Stock + Real Estate Investments

You might see many articles on the web comparing different types of investments, with two types usually considered the most popular. Today, I will cover them individually and share some thoughts on connecting Stock Investments and Real Estate Investments as one effective strategy to grow your money. 

My name is Alexander Bezrodnii, and I’m Head of Brand & Marketing here at Vestor.Estate. Merging our eight years of experience in Kyiv Real Estate and my personal experience with the stock market, I сame up with an exciting strategy to combine these two ways of investments.

Let’s start with investments in secondary real estate here in Kyiv, about its features and main differences, and most importantly – YIELDS.

Why are we doing business mainly with secondary real estate in Kyiv?

The answer is pretty simple – because it is exceptionally profitable compared with real estate investments in the USA or Europe. We are searching for undervalued residential property in the very heart of historical Kyiv. The buildings here are very high quality with thick brick walls and about 3-4 meter high ceilings. We will not dwell too much on the types of houses in this article, but you can find this information in our other article.

Europe’s experience shows us that the price of these properties should only grow with time, as happened with similar structures in Paris, Rome, and other beautiful cities around Europe. Now, a square meter in the historic center of these capitals can easily be 10,000 EUR or even more.

Kyiv has significant cultural and business potential, and here we are seeing a dramatic increase in the number of foreigners coming for the new business possibilities. Since 2015, according to the Ukrainian employment service, the number of foreigners working in Ukraine has increased almost two times by 2018; this indicates a clear tendency for newcomers participating in the local economy to grow, and our goal is to provide them with suitable housing in Kyiv.

Vestor.Estate – a full-cycle real estate company.

What does it mean? It means that we are managing all stages, from buying property to letting. Then, we will take care of everything related to the occupied property, such as paying bills, minor repairs, settling possible conflicts with neighbors, etc. 

  • Buy 
  • Renovate
  • Rent out
  • Manage

At the moment we have 30+ successful projects and eight ongoing at different stages. Our clients are successful entrepreneurs and business people from around the world who believe in the Ukrainian story, and already have income from their investments.

We will do everything necessary to ensure that you receive an excellent annual income. You do not need experience in architecture and design, and you do not need to delve into the local specifics of management; we will do everything for you. We can complete transactions remotely using ESCROW, and you do not need to fly to Ukraine for this. But we are always happy to welcome guests in our office in the very heart of Kyiv, at Reitarska 9

We can go deep into the specifics of the secondary real estate market in Kyiv and endlessly talk about our company, but the of this article is to combine the two most profitable investment strategies.

So let’s move on to investing in securities and stocks.

Stocks, securities, and even cryptocurrencies are very profitable and popular methods to increase your capital, but at the same time, all these methods can be called quite risky. You can multiply your wealth several times, but you can lose everything, especially if talking about cryptocurrency and stocks. But if it so happened that you were lucky and you multiplied your capital, wouldn’t it be reasonable to fix a part of this capital in a more reliable form – real estate?

The favorite strategy of the most successful investor of all times, Warren Buffet, that he learned from his financial teacher Benjamin Gramm was to secure at least 50% of investments portfolio in bonds, and this means that at least 50% of your capital will survive in the event of a market fall.

But how safe are bonds now that America’s inflation rate has skyrocketed to 6 percent in 2021? And the latest statements by Jerome Paul hint that the Fed will continue to stimulate the economy by printing more dollars, which will push inflation even further.

If we dig deeper, we will find out data on where young Americans investing their money, including the money they received as compensation in connection with covid-19.

As we see, newcomers are likely investing their money in individual stocks and cryptocurrency. Very volatile and extremely profitable in the short term, but potentially very dangerous in the long-term perspective.

These young people have little or no knowledge of how the economy works. The main triggers for buying or selling are social media, and the main tools are the mobile app. Ideal conditions for inflating a huge bubble, which is also evidenced by the Buffett indicator, which is calculated based on the Market capitalization of all US stocks / GDP x 100%.

Historically, Buffett’s indicator has usually hovered around 100%. The value dropped below 30% during the Great Depression and briefly in 1982. The peaks were before the market crash (and the start of the Great Depression) in 1929 and during the dot-com boom in 2000. The value of the Buffett indicator for today exceeds all of its previous peaks – 226%.

I think you have already guessed what I am getting at. Based on the above, we can assume that inflation will rise and the bubble is likely to burst. Investing in real estate now is a great way to capitalize on a situation in which the price of real estate will only continue to rise and faster than inflation. Nasim Taleb’s famous book “Antifragile”, explains how you can benefit from difficult situations. Guided by reason and information that is freely available, I came to the above assumptions that the situation nowadays might be difficult for people who have some savings. Now it’s your turn to think about this, and if you want to invest in real estate, as a result, know that you can count on us.

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