Best investments in Ukraine 2006
2006 for private investors, having free funds, was successful. Since 1998, when prices for residential real estate were twice dropped, there was possible to purchase one-room apartment for $5K. Now this apartment costs about $80K.
There is 1600% for 8 years and aprox. 60% for 2006 income for real estate deals. Secondly are power plant shares - 90% (and you should exclude 15% for taxes and traders commision). Third most profitable asset is gold brings 35% profit, but there is 10% spread for bank operations.
Talking about real estate pricing I have to say about enourmous growth - from $1350/sq.m at February to $2300 at December (at Kiev for sure). Make note, that is not only income from arbitrage. Most of them using for rent business. So potential income about 70% for 1 year
About stock exchange. Profitabily of mutual funds vary from 11 up to 57 %.
So, in short-term conditions, real estate investments are most profitable and reliable asset in Ukraine.
4 comments:
Здравствуйте, Сергей
Если Вы хотите, чтобы наш блог ссылался на Ваш, я поставлю ссылку.
Надеюсь на взаимность :)
Татьяна.
http://antalax.com/blog/
Не вопрос :)
Another great post and 2 more questions:
1. Can you elaborate just a bit on the power plant shares? How and where are they bought and sold?
2. Is there a possibility of running a successful rental business in Kiev at this time. I'm aware that up to 40% of apartments in the Center are for rent. But, I'm assuming, that most of them are apartments that have not recently changed hands. So is it possible to buy a an apartment or a building and create a ROI comparable to other good investment options?
Thanks
V -
Hello
1. I'm talking about Dniproenergo, Zakhidenergo etc. But my opinion is that assets are very volatility, and it depends form many reason, mainly "inside". Make note also that these shares very often are object for corporate conflict situation. All that reasons depend on prices. You could to get more from stock traders like Dragon Capital
http://www.dragon-capital.com
2. Such kind of business are very intersting and profitable, particularly with increasing trend for asset. But I guess it is most applicaple with
chain with 3-5 app at least. And good managed and providing assitional services as well. I asuume that great mix is 2 or 3 one-room app. and 1-2 top segment app. Day rent is most profitable but and most complicated operation.
For building ROI or IRR we have to know all possibilities for sure.
Regards, Sergey.
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