Profitable house is Profitable houses in Moscow

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Numerous adjustments that the global crisis has made to the economy of many countries do not change the relevance of investing in real estate. A simple man in the street, investing his savings in the construction of residential facilities, skillfully saves his savings. Due to the change in trends, the resale of real estate has ceased to generate tangible income, which has led to the emergence of completely new sources of profit for large investors. An apartment building is a sought-after alternative to buying real estate. The construction of these residential facilities was carried out earlier and was officially curtailed in 1917.

Let's look into the past

A profitable house is an object from a separate real estate segment, which is used by its owner as a long-term investment project. The first buildings of this type were erected in Europe at the beginning of the 17th century. It was in England, Germany and France that they first began to promote the idea of providing their own housing for temporary use to third parties. In the past, there was no way to quickly sell a home, which is why there was a tendency to build luxurious mansions. In the process of constructionthe most famous architects were involved, and the structures were located in the most picturesque places. Finished buildings were separated into a separate type of real estate, which was considered an adornment of the world's largest cities.

What did tenement houses look like in the past?

The first apartment building was an apartment building, on one of the floors of which the owner of the property lived with his family. The floor could house the homeowner's office, shop, or warehouse. A characteristic feature of the structures was the presence of stucco decoration on the facade, beautiful statues, bas-reliefs and columns. The exterior could be gilded. Decoration was present only on the part of the building that faced the streets. The facades directed to the inner part of the courtyard were designed very simply and did not have any frills. The apartments that were part of tenement houses in Moscow and in other cities had an identical layout. They almost always clustered around galleries, corridors and stairwells. The building occupied almost the entire territory of the site, which was allocated for it. The only free space is the patio, which was used for short walks for tenants with children and for drying clothes.

How was the history of houses in the Russian Empire formed?

The first apartment building is a construction that is absolutely not typical for the architecture of the past. Such a structure appeared on the territory of the largest cities of the empire only in the 17th century. It took only 50 years for the buildings to become very popular andin demand. In the past, there was a tradition: every merchant, businessman or any other we althy person who respects himself must have erected at least one such structure, on the sign of which the name of its owner will be indicated. By the beginning of the revolution, there were at least 600 buildings of this type in Russia. They decorated the streets of Moscow and Odessa, Kyiv and Gomel.

Development of tenement houses based on changes in legislation

In the 19th century, as a result of significant changes in the legislation of the Russian Empire, the first floors of structures could be rented out as a studio, a photo studio, shops and confectioneries. The second floor was intended for office space. On the third floor of the structure there were apartments rented by nobles, industrialists and merchants. Actresses and artists, retired military men and students lived on the attic floors. A small room cost the tenant 15-30 rubles a month, and multi-room apartments cost from 500 to 1000 rubles. Access to the rental of this category of housing was open to absolutely everyone.

The emergence of an idea

Apartment building is a topic that has been discussed quite often lately, which is directly related to the active development of the domestic real estate market. The structures are, in fact, multi-unit buildings in which all apartments are rental-oriented. For the first time, the idea of erecting structures of this category appeared among the statesmen of St. Petersburg, who in this way strive foreversolve the housing problem. According to them, low-income residents of the country, who are unable to purchase their own house, will not only be able to rent apartments offered by tenement houses in the Nevsky district. They will be able to live happily and comfortably there. This idea does not fall into the category of innovation, which is quite obvious from the story presented above.

Relevance of projects in 2015

The relevance and profitability of the projects is justified by the fact that Russia's housing stock of the 20th century has significant differences from the stock of today. In the past, large cities were formed from large households and noble mansions, which were focused on just one family. Ordinary employees who actively migrated to large cities could neither buy nor rent housing for themselves, since the proposals were largely limited to palaces of one and a half thousand squares. An apartment building is not just a solution to urgent problems with housing, it is also a response to the demand on the market and simply a highly profitable business.

Is there a demand for rental housing in Russia?

Demand for rental housing in Russia has grown significantly over the past few years. A huge number of people are looking for affordable housing. Many, in an effort to profit by meeting demand, rent out rooms in their apartments or entire apartments they inherited. There is also a more serious group of investors who specifically renovate apartments in order to provide them for rent. Suchapproach and stable income provides, and funds helps to save in times of instability in the economy. Analysts note that people are much more interested in tenement houses in St. Petersburg than offers from private traders. This is ensured by the stability of the partnership. The situation when the owner can ask to vacate housing due to his life circumstances is completely excluded. We can talk about a simple and transparent partnership scheme and confidence in the future. An apartment building (there is a photo of such buildings in the review) benefits not only its owners, but also the state, which gets the opportunity to legalize the real estate market.

Viewing construction as a business

Today apartment houses in Moscow cost their owners the same amount as ordinary houses, apartments in which it is planned to simply sell. In the construction of a typical house, its owner recovers the funds invested in construction within only 5 years. Similarly, profit is obtained within an identical period. At the same time, the loan for the construction of the structure is repaid as quickly as possible by investing in the process of building the buildings of future residents. As for apartment buildings, their payback is 13 years or more, which automatically leads to an increase in interest on the loan during the implementation of the interest. Ultimately, the project will provide a stable passive income of a large size, but few modern entrepreneurs are ready to work for such a distant future.

What can helpgovernment?

Due to the fact that the segment of apartment buildings in Russia is not very developed, it is considered unattractive for businessmen and investors. The government, for its part, cannot take any effective measures, since the provision of incentives or subsidies for construction, tax easing or preferential prices for land, in the end, does not solve the state problem. The rental rate, even with lower costs for the construction of housing, remains the same. Despite the active discussion at the government level on this topic, practically no active actions are being taken. An alternative for business with a parallel solution of the housing issue at the state level will become available only when the market for this real estate segment grows and, due to the abundance of supply, becomes more accessible to low-income citizens. As an option, an apartment building, reviews of the level of living in which only please, can be fully funded from the budget, but funds have not yet been provided for these projects.

When will the tenement houses turn?

The structure of market relations says that supply will be formed until demand is completely exhausted. Let's start with the fact that the active development of the Russian real estate market can only be observed over the past ten years. At a time when rental housing occupies a worthy segment in the markets of developed countries, in Russia it is just beginning to appear in the form of organized buildings. Today, developers are leaning towards the construction of ordinary housing, which pays off faster and incomebrings in the coming years. As long as there is demand, this trend will not change. The tenement house, whose employee reviews draw attention to the positive aspects of the project, will be in demand when property buyers exhaust themselves, and the market will be dominated by demand from the low-income population for affordable housing in terms of rental. At the same time, interest in buying apartments will fall, which will create fierce competition among developers in this segment and increase risks. This will be a turning point when developers will begin to give preference to such projects as, say, tenement houses in the Nevsky district.

2015 Building Guidelines

The basic principles for the construction and development of housing for rent in Moscow were to appear in the Master Plan of the city, the approval of which was scheduled for 2015. An apartment building, which always receives positive feedback from employees, can become a highly profitable project in the future. In the future, it is planned to change the specifics of construction. The following issues were considered and rejected during the discussion of the problem: reduction of lighting standards, changes in sanitary and epidemiological standards, safety standards. In accordance with preliminary plans, it is on the reorganized industrial zones that the first apartment building will appear. Pushkino will not become its location, but the territory of New Moscow, Zelenograd and the Northern Administrative District is quite possible. As for the developers themselves, they are not very happythe government's desire to develop the rental housing market. In their opinion, the apartment house (Pushkino) at the moment does not seem promising in terms of profit. This is due not only to high interest rates on loans, but is also related to the long payback period of the project. The presence of more profitable segments in the Russian real estate market plays a big role.