Real estate is the source of your income. How to create passive income in real estate - thinking out loud

Can real estate be a reliable source of income today?

The topic of investment attractiveness of real estate is discussed day by day, in the media and in the kitchens of many families who are considering various potential opportunities to earn additional income. The question that worries many is whether real estate today can be a reliable source of this income and whether it allows you to save and increase investments.

If we talk about the capital, then square meters are always in price. No matter how the economic conditions or currency volatility develop, there will always be a demand for housing in Moscow. Of course, it can move up or down, depending on the income level of the population and its ability to pay, however, as recent years show, it is not the easiest for Russian economy, demand does not disappear and liquid options are always in demand.

The modern market offers various options for potential investors. First, it's a classic hire. Of course, if the apartment was not inherited and a significant amount was invested in its acquisition, it will take a long time until these investments return. The average payback period for an economy class apartment in Moscow is about 18 years. Profitability in the same segment fluctuates in the range of 4-7% per annum, and the more expensive the object, the lower its profitability can be. Therefore, the most cost-effective housing economy class.

As an example, consider a one-room apartment with cosmetic repairs for 7 million rubles, in which another 300 thousand rubles were invested. (acquisition of interior items and household appliances). You can rent such an apartment for about 35 thousand rubles. per month. The cost of utility bills and the amount of tax must be deducted from the income received. As a result, we will see that the return on rent will be no more than 4%.

Higher may be income from short-term rentals. The demand for such a rental is quite high, primarily from tourists who come to see the capital. There are not many hotels in Moscow with affordable prices, but they are well and conveniently located, so renting an apartment for a few days for guests of the capital can be a good alternative. Despite the fact that the cost of a short-term lease is higher than a long-term one, not many owners decide on such a business.

Daily rent is a continuous work for the owner. After each tenant in the premises you need to do general cleaning, change underwear, etc. All these are continuous physical, moral and financial costs. In addition, with daily rent, the risks of property damage and decoration in the apartment increase significantly. And of course, the landlord needs to constantly look for new tenants, since every day the apartment is idle reduces his income.

Some owners are considering the possibility of earning income from renting out rooms. However, there are many of their own but ... Rooms in communal apartments people take pictures not from a good life. First of all, such options are in demand by tenants who want to live in Moscow, but for financial reasons cannot rent a full-fledged apartment. Most, if not all, room tenants have limited financial resources and are driven primarily by the cost of housing. But even so, they try to choose options that are as comfortable as possible, preferably with one neighbor, with decent furniture and plumbing, with a refrigerator and a washing machine. Such offers are also in demand among students who, for one reason or another, cannot live in a hostel.

Of course, some owners try to squeeze the maximum out of the apartment. In our practice, there was a case when one owner without fail wanted to rent his apartment to eight people at the same time and planned to charge rent in the amount of 15 thousand rubles from each. per month. True, his wish did not come true, since there were no tenants who agreed to such conditions.

As for such a popular topic today as organizing a hostel in an apartment, now the State Duma is actively discussing this segment, and it is not yet clear what the authorities will eventually come to, what rights and restrictions will appear for owners who want to organize this business: will it become mandatory to transfer the apartment to a non-residential building with a separate exit, will it be necessary to hold a meeting of all residents of the house before opening the hostel, etc. However, in any case, it must be borne in mind that organizing a hostel is, in fact, a kind of hotel business , which requires, first of all, investments, both financial and temporary.

In order for it to become a successful and truly hostel in the European sense of the word, the facility must be attractive to visitors, comfortable, equipped with modern technology and air conditioning systems, have an interesting and convenient location for tourists, offer service and services, and its activities should not interfere with life. neighbors. This means that you will have to make considerable additional investments, realizing that the payback period of such a business cannot be predicted in advance.

In general, investments in real estate, as, indeed, any investment, cannot guarantee anyone lightning mountains of gold and untold wealth. However, the main advantage is that this is a completely different way of saving funds, reliable and stable, especially given the risks of the banking sector. Therefore, we can say that such investments are relevant in the Russian market, and especially in Moscow, where there will always be demand for housing.

Read more on RBC:
https://realty.rbc.ru/news/5b15198e9a79471a92ed7924

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Real estate economics

Introduction

The economy is the process of producing material goods in conditions of limited resources.

Real estate economics is that part of the overall economic process associated with the production of real estate (the exception is land).

The legal concept of real estate is the registration of property rights.

Real estate, satisfying the needs of a person, can be used in 3 ways:

1. Since real estate has utility - this is the ability of a thing to satisfy human needs - then real estate is an economic good.

2. As a source of income - real estate brings income to the owner in the form of rent. A distinctive feature of this type of use of real estate is that there is no change of ownership.

3. When real estate acts as a commodity bringing a one-time income to the owner.

Economic characteristics of real estate

1. Any real estate is a thing, a tangible asset, consisting of an inseparable unity of a land plot (things of nature) and a building or structure (products of labor).

2. Real estate has the maximum utility among other benefits.

3. In addition to material needs, real estate is also able to satisfy spiritual needs.

4. By virtue of its continuous use, real estate is unique in comparison with other goods.

Specific features of different ways of using real estate

Usefulness of real estate. Using real estate as an economic good, only one need is satisfied - the need for housing. But it can be satisfied in 3 forms:

1. acquisition of housing in the property;

2. rent;

Hiring is a social housing benefit that allows you to meet the needs of people with low incomes.

Real estate as a commodity manifests itself in 2 aspects:

1. an object (property) can be a commodity;

2. The product is a service (rent, hire).

Real estate, acting as a commodity, has a number of features:

1. the definition of rights and their boundaries is required;

2. real estate investment (risk, profitability, time factor);

3. any property is unique (location);

4. real estate is characterized by high capital intensity;

5. real estate is a commodity at any point in its life cycle;

6. quantitative discrepancy between the qualitative characteristics of an immovable object and an immovable product.

Real estate as a source of income. The income brought by the real estate object has a rental character for any real estate other than industrial. For industrial property, it acts as a factor of production, and not always the main one. That is, real estate belongs to the fixed assets of the enterprise and transfers its value to manufactured products, and, consequently, to the profit of the entrepreneur in parts (depreciation).

Real estate is a special investment commodity.

Investments should be understood as long-term investments of funds for the creation of a new facility, reconstruction or modernization of an existing one with the aim of subsequent return on investment and income generation.

According to Russian legislation, investments can be:

· cash;

· securities;

other property, including property rights or other rights having a monetary value.

1. Components of a real estate development project

I. Project initiation. The project initiator can be:

the owner of the object, who is interested in increasing the value of the object due to its qualitative transformation;

An investor looking for the most profitable investment funds;

· a developer who is looking for a sphere of application for his capital and professional activity on the basis of market knowledge, the most promising areas of its development, the level of demand, competition, as well as the prospects for the development of a particular region.

II. Initiative evaluation. Arising as a result of comparing the potential of the market and the potential of the object, the initiative, before being implemented, is subject to a preliminary assessment, which includes physical feasibility, the existence of legal and financial terms for the implementation of the project and after, taking into account these opportunities and limitations, the effectiveness of the project is determined. In most cases, efficiency is considered commercial.

The evaluation of an initiative has two aspects:

1. Assessment of the state of the market and prospects for its development;

2. Estimation of the location of a potential object.

At this stage, the main guideline for making a decision to work on the project is the assessment of the most probable profitability of the object. The level of this profitability is determined depending on the reasonable ideas of the future owner for a given market segment and region. The idea of the required return varies significantly depending on the assessment of the initiative, and varies significantly for different projects. In the general case, this period is calculated in months, but objects that require years are also possible. Financial costs for these stages are estimated at 1-3% of the total cost of the project.

III. Ensuring legal opportunities for project implementation and development of financing schemes. After the decision on the feasibility of the project is made, practical actions for its implementation begin:

1. Creation of legal conditions to give legitimacy (legality) to the development process and create a system of legal guarantees for all participants in the process;


A. Choice of project and location
1. Determining the property legal status of a place or object (committees for the management of city property, the city bureau for registering rights to real estate, committees for the protection of historical monuments, administrations of districts or municipalities)	2-4 weeks
2. Preliminary calculation of loads	1-2 weeks
3. Obtaining preliminary technical conditions for power supply, water disposal, water consumption, heating	2-4 weeks
4. Coordination with the State Committee for Ecology
5. Development of urban planning documentation	6-8 weeks
B. Obtaining architectural and planning assignments and ordering pre-project documentation
1. Coordination of pre-project documentation in interested departments	2-4 weeks
2. Evaluation investment projects	2-4 weeks
3. Coordination of the draft investment agreement with KUMI, the land management committee, the construction committee	up to a month
4. Submission of a package of documents to the secretariat of the city investment tender commission	up to a month
5. Decision of the city investment tender commission	2-4 weeks
6. Legal Department administration of the city or municipality
7. Order of the head of the city or municipality on the provision of a land plot on investment terms	up to a month

If auctions are made for the sale of a building plot, these terms increase by 2-3 months. In addition, in the process of obtaining the right to build, a public hearing may be held, in which specialists and residents of the located area take part.

2. Elaboration and preliminary selection of a financing scheme.

IV. Preparation of a feasibility study and design. This stage is the most important, because it determines the parameters of the future object, and they accordingly affect the costs of the project.

When organizing design work, attention should be paid to:

· When issuing a design assignment, source materials and documents must be provided, including justifications for investments, approval by state authorities of the location of the facility, technical conditions for connecting the facility to engineering networks and communications;

· The projected object must satisfy not only urban planning standards, but also market requirements, that is, meet the expectations of consumers in terms of architectural and planning solutions, materials used, as well as the financial capabilities of the consumer.

Expenses make up 6-10% of project costs.

V. Coordination of the project with the authorities state control. This procedure implies a state examination of urban planning documentation, a feasibility study and a detailed design prior to their approval by the project customer. Obtaining a positive expert opinion serves as the basis for approval of the documentation and makes it possible to obtain permission for the production of construction and installation works.

VI. Formation of a system of contractual obligations by a participant in the implementation of the project. This stage covers all project participants and regulates them:

1. Project financing;

2. Performance of contract work;

3. Implementation of the created object.

At this stage, contracts are concluded for participation in project financing with financial and credit institutions, with private investors or future consumers, tenders are held and contracts are concluded with contractors, and agents for the sale or rental of real estate are involved.

VII. Project implementation. The main task of this stage is to carry out real estate development works with the required quality, cost and speed. The result of this stage is a new real estate object, the actual creation of which must be confirmed by an act of acceptance of the object into operation, on the basis of which the right to the newly created object can be registered. This stage is the most costly in terms of time (up to three years) and finances (60-70% of costs).

VIII. Managing project results. At this stage, the registration of ownership, the transfer of the object for management, rent, sale. Since the object is not registered as a real estate object in the BTI and the rights to it are not registered in the state registration authorities, the object does not legally exist and therefore cannot be an object of market turnover.

2. Sphere of business activity - selection criteria

The selection criteria are:

profitability;

liquidity.

When evaluating these criteria, statistical indicators are used that are prepared by professional organizations, both for specific customers and for general use.

All these indicators can be formed into 4 groups:

1. Volumetric indicators - sales volume by market segment, by type of buyers; volume of proposals, including potential ones by market segments; the amount of unoccupied space; the volume of investments in a particular market segment; provision of consumers with real estate objects;

2. Price indicators - rent level (min, average, max), price level (min, average, max);

3. Indicators of return on investment - the rate of return on the real estate segment and on the regions;

4. Dynamic indicators - the dynamics of the indicators listed in the first 3 groups.

Having studied the regional real estate market, the area of business activity is selected and the direction for further and more in-depth analysis of the situation within the selected segment is determined.

For example, when choosing the scope of business activity between residential and commercial real estate.

Characteristic	Residential Properties	commercial real estate
Dependence on the state of the regional economy
Liquidity

Main type of operations	buying and selling, renting, hiring
Opportunity to attract external financing

The table shows that residential real estate is preferable, but at the same time, the level of competition in this segment is quite high. That is, the limited capacity of the mass housing construction market leads to the fact that leading construction companies begin a policy of self-restraint, for example, on luxury housing or housing for the middle class. This differentiation indicates a gradual saturation of demand in the primary housing market with a shortage of commercial real estate, in particular retail. In other words, changes in the share of various sectors in the economy lead to an increase in demand for certain types of real estate, and this is reflected in changes in the requirements for the characteristics of real estate.

All general trends in the development of the economy are superimposed on the state of a particular regional market, taking into account its characteristics. The search for development opportunities inevitably leads the developer to the problem of choice, the content of which at different stages of development of the property looks like this:

Stages of project implementation		Criterias of choice	Tools Used
Project initiation	Market Segment Selection	Profitability, risks, liquidity	Market Opportunity Research
Initiative Evaluation	Project selection	Physical capability, legal affordability, financial feasibility and accessibility, cost-effectiveness	Project Opportunity Research
Providing legal opportunities for project implementation and development of financing schemes	Choice of financing scheme and source	Reliability, availability, cost of credit	Analysis of the interests and opportunities of investors
Preparation of a feasibility study and design	Selection of pre-project solutions, technologies, clarification economic characteristics project	Compliance of the project with modern market requirements, minimization of costs	Comparative analysis of project proposals, economic analysis of the project
Coordination of the project with state control bodies	Choice of solutions to achieve the required project parameters		Changing design decisions
Formation of a system of contractual obligations by a project participant	Selection of financing mechanisms and selection of contractors	Financial sustainability, cost of resources, cost minimization, timing, quality	Use of a range of funding sources and contract bidding
Stages of project implementation		Criterias of choice	Tools Used
Project implementation	Choosing a way to manage the progress of the project implementation	Compliance with deadlines, quality and level of costs, providing financing	Attracting engineering firms, working with investors
Project results management	Choosing a way to promote an object to the market, organizing sales	Maximizing sales revenue and minimizing lead times	Attraction of real estate firms, creation and organization of sales services

When researching the market, past trends and their possible changes and the influence of existing and new factors on supply and demand in the market must be taken into account. A study of the potential of the supply and demand market, market capacity determines the investment attractiveness of the selected market segment and is a necessary condition for the further movement of the project, after which the next stage is worked out - the search and selection of a specific real estate development project.

3. Main approaches to project expertise

Part of the evaluation of the investment project is reduced to the calculation of quantitative indicators determined by the ratio of costs and income. But before quantitative indicators, the project needs a qualitative assessment, which is checked and refined by calculations of quantitative characteristics. That is, in the process of project evaluation, there are 2 stages And:

1. Assessment of the possibilities and expediency of the project being implemented;

2. Calculation of economic indicators characterizing the project.

Under the expertise of a real estate development project, one should understand the assessment of the project proposed for implementation in terms of its physical feasibility, legal admissibility, financial feasibility and accessibility.

The physical feasibility assessment assumes physical feasibility, taking into account the location, spatial parameters, the state of the infrastructure, technological characteristics, available construction opportunities and the impact of these opportunities on project parameters, costs and implementation time.

The assessment of legal admissibility includes determining the possibility of reaching agreements with the land owner on the conditions for involving the land plot in the real estate development process, the compliance of the nature of the proposed project with the existing land use rules.

Assessment of financial feasibility and feasibility involves determining the potential revenue from the implementation of the project, the possible level of profitability, periods of receipt and outflow of funds. And on this basis of the sufficiency and expediency of investing own funds in the project, the possibility of attracting external sources funding and the ratio of different sources of funding as the project progresses.

Examination of the physical, legal and financial aspects of the project is carried out in comparison with alternative options:

· other possibilities of the land plot;

the location of the proposed project.

Particular attention in the examination and selection of projects due to the specifics of real estate is given to the analysis of the location of the object. Unlike investment projects related to the creation or expansion of production facilities, for which location is always a cost factor, for non-commercial real estate development projects, location is a factor that affects not only costs, but more importantly, the income that the object being created can bring.

Therefore, when analyzing a location, consider:

1. The value of the created real estate from the point of view of its consumer;

2. The cost of creating real estate;

3. Operating costs.

When analyzing location, a distinction should be made between geographic location and economic location.

Geographic location is the attachment of a property to certain topographical characteristics.

Economic location is the location of a property in relation to factors that can affect the benefits and costs associated with a property, and therefore affect its value in the eyes of the user, and therefore the cost.

Real estate objects can be completely different in geographical location and close in economic and vice versa. At the same time, the pros and cons of the location are directly related to the purpose of the property, so a good location is the optimal location of the property in accordance with its functional purpose.

According to foreign experience, when analyzing the situation of a shopping center, the key questions are:

1. Availability;

How well does the new project fit with the landscape?

· Are there appropriate transportation networks available to the prospective buyer?

· Is there enough foot traffic past the proposed store to generate commerce?

· What is the relationship between the chosen location, other malls and the public visiting the store?

2. Competition:

· Does the potential store have direct competitors?

What share of buyers can be taken away from them?

3. The level of provision with trade services in the territory:

· What is the current level of provision with retail space?

· What is the level of income and expenses in the retail trade in this area?

· Is there a significant proportion of department stores?

· How many newly created stores are there in the area?

4. Capacity:

· What is the population and employment trends in the area?

· What is the attitude of the local authorities to the development of the shopping center?

5. Availability of jobs, employment structure and their prospects.

6. Competing and additional objects.

7. Pedestrian and passenger traffic.

Impact of location on costs

This is due to the costs that arise during the construction of facilities in new areas where there are no necessary engineering structures and communications. In addition, costs can also increase in areas with a high building density, because the use of equipment, the organization of entrances, and warehousing are difficult. As for residential real estate, regulatory requirements (distance between houses, wind rose, etc.) should also be taken into account when analyzing the location.

4. We build on the ground

When analyzing a land plot, it is important for the development of real estate to determine the sufficiency of its size for the implementation of a particular project and to achieve the optimal ratio between the contributions of land, labor and capital to the object being created. For each land use option (residential or commercial real estate and their varieties), there are certain optimal ratios between the contribution of land and non-land factors - the land use factor (KIT) - this is the ratio of the building area to the land area:

1. For residential property:

Individual houses - KIT=0.1x0.25;

semi-detached houses - KIT=0.5h1.5;

Multi-storey (up to 5 floors) houses - KIT=0.7h2;

Buildings over 5 floors - KIT=2.5h5;

high-altitude - KIT = up to 12;

2. For commercial real estate: KIT=0.5h12.

Despite the large range, practice shows that for shopping centers the maximization of income per unit area, all other things being equal, is achieved with 2 maximum 3-storey buildings.

However, the possibility of replacing the contribution of land with the contribution of capital can also have a negative value:

1. With the excess of a certain limit (5 floors), the total cost per unit of usable area increases (expensive construction equipment is required, optional equipment, lifts). In addition, operating costs also increase (the larger the area, the greater the heat loss).

2. An increase in the number of storeys can become a factor that reduces the value for potential users.

3. The height limit may be determined by the zonal regulations of the territory or other urban planning standards.

4. General algorithm for selecting and evaluating a project

The main mistakes in the evaluation of investment projects

1. Underestimation of investment costs due to the exclusion from their composition of the increase in the need for working capital, as well as the costs associated with the organization of sales, payment of consultants and other indirect costs.

2. Formulation of assumptions about the effectiveness of the project to obtain realistically substantiated analyzes and conclusions.

3. Failure to take into account ongoing and possible changes in the dynamics of supply and demand, competition in the market.

4. Lack of proper market analysis when preparing a conclusion on project profitability forecasting.

5. Insufficient explanation for an apparently large discrepancy between current or recent sales prices for similar properties.

6. Overly optimistic forecasts regarding sales prices and rental levels.

7. Insufficient justification of the discount rate.

Types of real estate for investment

The activity of investing money in real estate in order to increase capital is called investing. For investment purposes, I distinguish two main classes of real estate:

Residential Properties
commercial real estate

Residential Properties is a property that is intended for a long-term or permanent residence of people. Our houses and apartments are real estate.

commercial real estate is real estate that is used by people for any commercial activity. For example, the land on which a plant stands, a warehouse complex, a bank, a restaurant, a pharmacy, shopping and entertainment and office centers, etc.

The most common type of investment for the common man is investing in residential real estate which is for rent. Everyone has a friend who rented, rents or rents an apartment. At the same time, most of the apartments that are now rented out are the surplus that forms in Russian families after accepting an inheritance. There are still not many investment apartments on the rental market. But every year, due to the above reasons, there are more people who buy apartments for rent.

Investing in commercial real estate is not as popular as investing in residential real estate. Because of the complexity of acquisition, management. Investing in commercial real estate is a whole business. Whereas investing in residential real estate is perceived by many as saving money.

The Best Ways to Invest in Real Estate in 2020

In 2020, buying a property is not the only way to invest in real estate. Today there are several ways to invest in real estate for a person with any income. It is not necessary to have several million rubles to receive income from rising property prices and rental payments.

However, the most popular and reliable way Investing in real estate is still considered to be an acquisition of property. I propose to consider this method from the point of view of investing in residential and commercial real estate.

Investments in residential real estate

I distinguish two ways to earn income from investments in residential real estate:

Purchase of an object for rent;
Buying an object for resale.

An apartment for investment in order to generate rental income should be chosen according to two main parameters: price and location (location). The payback period of investments in real estate depends on the purchase price of an apartment and its location.

I believe that it is not necessary to focus on your taste and emotions when choosing an apartment. You may like an apartment in a quiet green courtyard, not far from a park or forest. But the same option is located far from the main transport routes and/or centers of attraction for the economically active population.

Location for rent is a very important factor. Even the price can fade into the background. An apartment for rent with a good location will allow you to avoid downtime. It will always be in demand by tenants.

Who rents the property? Mostly they are young people under 35 (single or couple). Families with children do not often live in rented apartments. Therefore, chasing the area and the number of rooms when choosing an investment object is not necessary.

Young people are students or young professionals starting their careers.

They are not ready for hours to get to the place of lodging for the night using several modes of transport with transfers. Therefore, I single out several objects of socio-economic infrastructure, near which it is necessary to look for an apartment for investment. The apartment must be located 30 minutes to these objects.

Universities. The USE system is now in place. A student from any small town and village can become a student of any Russian university. There are students (parents) who can afford to rent separate housing instead of a place in a hostel. In addition, now students are already starting to work early. Therefore, for the purpose of renting, you can invest in real estate, which is located in cities where there are prestigious universities of federal and regional significance.

large enterprise with a lot of young staff.
City center. The business and cultural life of cities is concentrated in the center. The largest shopping and entertainment centers, offices of banks, insurance companies, and authorities are located.
Underground(relevant for large cities). This is a universal object. It is important that you can walk from the apartment to the metro station in 5-7 minutes. At the same time, it is desirable that these are not end stations where there are no objects of socio-economic infrastructure (university, enterprises, large shopping and office centers, city center).

Purchase price of an apartment for investment is also important. But, as I said above, you can overpay for a good location. I recommend taking your time unless you expect more economic shocks. You must select the region of purchase. Estimate the price level for the desired options. And look for a discount from market prices by 10-15%. He will definitely show up. Because life goes on. People may have different reasons for the urgent sale of an apartment (divorce, moving to another region, illness, inheritance, etc.). But if there is no time to wait, then the decision is yours.

The state of the object. It is desirable that the apartment does not require repairs. Once purchased, you can return it immediately.

Return on investment in residential real estate

Rental income 3-4% per annum of the value of the object. This is net income minus taxes, insurance, maintenance costs and current repairs.

Income from rising real estate prices in the long run at the rate of inflation or significantly higher at the time of growth of the economy and demand for housing.

Pros of investing

The owner receives the rent regardless of the value of the property. Passive income.
There are no capital management costs. Even if you rent an apartment through an agency, the tenant pays the commission.

Cons of investing

Low liquidity . Selling an apartment quickly will not work. It takes time to view, organize transactions and state registration.
Risks associated with tenants that can damage the apartment. Will need repairs to pass it next.

Investments in new buildings

Resale of an apartment for the purpose of generating income is a more profitable way of investing, but also more risky. To maximize income, you should purchase real estate under construction. In this way, in 1.5-2 years you can get an income of 20-30% per annum.

But such high returns come with risks. Macroeconomic risks and construction risks. If the economy is doing well. Then people have a lot of money. Part of the savings goes to the real estate market. People begin to think not only about what they will eat tomorrow, but how and where to live. When people are confident in the future, they willingly take out a mortgage to purchase a home.

If the country's economy is facing difficulties, then the housing market and prices begin to stagnate and fall. Developers may have problems with financing construction and completion of construction projects. And instead of receiving income, you will receive the status of a deceived shareholder.

Return on investment in new buildings can be estimated at the level of 15-20% per annum.

Advantages of investing in new buildings

Potentially the most profitable way to invest in real estate.

Cons of investing in new buildings

risks of failure to achieve target profitability indicators or a decrease in the value of real estate at the time of the economic crisis;
Risks of delays in project implementation.
The risk of bankruptcy of the developer.
Low liquidity of investments.
Large starting capital for investment.

Purchase of investment commercial property

For a private investor, the purchase of objects that are suitable for "street retail" is available. These are small premises (up to 300 square meters) in residential and non-residential buildings that can be used for commercial activities.

Of course, now it will not be possible to buy a space for a boutique on Tverskaya Street in Moscow for several thousand US dollars, but there are other options. Now there are many large-scale projects for the construction of new microdistricts in large cities. It is necessary to choose a promising development project and buy non-living premises from the developer or an apartment on the ground floor. After the construction is completed, rent these premises to shops, pharmacies, banks, etc.

Yield: 8-15% per annum.

Pros of investing

No money management fees.
Formation of passive income.
The maintenance and repair of the premises is carried out by tenants.

Cons of investment

Large starting capital for investment.
Low liquidity of investments.
The need to register an individual entrepreneur or create a legal entity.

Acquiring ownership of premises in apart-hotels

A relatively new way of investing in real estate is the purchase of residential premises in apart-hotels. An apartment hotel is a hotel where rooms are rented to guests for at least one month. The rooms are furnished like apartments. There is all the necessary furniture and household appliances.

Owners of rooms in apart-hotels are offered income programs. For a certain fee, the management company undertakes to provide search and verification of landlords, collection of payments and full technological maintenance of the premises. The amount of remuneration is up to 20%.

Yield: up to 8% per annum

Pros of investment

Formation of passive income;
The ability to personally not engage in the search for clients and maintenance of the premises.

Cons of investing

Large starting capital for investment.
Real estate management fee of the management company (MC).
It is impossible to control the activities of the management company aimed at obtaining maximum income.
Low liquidity of investments.

Collective investment in real estate

You can invest in the real estate market not only with amounts of several million rubles or taking a mortgage. A private investor in Russia can invest in Russian and foreign real estate through mutual funds (UIFs). The minimum investment amount is 1000 rubles.

Some Russian management companies, for example, OTKRITIE Management Company and Uralsib Management Company, have created open mutual funds (OPIFs), where the shares of REIT funds that invest in the construction and operation of real estate in different countries of the world are purchased with the money of shareholders. Both open-ended investment funds are acquiring shares (shares) of a foreign investment fund, which is an open-ended SPDR Dow Jones Global Real Estate index fund managed by SSgA Funds Management, Inc.

The minimum amount of investments in the OPIF URALSIB Global Real Estate is 1000 rubles. And in the OPIF of the funds "Opening - Foreign Property" - 5,000 rubles.

For investments in Russian real estate, management companies form the closure of mutual investment funds (ZPIF). The minimum investment amount is 300,000 rubles.

Unlike open mutual funds, shares of closed mutual funds cannot be bought or sold on any business day. This is logical. management companies form a fund to finance a real estate project. Construction of a residential building, a logistics complex, acquisition and leasing of retail and office space. These projects take several years to complete. Therefore, real estate closed-end mutual funds are usually formed for a period of 3-5 years. The shareholder during the life of the fund cannot withdraw his money by contacting the management company. You can sell or buy shares of real estate funds on the stock exchange. The liquidity of shares on the stock exchange is low, and in order to sell most of the shares, you will have to sell below the appraised value.

Closed-end real estate mutual funds are formed by a subsidiary of Sberbank - Sberbank Asset Management and many other management companies.

Management companies take money for management from 2 to 5% of the amount of the fund's net assets, regardless of the result of work, from the shareholder of open-end mutual funds and close-end mutual funds. The unit price already includes these costs for the investor.

Yield: for 3 years +129.3%, for 1 year +9.28%, for 6 months -4.16% (on the example of Otkritie - Foreign Property OPIF funds).

This ruble yield is due to the fact that shareholders' money is used to buy US dollar-denominated shares of the SPDR Dow Jones Global Real Estate exchange-traded fund. The Fund invests in shares of companies included in the Dow Jones Global Select Real Esta te Securities In dex index, which includes 208 shares of real estate investment trusts from 23 developed and developing countries of the world.

Advantages of collective investment in real estate

minimum initial equity.
High liquidity. You can apply for the sale of units on any business day.
Protection of investments from the devaluation of the ruble.
Diversification of investments by country.
You do not need to contact foreign brokers to be able to invest in foreign assets.
Tax incentives for holding shares for more than 3 years.

Cons of collective investment in real estate

currency risk. With the strengthening of the ruble, the value of the share falls.
The management fee of a Russian management company, regardless of the result.
Fee for the acquisition and redemption of units.

Investments in closed-end real estate investment funds

Yield: up to 15% per annum.

Advantages of investing in real estate mutual funds

A small amount of initial capital - 300,000 rubles.
No need to personally manage the property.
Opportunity to invest in different segments of the real estate market (new buildings, rentals, commercial real estate, hotels, retail, office space, warehouses).
Passive income (rent-oriented funds).
Resolving key issues at the general meeting of shareholders.

Cons of investing in closed real estate mutual funds

Long refund. Up to 10 years.
Management fee regardless of the result.
Low liquidity. Possibility to sell shares only on the stock exchange.
The risk of bankruptcy and fraud management company.
The risk of using shareholders' funds for other purposes.

Opinion on investing in real estate

Since real estate is the most reliable way to save money, I believe that every investor should invest part of the capital in real estate. First of all, you need to focus on investing in rental real estate.

For investment, I am considering acquiring the ownership of an apartment for subsequent rental. It is very important to buy an apartment in the right place - location. At the same time, it should be borne in mind that due to low liquidity, you should not buy an apartment for all your savings, and even more so, you should not take a loan. In a certain period of time, the cost of an apartment may be lower than the purchase amount due to the economic situation in the country. But having passive income in the form of rent will be of great help to you and your family.

With the increase in total personal capital, I will consider other ways to invest in real estate. Investments in real estate mutual funds are very interesting. They allow you to invest in different segments of real estate. At the same time, it is worth investing in funds that are formed by well-known and large management companies that are part of the largest financial groups in the country. For example, Sberbank.

Making money in real estate is not easy and requires a lot of preparatory work. Accumulation of primary capital, taking into account macroeconomic factors, knowledge of the features of investing in a particular type of real estate.

Today real estate income increasingly makes people financially independent! In addition, with this type of income, you can fully devote yourself to doing what you love, not to be squeezed in a vise and driven into a corner by the constant need for daily bread.

Owning profitable real estate allows you to be liberated to some extent and do something that brings true joy and fills life with meaning.

REAL ESTATE GENERATES INCOME!

Who would not like to have a passive income that steadily fills our pockets, regardless of whether we are working or relaxing? So, profitable real estate is the most reliable source of such income. You can invest in all kinds of stocks, bonds, securities, invest them in gold, platinum, financial pyramids and the like. You can even not invest them anywhere, but store bundles of money at home, stuffing all your old socks with cash, absolutely rightly trusting no one and nothing.

In terms of security, all these methods of preserving money cannot be compared with the reliability of real estate, which, in addition to direct capitalization, is also capable of generating monthly income for its owner.

The apartment can be robbed, it can burn down with all the socks together. And how much can you trust that, having invested your hard-earned money in all kinds of securities, you will not only earn at least some profit, but at least not lose your investment in an instant?

Unfortunately, all these types of investments in terms of reliability, today, cannot be compared with investing free funds in real estate, which is able to provide a fairly reliable and stable income. The securities market, which has not yet developed in our country, is not yet capable of guaranteeing anything.

Nothing can happen to real estate, unless aliens come and "expropriate" it for their own needs. And since the likelihood of such a development of events is practically zero, at least in the foreseeable future, then investing in real estate, at the moment, is the most reliable and reasonable investment.

If, for example, you are the owner of your own, then you are well aware that in some month there may not be any profit at all, depending on the type of business, but real estate for rent will bring a guaranteed income at the end of the month. Wherever you work hard, you know perfectly well how sometimes you want to spit on all worries at least for a while, go somewhere, relax, not think about your work.

Even if you skip a whole month, then at the end of this period, real estate will bring income, which will allow you not to be nervous because doing nothing can lead to significant financial losses. No matter how “splendid” the government benefits us with a pension, you must agree that by renting out an apartment or office property, you can have at least a second pension every month.

What should you pay attention to? You should not buy a few cheap apartments on the outskirts of small towns, hoping for a modest but stable income. To whom is it to be handed over? This is not an investment, but burying money in the ground. It is much more efficient, in every sense, to be the owner of real estate in big cities where business is developing, where they get, where crowds of visitors need to live somewhere.

Real estate in a big city can always be profitable to rent! It cannot be compared with the possession of a dozen small-sized "Khrushchev", dilapidated sheds, huts and chicken coops somewhere in the outback.

From real estate income, for rent, you can live, if not clover, depending on the area of \u200b\u200bthe city in which it is located, but at least this makes it possible not to end up with empty pockets in a situation where, for various reasons, we are somehow time did not work anywhere.

9. Cost approach to real estate valuation, its economic content, scope, advantages and disadvantages.

4. Management of systems of real estate objects of the Federation:

Question 16. Real estate as an economic and socio-legal category. Property relations regarding real estate objects. Real estate as an economic good performs the following functions:

Question 17. Real estate objects: concept, classification, categories.

19. Operations with real estate in the housing sector, types of housing stock. Methods of acquiring housing and ownership of housing.

20. Organization of the sale of property through tenders, auctions, corporatization.

21. Bodies of state registration of real estate, their functions and tasks. The procedure for registration and registration of transactions with real estate.

25. Features of the valuation of income-generating real estate. capitalization of income.

26. Valuation of real estate in a market economy, its importance and stages of development.

27. Estimated activity in the real estate market. Principles and stages of the real estate appraisal process.

28. The concept and factors that determine supply and demand in the real estate market. segmentation of the real estate market.

29. Intermediary activity in the real estate market: main tasks, functions, operations

30. Offer in the real estate market. Factors that determine the volume of supply in the real estate market.

32. Privatization of state and municipal real estate

33. Sale of construction in progress, features of pricing, terms of sale.

37 Question. The system of state bodies of management and regulation in the real estate market

38. Demand in the real estate market and features of its formation and manifestation.

39. Comparative approach to the valuation of real estate, its content, scope, advantages and disadvantages.

40. The cost and price of real estate and their determining factors.

41. The value of the property (it): the concept, types, principles of evaluation.

42. Structure and main categories of the real estate market.

43. Subjects, types and functions of the real estate market and their characteristics.

I. By type of goods:

45. Technology, concept and procedure for the purchase and sale of housing, exchange, donation, inheritance.

48. Functions of the Agency for Property Management in transactions with real estate, which are in state ownership.

49. Characteristics of the types and forms of ownership of real estate, subjects and objects of ownership.

I. By type of goods:

1. specific OH

2.construction and reconstruction works

3.mediation and valuation

II. By use:

2. non-residential

4. enterprises

III. According to the quality of OH:

standard

IV. By price:

very high

V. For investment motivation:

1. basic business conditions

2. investment for profit

Members:

Sellers - own funds, authorized bodies, competitive management.

Buyer - entity, investor, foreign state and person.

Professional institutions - market intermediaries, brokers, appraisers, etc.

State bodies - BTI, committees for state property management, arbitration court, tax inspectorate, institutions of the Ministry of Justice, bodies of subjects.

Syndicators - individuals having monetary and other property capital, uniting for joint activities.

Investor - a legal or natural person who purchases mortgage-backed securities imitated by lenders or secondary market operators. These include investment funds, insurance companies, mutual funds. Contractor - a party to a work contract; a specialized enterprise that undertakes, under its own responsibility, to perform certain work on the instructions of the customer using its own materials or materials of the customer for a certain fee. Developer - a person who, in accordance with the established procedure, has been provided with a land plot for the construction or reconstruction of a real estate complex. In the Russian Federation, developers can be: - individuals or legal entities; - bodies of state executive power and local self-government; or - a group of persons acting together.

The real estate market in the national economy performs the following functions:

effective solution of social problems related to the creation and use of useful properties of real estate;

alienation of full or partial ownership of real estate from one economic entity to another and protection of his rights;

free formation of prices for objects and services;

redistribution of investment flows between competing types of real estate objects;

redistribution of investment flows between competing ways of using land.

44. Essence, composition, classification and main features of real estate. Real estate as an economic good, commodity, source of income.

Immovable things are constantly in the same place, have individual characteristics and are irreplaceable. In accordance with the Civil Code of the Russian Federation Art. 130 of the Civil Code of the Russian Federation, real estate (real estate, real estate) includes land plots, subsoil plots, isolated water bodies and everything that is firmly connected with the land, i.e. objects that cannot be moved without disproportionate damage to their purpose, including forests , perennial plantings, buildings and structures. A characteristic feature of most properties is their inextricable connection with the land, which is why they usually have an increased value. Outside the connection with the land, the relevant objects, for example, trees grown in special nurseries for subsequent planting, structures for the assembly of a residential building, etc., are not considered immovable things. The same applies to real estate and is subject to state registration of aircraft and sea vessels, inland navigation vessels, space objects (artificial satellites, spacecraft, orbital stations, etc. Recognition of their real estate, which is typical for the civil legislation of many countries, is due to the high the cost of these objects and the associated need for increased reliability of the rules for their civil circulation.

A special object of real estate is an enterprise as a single property complex used for entrepreneurial activities (Article 132 of the Civil Code of the Russian Federation). The structure of the enterprise as a property complex includes all types of property intended for its activities, including land plots, buildings, structures, equipment, inventory, raw materials, products, rights of claim, debts, as well as rights to designations that individualize the enterprise, its products, work and services (company name, trademarks, service marks), and other exclusive rights, unless otherwise provided by law or contract.

All other things that are not directly classified as real estate, including money and securities, are recognized as movable property.

That. The main distinguishing feature of real estate is its inseparable connection with the land, which implies its significant value (while the land itself is also considered as real estate). Outside of connection with land plots, real estate objects lose their usual purpose and decrease in price.

Essence of real estate objects is the unity of categories: material (physical), economic, legal and social.

Any real estate object in reality exists in the unity of physical, economic, social and legal properties, each of which can, in appropriate cases, act as the main (defining) one, depending on life situations, goals and stages of analysis.

Main features: Immobility. Real estate objects are firmly connected with the land and their movement is impossible without causing some damage to this object, which makes it unsuitable for further use.

Materiality. Real estate always functions in natural-material and cost forms. The physical characteristics of a property include data on its size and shape, environment, utilities, etc. Real estate is one of the few commodities whose value is almost always stable and tends to increase gradually over time.

Durability. Real estate is the most durable and solid commodity of all existing, except for certain types of precious stones and rare metal products. The earth by its nature is eternal, and buildings and structures have a standard service life of 15 to 150 years. Enterprises, as property complexes, are most often created for an indefinite period.

Classification of real estate objects. Legislative, regulatory, methodological acts and documents classify objects on various grounds: by physical status, purpose, quality, location, size, types of ownership, legal status (accessories on the right to use).

The definition of real estate involves the allocation of two components of physical status in its structure:

1. Natural (natural) objects - a land plot, forest and perennial plantations, isolated water bodies and subsoil plots. These properties are also referred to as “real estate by nature”.

2. Artificial objects (buildings):

a) residential - a low-rise building (up to 3 floors), a multi-storey building. Residential real estate objects can also be a section (entrance), a floor in an entrance, an apartment, a room, a country house;

b) commercial - offices, restaurants, shops, hotels, garages for rent, warehouses, buildings and structures, enterprises as a property complex;

c) public (special) buildings and structures: health-improving (hospitals, clinics, nursing homes and children's homes, sanatoriums, sports complexes, etc.):

Educational (kindergartens and nurseries, schools, colleges, technical schools, institutes, children's art houses, etc.);

Cultural and educational (museums, exhibition complexes, parks of culture and recreation, houses of culture and theaters, circuses, zoos, botanical gardens, etc.);

Special buildings and structures - administrative (police, court, prosecutor's office, authorities), monuments, railway stations, ports, etc.;

d) engineering structures - ameliorative structures and drainage, etc.

Each of these groups can be divided into subgroups.

Man-made objects are called real estate by law, but this category of objects relies on real estate by nature.

By functional purpose, real estate objects are divided into production (directly or indirectly participate in the creation of goods) and non-production (do not participate in the creation of goods, provide conditions for servicing and living of the population).

According to the form of ownership, real estate objects are divided into:

1. Private Foundation:

2. State fund:

3. Municipal fund:

According to the degree of readiness for operation, real estate objects can be: put into operation; Construction in progress.

By industry- industrial, construction, agricultural, housing and communal, cultural and household, etc.

Purchasing conditions:

1) Newly created real estate;

2) Real estate alienated as a result of a sale and purchase agreement;

3) Real estate appropriated by gift or inheritance;

4) Real estate assigned as a pledge;

5) Real estate assigned for rent;

6) Real estate alienated through privatization;

7) Real estate alienated against the payment of rent;

Economically real estate can be viewed as a blessing and as a source of income.

The concept of good in economic theory means any object of consumer choice that can deliver a certain satisfaction to the consumer (increase his level of well-being). Benefits can be both objects and actions.

The parameters that determine the essence of real estate objects are divided into general and related to a particular object. For example, car roads how real estate objects can be perceived as a boon designed to overcome spatial boundaries, and as sources of income. Currently, toll roads are becoming more and more developed, providing commercial services and being a direct source of income for owners. The “benefit” of owning a property and generating income from its use is inseparable from the burden of bearing the associated costs, costs and risks. The owner is obliged to maintain the property, if the law (contract) does not impose this “burden” or part of it on another person.

Real estate as a commodity is an object of transactions (purchase and sale, donation, pledge, etc.) that satisfies various real or potential needs and has certain qualitative and quantitative characteristics. Immovable things as goods include at the same time and bl ago, required by consumers, and costs, or investments, without which the possession and use of them is almost impossible. Like any commodity, real estate has a use and market value. Use value reflects the cost of things for a particular user. Market value is the most likely selling price in an open and competitive market. Land and some other immovable things are included in the economic turnover as resources that do not have alternatives for mutual substitution in many areas of activity.