The Russians were named alternative ways to make money on real estate

IRN: the profitability of investments in service apartments reaches 11 percent per annum buying and renting, according to an article published on the website of the analytical center “Indicators of the real estate market” (IRN). IRN experts named five alternative investment instruments that allow you to earn money per square meter.

The first way to benefit from real estate is to rent it out for daily rent. The profitability of such a business is 10-15 percent if you do everything yourself. If you hire a broker, the yield will drop to 7-12 percent, according to the IRN. The threshold for entering this activity in Moscow is from 12-15 million rubles for budget housing in the center of Moscow and adjacent districts.

The second option is to invest in serviced apartments and apart-hotels. The yield will be 8-11 percent per annum, the entry threshold in Moscow is from nine million rubles. Another scheme is to buy commercial space on the ground floors of new buildings for subsequent lease. In this segment, the profitability reaches 12 percent, the entry threshold in Moscow is from 13 million rubles, in New Moscow – from 10 million. “Commercial space on the ground floors is more expensive than apartments, but in general the budget is comparable, and the profitability is 1.5-2 times higher than when renting out housing,” analysts say.

Experts also advised Russians to invest in mini-formats – small offices and warehouses. The yield on the lease of such areas can reach 20 percent, the entry threshold (in Moscow) – from five million rubles. The last option is closed-end mutual investment funds (ZPIF). The entry threshold is the lowest here – from 5,000 rubles, the yield is up to 40 percent. ‚ÄúThis instrument allows private investors to invest in large quality assets. For example, for a million rubles, you can become a co-owner of the OZON logistics center, “the IRN indicates.

Earlier it was reported that in the third quarter of 2021 the volume of investments in real estate in Russia amounted to 93 billion rubles (one billion euros) – unknown spent almost a third more on objects in different regions of the country than in the same period of 2020.

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