Ukraine Real Estate

[MBS01]

Back to the main question:
From what I recently heard prices for Real Estate during the past say 6 years in Ukraine's major centres have gone up 300% based on a comment my wife made about property prices in Dneproptrovsk, Ukraine.

So I think this is something to consider too.  Is there a bubble?  Will it busrt one day like int eh USA?  Who knows, something to consider especially in a mostly all cash Real estate environment.

Thus the flats we looked at about 4 years ago for $10,000 to $20,000 are now likely at least $30,000 to $60,000 not taking into consideration all the issues previously discussed in owning real estate in a FSU country.

[Catman]

I read an article in a paper last year about some agriculture ministers from Ukraine coming to Manitoba, Canada and telling people here to buy farm land in Western Ukraine. They say the climate, soil and landscape in Western Ukraine is very similiar to the province of Manitoba and the land for sale was $10 an acre. I imagine that you would have to know what you are doing and have some knowledge of agriculture. I know of some Europeans who come to Canada and bought land in the winter hoping to start farming. When the snow melted they found thenselves sitting on some very expensive rocks

[khersongirls]

Buying land is still difficult. You basically have to buy a old building and then get the land extended around it.  In kherson a buildable lot is going on the river that was $15k 3 years ago is now 30k and there is a demand for them.  I've bought 3 apartments back in 2000 for 8k each.  Did around 15-20k plus furniture on each apartment in the center and today I could easily get 80-90k for them.   A lot of guys made some money during the early days. 

Today however It is more difficult. You can find some deals out of the center of towns..  But it a matter of knowing the right person. The banks seem to know all of the right people as they are building on park lands and taking control of most of the older buildings.

Where a deal is too be made is water front property outside of the cities. You can still find it in Ukraine and buy it..   Take a local person to assist you. I would suggest outside of Kiev or any major city.   

[kievstar]

You can wire the money back to the USA but you have the chance of being audited and being questioned how you made the money in Russia.  You could probably pay a small amount of money to get fake documents in Russia showing the purchase price being higher than what you actually paid to reduce the tax amount to be paid for nothing.  For 50,000 usd it is very small chance anyone would consider auditing you let alone making you pay taxes on it.  There are bigger fish to go after. 

If someone wants to make big bucks would be to buy around 25,000 acres of farming land but I believe you would need a local Ukraine partner to do that plus several millionaire investors.  Than lease it out to the foreign farming companies which are invading Ukraine right now. 

Hotel business still is an option as Ukraine is short of hotels.

Problem with the hotel and land lease idea your talking more than 20 million investment.  Reason the rich get richer.  They have the money to invest.

But the buying the apartment and renting boom is over.  What is going to happen when Ukraine defaults on the IMF loan money?  Also, if Russia gets their puppet elected President in Ukraine and they take over the gas transit and steel companies.  Do not laugh Russia wants Ukraine back.  May not be a bad thing for the majority of the people in Ukraine.

[tfcrew]

Rather than start a new thread, I thought I would just revive this one.

My wife wishes to sell her flat in central Odessa.
I would appreciate any leads on buyers/investors etc.
If she has to return to do the paperwork...we want it to [understandably] be a sure thing.

We live in the Dallas area.   
Some of you guys might have seen my posts on VJ & another forum.

Karl