How to Invest in Ukraine, Kiev, combat high mortgage rates

2 Replies

I'm considering to invest in real estate in Kiev once the situation is cleared up there.

But there are a few hurdles that I'm not sure how to master them.

My situation:
I made around 7 digits on the stock market and I don't have a fixed income and never had, and wont have anytime soon. So the classical personal Mortgage is out of option for me.

I was thinking to create an Ltd. in UK, Buy a property 100% with this Ltd. so that Ltd. would have a fix income and real value so the lender is save.

Would that work in general, if I would try that in the US with an LLC and stay in the US.

to Ukraine.

The current mortgage rates for UAH (their currency) are at 20.50%, inflation is at around 10%. Those are official numbers. So that would be out of the question.

Properties are usually trade in USD.

In my opinion that should create a good market for buyers since the most renters have no chance to buy and have to rent at very high rates.

What are my chances to raise Capital with an Ltd. in UK (or other foreign country) to invest it in real estate in Ukraine?

What other ways are there to make that work.

Is my assumption right that high mortgage rates can be good for Cash 100% buyers?

Hello Ben,

I do not think that anybody would lend you money for a Ukraine RE as long as you are not trying to get a mortgage in Ukraine itself. As you said, interest rates are very high and in that context you either need to take your own money or get private financing.

Beside the money topic, what is your strategy - buy and hold for cash flow, buy to speculate on short term appreciation, etc?

In any event I would recommend that you need a local team that you can trust and that can manage things for your. 

There is a good website called http://www.globalpropertyguide.com/, that u can check to get add info about the country.

I did consider investing in that country as well, but find it difficult as I do not speak their language, so much higher dependency of local people and their translation and overall a still unreliable stage. 

Let me know how you will proceed and we might can have a more detailed chat.

Andreas

Hi Ben. I'm working in Ukraine at the moment and I can tell you there are no mortgages to speak of - not with base rates at 26% (!).

The situation here is very buyer-friendly but you can't use leverage and there are still many unwilling sellers who are "waiting it out" for things to get better. No mortgages = low carrying costs. That said, prices are off 70% from just a few years ago so it's the right time to buy, but you need to do it all cash :)

PM me for more details. 

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