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Author Topic: Property Investment in the FSU  (Read 5163 times)

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Offline lordtiberius

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Re: Property Investment in the FSU
« Reply #15 on: November 11, 2012, 03:46:36 AM »

I notice that you've asked this question on a couple of different threads.

There are no problems with purchasing particular types of land.  There was a thread about this earlier:-

However, as long as land isn't designated as agricultural land then you're free to own it yourself.

There are various types of land designation in Russia.  If you are looking to buy land to build a house then you really need to look for land that's designated as ИЖС «для индивидуального жилищного строительства» - for Individual Housing Construction.

There are other ways, for example some agricultural land can be designated for the building of dachas but, I really would suggest, that if you're looking to buy land in Russia that you stick to ИЖС land and leave all the bothers of trying to change land registration from one type to another type to the locals.

So foreigners can own land free and clear?  In Mexico, you can own the buildings but the best you can get is 99 year lease.

Offline kievstar

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Re: Property Investment in the FSU
« Reply #16 on: November 11, 2012, 09:36:24 AM »
Mexico has another loophole in that don't finish the building 100% as taxes stay low.  In Ukraine no taxes on property.  When you visit Mexico and see many homes 95% complete don't assume they ran out of money.  A tax loop hole. 

Regarding property a foreigner really has to go threw many documents to own property in Ukraine.  I know many people who though they owned property and paid for it and ending up paying for something they did not own.  If your going to buy propety in Ukraine use one of the top law firms that are global in Kiev. 

Many Ukraine politicians got rich by selling property to foreigners and then taking it back legally as the documents were not done right.  If you go north of Kiev and see many empty apartment builders in the new buildings that popped up.  There not empty - those apartments are in the courts and the foreigners are getting screwed one by one. 

Foreigners were paying $300K to $500K for those apartments.  Most 100% cash. 

That northern area is also full of radiation and only foreigners would pay to live there.  In Kiev the people know to live south of the city. 

Offline lordtiberius

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Re: Property Investment in the FSU
« Reply #17 on: November 11, 2012, 11:01:49 AM »
Mexico has another loophole in that don't finish the building 100% as taxes stay low.  In Ukraine no taxes on property.  When you visit Mexico and see many homes 95% complete don't assume they ran out of money.  A tax loop hole. 

Regarding property a foreigner really has to go threw many documents to own property in Ukraine.  I know many people who though they owned property and paid for it and ending up paying for something they did not own.  If your going to buy propety in Ukraine use one of the top law firms that are global in Kiev. 

Many Ukraine politicians got rich by selling property to foreigners and then taking it back legally as the documents were not done right.  If you go north of Kiev and see many empty apartment builders in the new buildings that popped up.  There not empty - those apartments are in the courts and the foreigners are getting screwed one by one. 

Foreigners were paying $300K to $500K for those apartments.  Most 100% cash. 

That northern area is also full of radiation and only foreigners would pay to live there.  In Kiev the people know to live south of the city.

A number of years ago, I was looking at real estate in the Philippines when I had a lot more money than I have now.  I was worried that something like you described was going to happen to me and I walked away from it.  I am half and could be regarded as local national there (at least that's what others told me.)  I got this info from a British expat operating a BnB in the PI, that if you marry a filipina than you a local national in the eyes of the law.  Like I said, I didn't pursue it.

Do you know anything about importing and exporting in and out of Ukr?  Thank you.


Offline AnfieldRiot

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Re: Property Investment in the FSU
« Reply #18 on: June 17, 2013, 02:33:51 AM »

  This is a topic I would love a little banter on, I know the thread is old so I will leave this reply short. 

  For the sake of reinvigorating the conversation, I am deeply rooted in the process of looking to purchase land and/or housing w/property in Russia. I have three regions in mind but as of yet haven't committed to a region as I continue to study the market. 

Offline Donhollio

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Re: Property Investment in the FSU
« Reply #19 on: February 02, 2014, 10:57:03 PM »
 With some of the recent corruption topics on here, I don't think I would go so far as to buy a plot of land to grow some potatoes on in the FSU.  However if you can afford to toss the cash out, and have no hiccup in the finances from doing so, then I suppose its a different situation.
 Years ago I chummed with a guy in Odessa who had a decent portfolio of real estate in the area. I asked him if he was concerned that it could all topple in a flash. He calmly replied, 'no.'   
 I'd steer clear if I was interested, just too difficult to deal with the FSU corruption, if what Kievstar wrote is true. 

Offline Chris

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Re: Property Investment in the FSU
« Reply #20 on: February 03, 2014, 01:26:01 AM »
About 6 or 7 years ago I did a lot of research on buying land for building over there, I went to look at a number of plots, and I was very close to buying some, fortunately, I didn't proceed, something told me it was just a  little too risky, boy am I glad I never went through with it, some people I know who bought a bit earlier in the same area are still sitting on a reducing asset with no likely hood in the near future of getting their money back.

Offline AkMike

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Re: Property Investment in the FSU
« Reply #21 on: February 03, 2014, 01:39:41 AM »
I hope that my apts. in Kyiv won't drop when I want to sell!
Thomas Jefferson Quotation, "My reading of history convinces me that most bad government results from too much government."

Offline RichyRich

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Re: Property Investment in the FSU
« Reply #22 on: November 30, 2014, 07:28:36 AM »
Russia - Risky due to the government, the corruption, and land title problems. Rental income low so capital appreciation would be the factor you would be looking for rather than income. Mortgages only beginning there so all cash deals are necessary.

Baltics - Estonia & Latvia it seems you needed to be on the bandwagon a while ago, if you are not in now it is risky to start there. Lithuiania however seems to be the poor relation in the Baltics, the EU FSU member in the shadows, I think opportunity may lie there.

Ukraine - I have never been but I hear prices have doubled in a year so clarification on the scene there would be nice from anyone with info?

Poland - I think is seldom considered, all the attention goes to surrounding countries, as with Lithuiania. Anyone any thoughts on Poland?

Bulgaria/Romania/Croatia/Czech - The UK papers have been shouting about investment there for a while, when everyone is in a place the smart money is selling so too late I think.

Slovakia/Hungary - I dont know - does anyone else?

Belorus - I would suspect is a similar business enviroment to Russia, anyone know?

I am thinking of Lithuania or Poland as the places where may be worthy of a speculative foray, they look like the lower priced seldom touted investment places.

Kaliningrad may be worth a look, although Russian territory, they do have a coastline and presumeably beaches. Anyone know?
I know this is an old topic but I have been thinking about this lately and I came to the following conclusions;

Russia: While the potential returns can be great, it's not good overall as there are so many hidden dangers you could lose a fair whack.

Ukraine: Currently I wouldn't go near property in Ukraine on the off chance Putin decides to invade and makes it all worthless.

Baltics: These are still an option, yes just like in 2007 you needed to be there a while ago but there's still money to be made. Buy-to-Let is an option.

Poland: You need 'permission' to buy property which is a hassle but at the same time it's also quite cheap and once it opens up to not needing permission, you can make money but this is a couple of years out I think.

Czech Republic: This has now hit it's peak, if anyone wanted to get in, it's too late IMO. But Buy-to-Let is still an option just less of a return in real terms than before.

I'd stay away from Bulgaria and Romania for now, Croatia is an option but not something I have looked into so don't know whether it's worth it. Most certainly steer clear of Belarus IMHO.

I will say that Spain and Italy are goldmines when it comes to buying land and building property. I know a couple of people that have bought land on the cheap in Italy and then sold it with property for just north of 1€ million.

Offline Manny

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Re: Property Investment in the FSU
« Reply #23 on: November 30, 2014, 08:06:14 AM »
Baltics: These are still an option, yes just like in 2007 you needed to be there a while ago but there's still money to be made. Buy-to-Let is an option.

I can put you into a nice UK spec apartment near Tallinn airport if you like.

Ukraine: Currently I wouldn't go near property in Ukraine on the off chance Putin decides to invade and makes it all worthless.

There is no chance of a Russian "invasion" in Ukraine, and certainly not outside of the area regarded as Novorossiya if there was.

Online d672

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Re: Property Investment in the FSU
« Reply #24 on: November 30, 2014, 05:16:16 PM »
 Richy Rich:

 Why did you say you would stay away from Bulgaria? I've been seriously thinking about buying a vacation apartment there, maybe next year. So I'm interested in why you say that.

Offline RichyRich

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Re: Property Investment in the FSU
« Reply #25 on: February 08, 2015, 09:53:05 AM »
Richy Rich:

 Why did you say you would stay away from Bulgaria? I've been seriously thinking about buying a vacation apartment there, maybe next year. So I'm interested in why you say that.
Just saw this, apologies for the delay.

I'd stay away from Bulgaria due to the stories I have heard from Bulgarian friends, it'd be better to buy property in Russia than Bulgaria :laugh:

I suppose if you do your research then you'll be okay like with most things.