Videos · Investing in Kyiv real estate
Pitfalls: Rentals In The New Buildings [Kyiv, Ukraine]
3:20 · 2020 · Sean Almeida
![Pitfalls: Rentals In The New Buildings [Kyiv, Ukraine]](https://i.ytimg.com/vi/Hj6Y9wGYmL8/maxresdefault.jpg)
Before you buy a new-build apartment to rent out, Sean Almeida's checklist. Know your tenant first and pick the location for them: an IT business centre nearby suits a young Ukrainian professional. Check parking, because some central new buildings have about ten spaces for 120 apartments. Expect neighbours still renovating, since most flats are sold as a bare concrete shell. And look at what the developer plans next door: more towers mean your rental competes with the next building. A 10 percent yield in year one can fall to 5 percent or lower.
Questions this video answers
What should I check before buying a new-build apartment to rent out?
Sean's list: know the tenant first and choose the location for them (an IT business centre nearby suits a young Ukrainian professional), check parking, expect neighbours who are still renovating, and look at what the developer plans to build next to you.
Sean Almeida, as said in 2020 · watch at 0:22
Why does parking matter?
Tenants who pay good rent usually have a car. Some new buildings in central Kyiv were built without underground parking, with about ten spaces for 120 apartments, so the rest park on the street. Sean says you should make sure a secure spot is available.
Sean Almeida, as said in 2020 · watch at 0:59
What is the problem with neighbours renovating?
Most new-build apartments are sold as a bare concrete shell. You may finish first while neighbours have not started, so tenants live next to constant construction, with dust and workers in a shared lift that may also be damaged.
Sean Almeida, as said in 2020 · watch at 1:29
How can the developer affect my rental income?
Developments are often built in phases, so the developer is building your competition next door. More supply makes it harder for your apartment to gain value, and Sean says a 10 percent first-year yield could drop to 5 percent or lower.
Sean Almeida, as said in 2020 · watch at 2:31
Laws, prices and rules change. These answers describe what was said in 2020; check current conditions before you act.
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