Real Estate and Property in Ukraine
Ukraine's real estate market has seen extensive development in recent years and many investors, both local and foreign, have benefited greatly by recent soaring property prices. Real estate in Ukraine is a great investment whether you are planning on reselling or renting. Several real estate agencies in Ukraine can be contacted online, which is a great way for people from around the world to invest in property in Ukraine.
Property prices hit a low in the early 1990s, but since then property appreciation has just grown. This is seen particularly in the larger cities such as Kiev, Lviv and Odesa. Real estate prices in smaller towns and villages have however remained quite low. Why has real estate in Ukraine had such a boost? There are several reasons. When the Soviet regime ended many people moved to the cities. Capital and opportunities are concentrated in Ukraine’s cities. Income levels have increased in the resorts and cities. It is easier to obtain bank loans and mortgages. Although interest rates are high, demand is still great for real estate in Ukraine.
People from any country may purchase Ukrainian real estate excepting agricultural land and property that has not been privatized. If you are interested in purchasing residential real estate in Ukraine you will require the following documentation: A valid passport; Ukraine taxpayer ID code certificate; marriage certificate; spouse’s passport and letter of spouses consent (last three apply only if married and attending Ukraine without your spouse). It is possible to purchase property through an Ukrainian real estate agency without being physically present. Common practice amongst foreign real estate buyers is to open a bank account in Ukraine and then transfer money for the purchase into this account.
When purchasing real estate in Ukraine certain costs need to be paid. A 1% of the sales amount goes to tax whilst another 1% has to be paid in to the Ukraine Pension fund. Real estate agencies in Ukraine charge between 3 and 5% commission. The option is available to pay 1% to the agency for property insurance.
If you are planning to build on your newly acquired Ukrainian property you will need to get a building permit. Many building firms will take care of all the necessary paperwork for you. Utilities in Ukraine are quite low in cost and maintenance will not take up too much of your budget. If you are planning on renting you can consider charging 5 to 10% of the property’s value annually, which amounts to around 0.8% a month. Real estate agencies in Ukraine offer a rental service where they will take care of everything. Tax must be paid for rental earned in Ukraine.
So why not look around for a great piece of real estate in Ukraine. Whether you rent it out or keep it as a holiday home, it is a great investment, one that you are unlikely to regret.