is it possible to got a mortgage in ukraine?

Question

can sumbody help me with the folow?

how much is the max % of the worth of property thats possible to take a mortgage in ukraine?

how much is the APY paid per year?

Sean Almeida · Answer

Another update!

In a press conference last week, President Zelenskiy said that the interest rate for mortgages would "soon" be 10%. Very high by Western standards, but with cap rates in the low teens and plenty of room for price appreciation (comparable properties in other East European capitals are almost twice the price) this figure could be interesting for some investors.

Sean Almeida · Answer

Hi All -  update from the field.

Mortgage interest rates for UAH loans are just now starting to edge down, but they are still mid-to-high teens. However, they are talking about the rates coming down to below 10% in the next year or two.

However, I did hear from one bank that they are offering to loan out 40% of the value of a property only if that property is revenue generating. The manager I spoke with wasn't directly involved so she was not sure what the rate would be if the loan were in foreign currency, nor did she know how exactly the bank would value the property. Real estate here is a notoriously inefficient market, so appraisal prices can vary wildly.

However, we did recently complete one turnkey project on behalf of a buyer and it looks like the gross rental yield is going to be about 15% (assuming we do sign with the tenant next week), and once we are signed I will approach the bank again to get more details.

Will update when I have more details!

Best,

Sean

Tovya Fekete · Answer

its for a investment. a property for a hotel in Uman, a citi that got very busy the last 20 years, with ortodox jews from usa, israel, & europe, & the busyist time is sep. that the avr. for a 2-3 star hotel "bed" (they gave alsa double beds becuose of the over fluinse) is $100 a night, I have their a bargein offer to got shares in a hotel who need to buy more land to grow. so I look for advice from people that have already experience in investing in ukraine.

Chris Mason · Answer

If the property you'd like to secure the mortgage by is in Ukraine, you'd have to talk to a Ukrainian mortgage lender. I'm not sure we have any of those on BP.

Sean Almeida · Answer

In theory, yes, but the rates are still extremely high so effectively all purchases would have to be in cash to make sense.

Andriy Boychuk · Answer

@Tovya Fekete My first investment property was in Ukraine. I still have it. However, I did not get a mortgage in Ukraine, I bought it for cash. The rate is crazy there (25-50%). It is cheaper to get a personal loan in the US.

is it possible to got a mortgage in ukraine?

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