Average annual return from rental real estate premium in Moscow and in London about the same: 5.4% and 4.3% respectively. Presenting expert advice to those who decided to purchase housing for subsequent lease in Moscow or in London.
Related article: Paris - a paradise for investment property1. Select your client. The first and most important step - make a portrait of a potential tenant. Actually, you need to answer a simple question: Who will rent you home? For example, in London, Americans tend to choose the old house, and came from the eastern countries are almost always prefer new buildings. In Moscow, the tenants of the U.S. and UK are popular areas are in close proximity to international schools
In general, young families, foreign tenants (without reference to nationality) prefer to settle in the historic center. A respectable Russians prefer home on Rublevsky highway, as well as new monolithic building in the Central okruge, and in areas of Lenin and Kutuzov Avenue. Furthermore, Russians are more inclined to rent vacation homes (Rublevskoe, Kiev, Novorizhskoe highway) as a second residence, despite having our own apartment in the city.
2. Avoid uncharted territory. People who do not know London is unlikely to be interested in living in new areas. Stay closer to the world-famous areas - Knightsbridge, Hampstead, Wimbledon and Chelsea. In the Russian capital popular with tenants premium did not enjoy the east and south-east of the city, Mira, areas Sokolniki and Izmailovo.
3. Provide vehicle access. In London, the majority of rental apartments and houses located in close proximity to subway stations, connecting financial and shopping districts. Railway stations and bus stations are far less than attractive.
Moscow is clearly trying to avoid tenants stations. For example, the Kursk train station is part of the Clean Ponds area, but apartments are in close proximity to the Kursk station outside the zone of interests of tenants. It is also not popular area near the area, "the three stations. But there is no rule without exceptions: areas of Belarus and Paveletsky station, not only embarrass tenants, but also very much in demand because of the large amount of built there business centers. By the way it is important to remember that apartments are located near the business center is always in high demand from tenants and the neighborhood certainly like to help pass the real estate is much faster. In addition, the expert's opinion, the proximity of the metro is a plus, but not so important, because high budgets are much more important are the roundabouts and parking areas.
4. Choose a nice area with good infrastructure. London consists of "villages" (districts) with a local flavor, and infrastructure, including bars, restaurants and shops. Investing in one of these "villages", not a faceless area yield good dividends, says Jennifer Furth. This is particularly true, of course, world-famous areas (sm.p.2) in Moscow, the most popular from this point of view is the area of the Patriarch's Ponds, and Tverskaya Street.
5. Choose the "right" property. Make sure that you get the right kind of property for the area. Some areas offer homes that attract couples, while others - mostly in central London - apartments that are ideal for working professionals. In Moscow, Arbat-Smolenskaya area in sentence structure is mainly dominated by apartments with one or two bedrooms, which are not in demand. But the popular multi-room apartments for families - always in short supply. To pass a small apartment near the Arbat-Smolenskaya take six months, while a similar object on Tverskaya leave the market for a month.
6. Try to look beautiful. When buying an apartment, inspect the staircase, corridors and garden. Well if they are able? Make sure that running the house allocated the necessary funds - this will help avoid unexpected repair costs - these are the recommendations in London. But no less important, the council in Moscow.
7. Engage in arithmetic. Investors often miscalculate and underestimate the costs incurred during the downtime and the cost of paying utility bills. Try to avoid such mistakes in the beginning, and you can reduce costs and increase revenues. If we compare, for example, two similar two-bedroom apartments in the area of Kropotkin in the house with HOA and the home, located in municipal management, in the first case, utility payments amount to 15 thousand rubles. per month, while the second - 3,5 thousand rubles.
8. Secure. Before you buy property, engage in the study area. It is worth paying attention to safety - in fact this aspect is one of the important components of the decision to rent an apartment. A sure sign of a safe and prestigious area - the presence on its territory of foreign embassies. Typically, these places are well protected and in demand by tenants. It should also pay attention to lighting, entrance and courtyard. By the way, plays an important role and a floor on which the facility is located. In Moscow, just above the second floor apartments are in high demand, so as to have better safety features. Flats for low floors definitely not be popular with tenants. First-second floors - not an option for the investor. In addition, tenants prefer housing with protection or concierge, rather than simply with an intercom.
9. Do not engage in property management themselves. It is very difficult to repair leaking valve at the request of the tenant, if you are at this moment are on a business trip abroad. Managing agent to solve the problem, as well as settle any other issues. In London, the service is extremely popular. The Moscow market is also actively adopts international practice. Today, all major real estate agency has a team of technical support that at any moment ready to resolve technical problems in the apartment.
10. Use the services of professionals. Detailed information about the local market is extremely important - enjoy a thorough market research. Hire a specialist who can find a profitable facility. In addition, when investing is necessary to focus not only on the earnings performance, but also for a period of exposure.
According to IntermarkSavills