Property News

Go for it!

The X Moscow International Investment Show will take place on March 09-10, 2012 at the TC Tishinka in Moscow. The show organiser aiGroup has invited more than 7,000 potential buyers and investors to whom more than 190 exhibitors will offer their properties and services.

Will it be possible to select and buy holiday homes, residences and other types of property at this show? And will it be possible to acquire commercial real estate?

Yes, visitors will be able to pick out any residence that meets their specific needs: for permanent living, leisure and recreational activities, getting treatment or education. In addition, commercial real estate can also be purchased.

How is this show distinct from regular real estate exhibitions?

This show is a unique chance for ordinary citizens (and businesses) not only to buy family or private residences but also invest money in rental properties. Basically any person buying real estate becomes an investor, but there are certain niceties. For example, an avid fisherman buys a home in a serene riverside locality while a surfer – at the ocean coast where huge waves come rolling toward the shoreline. But the problem is that it is not always possible to rent out such properties and get a fair return. It’s much easier to let housing in capitals and big cities – financial and business centres – where apartments are readily leased by leisure and business tourists. Holiday property can also generate a high rental income. In other words, predilections, tastes, preferences and tempers differ (but may occasionally overlap). This is why it’s so important to know exactly for what purpose you are going to buy a property abroad. When a potential buyer can give a clear answer to this question, it is much easier for real estate agents to choose the most optimal option. An ideal choice for people of means would be buying one property for one’s own use and another one – as a rental income generation vehicle.

Is it possible to get advice at the show and on what destinations?

The experts of participating firms will provide exhaustive information on any subject, including the likely level of property yield in any nation/region/city of the world. Managers of the firms chosen by the buyer will help formalise all papers and visas, organize a fam tour etc. A real estate company may also offer such services as tenant selection and rental management. Furthermore the show participants guarantee clean titles.

What are possible risks?

Risks usually arise wherever an investor seeks maximum return on his or her investment (above 10% per annum), which is not always justified. If the investor is content with a moderate rent there can be no risk at all. For example, in Finland the average annual rental yield is 4-6%. And it’s impossible to imagine that in Finland known for its placid people a crisis similar to that in Libya breaks out one day. Risks are often created by landlords themselves. In their attempts to squeeze as much profit from their property as possible they sometimes artificially overstate the rental rates, thus forcing tourists to opt for a neighboring district or inhabited locality.

What yield can realistically be anticipated?

The property yield depends on several basic factors: the amount of investment, destination, specific region/city/neighborhood in terms of prestige, and real estate quality. Properties sold for 10,000-15,000 euro (a rural holiday home) will bring investors several hundreds euro per annum or several thousands at best. But, say, a luxury villa or estate worth 15-50 million euro – somewhere on the Coast of Azure in France or in Monaco – might bring its owner a monthly rental income from 100,000 to 300,000 euro during the high season.