Investing in real estate is one of the most conservative ways to save money. If you choose the right property and location, you can be sure that your money will not depreciate and will bring a tangible income.
At the same time, it is a way of preserving for many years, not of making a quick buck. Fast turnover can be compared to fast fashion goods, fast fashion. Investments in real estate is not a conditional Zara with disposable pants, it is already a suit from Chanel.
In search of the perfect investment: Bali, Turkey or the UAE?
After all, in addition to the fact that most countries have a limitation on the period of ownership of real estate (that is, you need to be the owner for several years after purchase), to sell the object quickly can be problematic. It's not a stock or currency in a bank app that you can "discount" by pressing a couple of buttons. But, having invested several million in a worthy object can not worry about their safety, liquidity, and get a decent income from renting. In the end, this real estate can be inherited.
Why not Russia?
It is absolutely true that the Russian Federation has one of the most rapidly developing real estate markets in the world. But since 2020, when the privileged mortgage program started working in the country, a strong imbalance has started to form in the Russian market, and it is becoming increasingly difficult to predict its behavior.
It is mainly the market of new buildings that is being pumped up by the program of preferential mortgages. Over the past few years, the cost of housing in Moscow has increased by 50-60%, in the regions not a little less, but everywhere there is a construction boom. Housing of various quality, sometimes frankly low, with violations and defects. But this is only half the trouble. The increase in interest rates is already leading to a sharp drop in demand in 2024, the growth of the down payment cut off a huge number of likely buyers. As a result, the current year for real estate developers in Russia is likely to be marked by a sharp "stop" in sales. According to various estimates, companies that have only accelerated their sites have enough apartment inventory for five years.
It is hard to imagine, but there is a real overstocking in this market. According to the Unified Information System for Housing Construction "Dom.RF", at the end of 2023, the volume of unsold housing amounted to 71.1 million square meters, which is 5.4 million square meters more than a year ago. This is a record high since January 2020, when the figure began to be closely scrutinized. Record launches of new projects and the rapid introduction of a large number of dwellings to the market against the backdrop of declining demand may result in apartments in Russia not only not getting cheaper due to price growth in general, but also becoming less liquid for rent and subsequent sale. According to experts' estimates, price growth will be at least 15% for the year, but with uneven dynamics.
Taking into account the above-mentioned, in the Russian Federation the purchase can be considered only "for yourself", but not for investment, even for a very long period of time.
Where to go?
According to experts, there are three main competitors in the world in the investment real estate market: Bali, Turkey and the UAE. When choosing a suitable option for yourself, you need to consider several factors, in addition to a stable economy of the country and a reliable real estate developer on site. In addition, it is worth studying the nuances of taxation and profitability of the rental market. It is possible to compare these proposals, if only because all countries have a stable almost year-round tourist flow and give the opportunity to earn good money on short-term rentals.
Therefore, let's imagine that the apartment is bought for possible further resale or use for your own residence, but a few years will be rented to tourists.
Visa relaxations to some extent give all countries: in Turkey it is a residence permit, in the UAE - resident visa.
As for taxes, in Indonesia there is a tax on the ownership of real estate (depends on the value of the object), as in Turkey. There is no such fee in the United Arab Emirates.
Taxes in Turkey are levied on rental housing and their level is quite high - from 15 to 40%. There is a tax on resale (from 15 to 35%). In Bali, the conditions are softer - up to 10% for rent and 1% sales tax. In the UAE, the future owner pays 4% when buying. Buy real estate in Dubai, own it, rent and resell will cost much less in terms of taxes than in other countries.
At the same time, it is a way of preserving for many years, not of making a quick buck. Fast turnover can be compared to fast fashion goods, fast fashion. Investments in real estate are not a conventional Zara with disposable pants, but a Chanel suit.
Rental yields depend on many factors, but on average in Dubai they are equal to or higher than in Turkey and Bali. Only in the UAE it practically does not fluctuate throughout the year.
In addition, only in the UAE do transactions take place through an escrow account, negating all risks for investors. Full ownership comes immediately, and the stability of the country's economy and the protection of the buyer's interests make the transaction safe.
If we choose among the three countries, both Dubai and Turkey are the most active in construction. But the volatility of the Turkish lira is much higher than that of the dirham, which is pegged to the dollar. In fact, these two currencies should not even be compared - the dirham has been showing solidity and stability for decades, while the Turkish lira is constant only in its unpredictability.
Ultimately, few countries can match the UAE in terms of security, not so much of capital, but of personal security.
How to conduct the transaction safely?
Choosing a company that will find the best option is not so difficult if you rely on simple signs of successful work. Transparent conditions, known from the first minutes of contacting the company, honest assessment of each object from the point of view of future profitability, a story about disadvantages and possible pitfalls - these are the standards in LUNAMARS.
Here they are ready to provide all calculations in a short time, and the application can be made directly on the site, saving valuable time.
Despite the rapid development of the Russian real estate market, the current imbalance and increasing interest rates are causing a sharp drop in demand, leading to an overstocking of apartments and making them less liquid for rent and sale. On the other hand, investing in property in countries like Bali, Turkey, or the UAE can provide a stable income and preservation of capital for many years, with tax advantages and secure transactions in places like Dubai.
A growing sustainable economy, a mild tax regime and a reliable partner are the key to successful investment and capital growth.
