Features of the real estate market of Serbia
The countries of Eastern Europe traditionally attract the attention of Russians - not far, languages ​​that are understandable and uncomplicated, a significant trace of Russian emigration and unconditional love for…

Continue reading →

Особенности недвижимости на первой линии моря
The purchase of foreign real estate and the concept of “first line” very often go in one set - most of our compatriots want to become the owner of a…

Continue reading →

Real Estate Taxes in Austria: Buying, Selling, and Owning
For ten years in a row Vienna has been ranked first in the world ranking of the most comfortable cities for living, as a result of which the acquisition of…

Continue reading →

How to invest in foreign real estate with a budget of 100 thousand euros

Many of our clients are private individuals with a budget of several hundred thousand euros, who want to invest in real estate abroad. A quick study of the market may seem that this amount will not be enough for a good profitable property: after all, offers of high-quality commercial real estate in Europe usually start from 5 million euros, and small retail premises in popular locations are sold for 3-5 million.

Nevertheless, there are many investment products on the international market with an entry threshold of 100-500 thousand euros: from the purchase of micro-apartments, which bring about 5% of annual rental income, to club transactions in development projects (10-15% per annum).

Before telling in detail about these proposals, I will clarify what we mean by investment. These do not include buying property for your own use (for example, to come on vacation), as well as for a residence permit or citizenship. The investment products that will be discussed here are intended for customers whose motivation is to receive income on invested capital. I do not recommend mixing this goal with others, because different goals correspond to different selection criteria. If you are looking for housing for yourself, then choose such an object and such a location where you yourself will be fine. If you are interested in a “golden visa” or a passport – this is a completely different topic that deserves a separate article. Real estate that you buy for residency will rarely bring tangible income.

If you want to invest in order to preserve and increase capital, then you have a choice of five products:

Hotel rooms, student dorm rooms or nursing homes
Micro apartments and apartments
Apartment renovation
Loan for development or renovation projects
Club deals in development projects
My recommendations are based on the experience of Tranio projects in Germany (Berlin, Bavaria), Greece (Athens) and Spain (Barcelona, ​​Torrevieja). But in other European countries, where the market for foreign investment in real estate is developed, you will find approximately the same conditions for investors.

Residential real estate for rent

The first three products are united by a common strategy: you acquire the property and receive income by renting the property. With such investments, it is better to focus on a tenure of at least 5–10 years, and profitability is at the level of 3-5% per annum. Risks are minimal, and in addition to rental income, you get an increase in the cost of the object by an average of 2-3% per year. This is a conservative strategy, suitable for those whose main interest is to preserve capital and save it from inflation.

The management company is engaged in the operation and maintenance of the facility, and often the settlement of tenants.

1. Hotel rooms, student dorm rooms or nursing homes

The cost of such objects starts from 100 thousand euros, and you can buy both a single room and a block of several residential units. The owner cannot use this property for his own residence, but this restriction is offset by a relatively high yield: at the level of 5% per annum.

2. Micro-apartments and apartments
I recommend buying ordinary residential real estate in large, prosperous cities, and I advise you to pay special attention to micro-apartments, that is, small-sized apartments with an area of ​​20–35 m² and a cost of 120 thousand euros. As a rule, they are sold in new buildings, and the average rental income reaches 4.5% per annum. This format has particular advantages in Germany: in most cases, rental contracts for micro-apartments are medium-term (up to 1 year), so the owner can regularly index rents and easily evict residents if they are insolvent. Conventional-sized apartments (70–80 m²) cost from 300–400 thousand euros and yield a yield of about 3% per annum for long-term lease, but they are more liquid than micro-apartments. In the most advantageous locations – the inhabited central areas of large cities – there are few new buildings, and the main share of proposals falls on the secondary market. If you buy a “secondary housing”, be prepared for the increased costs of its maintenance.

I often have to warn clients who are ready to “peck” at offers with extremely high rental returns (7–10%) and a guaranteed rental contract during the first few years of ownership. Usually this is a sign that the property is illiquid, and its price is overstated at least one and a half times. If you buy such an object, you will actually pay the 10% yield yourself, and after the warranty period, it is very likely that you will be left without tenants, and without a chance to successfully sell the property.

Residence permit in Latvia: basic principles of obtaining
The Baltic States continue to be a popular region for Russian-speaking tourists and real estate buyers, where Latvia occupies a special place - less than ten years ago, obtaining a…

...

Housing in Ulcinj: original Montenegro
Traditionally, when buying property in Montenegro, the Budva Riviera, Tivat, Herceg Novi, Boko-Kotor Bay and the surroundings of Bar are considered - it is obvious that Ulcinj is almost not…

...

Romania Real Estate Market Overview
Romania is a kind of terra incognita not only in the European real estate market, but also in the field of tourism - except for the Black Sea coast of…

...

Results of 2018 in the foreign real estate market
2018 is coming to an end and the Homes Overseas portal sums up the results of the year together with our experts in the foreign real estate market - readers…

...