya street in different times, e.g. there is a memorial plaque to I. Nechuy Levitsky on the building # 17, (in this house the writer lived during 1889-1910), the actors Zoya Gaidai, M. Litvinenko-Wohlgemuth, M. Romensky, A. Khvostenko-Khvostov lived in the house # 20, Konstantin Dankevich in # 21, composer M. Verikovsky in #23.

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"

Investing in Real Estates for Noobies

The first investment advice we can find in the Talmud. It sounded like this: hold a third of its assets in cash, one-third in the “commodity”, third in the "real estate". Everyone knows how to buy or to rent the property, but as time and last crisis have shown, there are not so many successful investors. If you are a serious investor, as a rule, you will use the services of real estate professionals before making a purchase. If the amount to be invested is not large, the desire to save often forces making decisions without consulting with realtors ... What should know everyone who wants to invest or simply buy a property in order to increase his savings or receive the income from the lease? Is it rising, falling or frozen in anticipation, like it is right now. Whether the views of Realtors on its further development are different? Our real estate market has a short history, since the early nineties to about 1998, it was growing rapidly. Price of the first sold apartments did not exceed $ 1,000. Imagine that a two-room apartment in Kyiv in the spring of 1991 could be purchased for $ 1,000. And the apartment in downtown would cost much less than the flat in Borshchagovka, if it not corresponded, according to real estate sellers, an important criterion - the renovation . By 1997, the apartment cost per square meter in downtown has reached $ 1,100. then the first crisis on our real estate market began. It lasted until 2001, at the time the apartment price per square meter in Kyiv downtown fell to $ 500-700, which roughly corresponds to the current decline by 40-50%. In 2001, the rapid growth in property prices started in all segments. In 2008 the average cost per square meter of the apartment in downtown was up to $ 10 000 ... Based on the market cycles, we can assume that the current crisis should finish by the phase of growth ... Whether it is formed from its own funds or it is borrowed? For what period of time? Investing in real estate - it is a rather long term project. If you consider buying real estate in the time period of 1-3 years, it’s more speculation, and it is possible only in a growing market. If you choose the right moment to buy a house or an office you can receive rental income and, in addition, if the price of your property is rising, capitalization is also in growth. Renting an apartment, an office, gives different income, and at the same time expenses will also vary. There is an illusion that if you have invested in real estate, you may relax totally... It is not correct. You will need to spend a lot of time and efforts on repairs, equipment, management and maintenance of your property, as well as communication with tenants and different services. There will be also differences depending on market segment that you choose. The time and money that spent the owner of the office, residential apartment and daily rent apartment a, shop or land plot, may be very different. What do you want to buy ... apartment, office, house, land plot? This choice depends only on you, on your experience, resources, desire, preferences and temperament .... Wish you successful investing! Shevchuk Serhiy, May 2011

To lease an apartment for the non-resident property owners has become difficult

Real estate agency «TEREN PLUS» explains the new Tax Law provisions, which has come into force on January, 1 2011. Non-resident property owner can not now lease an apartment, house or office. According to the paragraph 170.1.3., real estate, owned by a non-resident individual, is now can be rent only by an individual entrepreneur or resident legal entity. For this purpose a non-resident has to register himself and to become an entrepreneur or to conclude a written agreement with an authorized person who performs his/her representative functions and appears to be his/her fiscal agent. Violating this paragraph a non-resident is considered to evade taxes. The specialists of our real estate Agency are ready to consult You on this issue and help You to conclude an Agency Agreement. Or get consultation on Property management in our Real Estate agency. S. Shevchuk, July, 2011.