In today’s real estate investment blog, I will discuss some of the changes that are occurring and stand to have an affect on the real estate market. The real estate investment piece is written for real estate investors and we hope to cover many different issues that you may be concerned about. Today I will be looking at some major banks and how they are approaching the credit crunch. We hope that you find the information that we provide useful for your purposes.

The countries three top banks, Bank of America, JP Morgan Chase and Citigroup have come up with a plan to stave off the effects of the credit crunch. The three banks will raise about 200 billion dollars to make loans available. The money will not come directly from these banks however, and it is hoped that the money will help ease investor’s fears of a credit crunch. Some have their doubts and some key stock market experts have even stated that they feel this move by the banks is nothing more than PR. Whether or not those statements will come true remains to be seen, but hopefully the banks actions will keep investors from a mass sell off.

Despite the fact that the free real estate market in Ukraine is relatively young and immature, the property buying process in Ukraine is quite well documented and a foreign buyer’s rights are protected; having said that, the lack of sophistication in the marketplace means that it is not a place for the risk averse. If a potential property investor follows the general rules and guidelines as laid out in this article, most should avoid the well documented traps and pitfalls associated with buying and owning land and property in the Ukraine. In 2004 Ukraine adopted a new Civil Code, this together with the Constitution, the Law of Ukraine on Property and the Land Code govern the rights of a foreign citizen wishing to own residential or commercial property and land in the Ukraine.

Currently foreigners are not restricted in their purchase, ownership, use and resale of property and certain types of non-agricultural land.  Some foreign buyers prefer to purchase in the Ukraine by means of a local limited company type structure to protect their privacy and assets from unwanted attention.  Whether or not this approach suits the individual investor is something to discuss with a lawyer in the Ukraine.

The services of a decent lawyer should be secured as soon as an investor sets foot in Ukraine and well before any offer to purchase real estate is made.  The next person an investor will need to assist with the property buying process is an estate agent.  Ukraine is a country where there are both incredibly good estate agents and incredibly corrupt agents who attempt to charge both the buyer and vendor and potentially resell the same piece of property repeatedly.

If at all possible a property investor should seek the advice and recommendations of trusted sources over which agents can be trusted.  Decent estate agents in the Ukraine are well worth doing business with as they will know about properties that are for sale before they are ever marketed, but their fees and who actually pays them should be negotiated in advance.

Once a piece of property or land has been identified as meeting an investor’s objectives an offer to purchase it can be made which, if accepted, will result in the buyer and vendor entering into a conditional preliminary sale-purchase agreement.  This contract should be checked by the buyer’s solicitor and then signed in front of a notary and notarized.

At this stage a non-refundable deposit should be paid by the property investor and the investor’s solicitor should begin doing their due diligence on the property, the vendor and the title deeds of the real estate.  There is usually at least a 14 day gap between the preliminary contract being signed and the signing and registration of the final contract to allow searches and surveys to be carried out.

To aid the buyer’s solicitor in his searches the vendor should offer the following documents up for scrutiny: -

1) the certificate of privatization or a previous purchase contract or proof that the vendor owns the property as a result of inheritance

2) a certificate from the Unified Register of Prohibitions on the Disposal of Immovable Property to prove that there are no outstanding debt or legal issues against the property being offered for sale

If all is found to be in order with the investment property in Ukraine the final sale-purchase agreement will be signed and notarized and the notary will register the document with the State Registry.  This process can take a few days and it is at this point that occasionally an unscrupulous agent or vendor will resell the property on to another third party before the registration of the sale appears in the public records.  To get around this issue an investor should insist that a final balance of money is withheld until the registration process is complete.

In terms of the fees, charges and taxes that a property investor in the Ukraine may incur these include the solicitor’s fees, estate agent’s fees, property registration fees, pension fund duty and notary fees.  Those who allow for between 5 and 7% of the purchase price for these extra costs should find themselves well covered.

The two sectors of the commercial property market that offer an investor the best potential for growth and leasing yields are grade A office and retail.

Grade A office space is increasingly in demand and rising in demand in line with the amount of inward investment coming to the Ukraine. This demand is especially intense in central Kiev and is leading to an investor’s potential client base looking outside the city centre limits for alternatives. There are a number of projects in the planning stages and a few have broken ground so an investor can get in early – alternatives include buying up substandard stock and investing in its improvement before leasing it to the awaiting market.

In terms of retail – well, Ukraine has a shortage of retail space per capita when the nation is compared with any other European country and this has drawn strong focus already from many international companies seeking a market with huge room for expansion. The best bet for an investor is getting access to funds targeting this sector to alleviate massive capital outlay or simply buying single units in malls for leasing for example. It’s an expensive sector to get a foothold in but it is one likely to reap an investor substantial reward over the medium to long term.

All in all the best way to describe property investment potential in Ukraine in 2007 is massive opportunity for long term gains in a broad range of property sectors.

Property investors can choose to target the growing travel and tourism market or they can look to local demand for rental and resale real estate if their interest is residential property in Ukraine.

In terms of the travel and tourism market there is established demand from Ukrainian and Russian visitors on the Crimean Peninsula - particularly in locations such as Yalta which has decent infrastructure already and attractive tourism facilities. The rental season is long in these sheltered Crimea resorts with the short term yields achievable very good indeed.

Although recent price increases have driven up the cost of buying investment property in the Crimea and reduced yield accordingly, land and real estate is still largely affordable and can return an investor decent immediate income and consistent long term appreciation.

According to the World Travel and Tourism Council the number of international visitors likely to begin exploring Ukraine will increase between 2007 and 2016 with the Crimean Peninsula a likely location for an increase in tourism traffic – alternative emerging locations for target include Berdyansk and Mariupol which are closer to the Ukraine’s borders with Russia.

In terms of local residential demand then Kiev is certainly the initial location that an investor will consider. Demand is surging ahead of supply and affordability is increasing but the rate at which property prices and rental rates chargeable have been increasing has led to suggestions that the market has already overshot realistic gains…there is certainly still money to be made in Kiev but a short term focus is not wise. The best alternative at the moment is Odessa which is an attractive city, it is also growing as a tourism centre, it has an established free trade zone attracting strong inward investment and as a result its population is being boosted by migration of locals from outer lying areas who seek jobs and accommodation.

Investors can buy to let or purchase run down stock for renovation and resale.

Land and real estate prices in the Ukraine have been creeping up consistently in recent years with record growth recorded in the capital Kiev in the last two years alone. Basically the government are doing all they can to act as a bridge between Western and Eastern Europe and the Commonwealth of Independent States and they are also making it incredibly attractive for foreign investment to enter the Ukraine.

There are free trade zones in place, taxation incentives and decent legal protection for businesses and individuals who bring investment and jobs to the Ukraine and so the economy is doing especially well, GDP is creeping up and there is a new breed of middle class, middle income local citizens fuelling a period of property market expansion and for international property investors there are opportunities in both the residential and commercial real estate market sectors.

Politics say, “We climb to Europe”. In what way, I would ask. The fact that we have European prices is well known all over the world, but what is the most exciting are the prices of flats in Kiev and Kharkov, as it is said “Prices are reasonable for everyone, except customers” . As a Kharkov citizen, I will speak about my city.

I live in Kharkov, I work here and I rent a flat here. Like all people, I need a place to live in. I am an average person and get an average salary of $200-$300, so, if I save half of my money, it will take me for about 30 years to buy a one-room flat in the uptown, the price of which is about 35-40 thousand dollars.

But there is a better variant - to save all your months salary and get an apartment in 15 years, if you don’t die from starvation. Probably, I will be fortunate to get it in 30 years, and will have a good chance to live my last happy days in it

If you come to Kharkov for example, you’ll see yourself that a lot of new and modern flat blocks are build all over the city. Who knows maybe if they build new houses it means that somebody buys them, or vice versa they hope that if there will be what to buy, someone will buy it.

According to the laws of economics if supply grows the price goes down, but as you know Ukraine is a country of paradoxes – so here even economic laws don’t work. Supply of flats grows and the price as well!

Many of western developed countries don’t need a visa, it is easier for them, but if you need it, it is not a big problem. But if you need it, you can do this with the help of an invitation letter only, that you may order in Hotel Mir, Kharkov, just book a room there and the letter will be sent to your fax and the half of the work with Ukrainian visa will be done. Then you need an accommodation in Ukraine, you would book a room in a hotel, but for some reasons Kharkov hotels are not attractive for you. There are many services, which may help you with accommodation in Ukraine.

There are a lot of apartments for rent in Kiev, Kharkov and many other Ukrainian cities. You just go to google, enter any of keyword – Ukraine apartments for rent, Ukraine apartments rental, Kharkov apartments, Kharkov accommodation, etc, and you will see hundreds of sites. Now you have to choose the one which is good for you, that is reliable and reasonable. I would advise you to choose those who have reference on how you may find them. The most reliable Ukraine rental sites are the ones who have their office, telephone, mobile phone, etc. you may call them or come to their office and book and apartment, you may also contact them online, if it is more convenient for you. Better do not use the services of that sites that have the only way of booking – email or messenger. It can be a scammer who will ask you for prepayment and you will never find them after you don’t get a flat.

Usually all Ukraine apartments have whatever you need – equipped kitchen with plates and dishes, microwave oven, fridge, etc; you will have washing machine there, cable or satellite TV, clean towels and sheets will be also provided for you, besides this yo

Many of western developed countries don’t need a visa, it is easier for them, but if you need it, it is not a big problem. But if you need it, you can do this with the help of an invitation letter only, that you may order in Hotel Mir, Kharkov, just book a room there and the letter will be sent to your fax and the half of the work with Ukrainian visa will be done. Then you need an accommodation in Ukraine, you would book a room in a hotel, but for some reasons Kharkov hotels are not attractive for you. There are many services, which may help you with accommodation in Ukraine.

There are a lot of apartments for rent in Kiev, Kharkov and many other Ukrainian cities. You just go to google, enter any of keyword – Ukraine apartments for rent, Ukraine apartments rental, Kharkov apartments, Kharkov accommodation, etc, and you will see hundreds of sites. Now you have to choose the one which is good for you, that is reliable and reasonable. I would advise you to choose those who have reference on how you may find them. The most reliable Ukraine rental sites are the ones who have their office, telephone, mobile phone, etc. you may call them or come to their office and book and apartment, you may also contact them online, if it is more convenient for you. Better do not use the services of that sites that have the only way of booking – email or messenger. It can be a scammer who will ask you for prepayment and you will never find them after you don’t get a flat.

Usually all Ukraine apartments have whatever you need – equipped kitchen with plates and dishes, microwave oven, fridge, etc; you will have washing machine there, cable or satellite TV, clean towels and sheets will be also provided for you, besides this you may also order apartments with air-conditioning, Jacuzzi, sauna, and many other that may satisfy every taste. The prices vary from $35 to $150 per day, depending on room number and conveniences. The prepayment’s size is usually the cost of one day, you will be asked to make it beforehand and then, on arrival, you pay the rest.

One more advice – better to choose those Ukraine rental services, that are also provided for you in English, so that you could always call them if you need something or if something goes wrong. So, rent Ukraine apartments and enjoy your visit.

u may also order apartments with air-conditioning, Jacuzzi, sauna, and many other that may satisfy every taste. The prices vary from $35 to $150 per day, depending on room number and conveniences. The prepayment’s size is usually the cost of one day, you will be asked to make it beforehand and then, on arrival, you pay the rest.

One more advice – better to choose those Ukraine rental services, that are also provided for you in English, so that you could always call them if you need something or if something goes wrong. So, rent Ukraine apartments and enjoy your visit.

It’s a well known fact that real estate property assets held for the medium to long term make solid additions to an overall investment portfolio and that our home is often our number one asset in terms of its value…which is why there has been a steady increase in the number of people around the world considering investing in property.

General media reports relating to investing in property tend to focus on how to afford a given property, which countries have developing real estate economies and where most buyers are headed this year in search of the lowest cost, highest appreciating property assets. But few if any focus on how an investor can actually make money from a given property market.

Questions such as ‘can you make money from tourism if you buy in the Czech Republic’, ‘what about local demand for housing in The Ukraine’, ‘is the government going to make buying easier now Romania and Bulgaria are in the EU’ and ‘will this mean more local buyers want resale property stock’ are never raised when really, these are the first and most important questions an investor should be asking!

After all, it’s all very well reading online that prices for properties for sale in Dubai have risen dramatically year on year since an announcement was made that foreigners can own freehold property assets in the emirate and then quickly hunting out some real estate that you can afford to buy and hoping to reap dividends - but did you know that there are infrastructure problems now affecting Dubai and lowering the appeal of property in the emirate and that questions about affordability are starting to be asked, suggesting properties in some areas are over priced?

You see, it’s all very well us wanting to invest in property and the media writing in general terms about all these random nations around the world where there is supposedly the potential to make a fortune from real estate - but how do we actually go about deciding whether there is a target client base likely to demand our property after we have invested in it?

Potential property investors not only have to do their due diligence on which countries have an active real estate marketplace but they need to determine if these countries offer them political and economic stability, the right to own freehold real estate and the right to take profits derived from property out of the country. Research has to be done relating to real estate taxation, tax on rental income and tax on capital gains, and even more importantly than this, a potential investor has to look at a country’s property market and determine how they can profit from it.

Is it right to buy to let, is it wise to buy to rent to tourists, should one be buying up rundown stock and renovating for resale or buying off plan assets and flipping them upon completion? These are the questions an investor needs to ask if they are to find the best real estate property investment potential around the world.

Ukraine has one of the fastest growing economies in the world; to generate this growth companies need to finance capacity expansion. Ukraine is currently experiencing one of the fastest stock market growth rates in the world over 50 % in the first quarter of 2007.

In 2006 Ukrainian companies issued 16 IPOs and that number is expected to double in 2007, including financial services, banking, food production, retail trade and real estate development. Companies are willing to raise new investment capital by offering shares both to local and Western portfolios and private equity investors or by offering debt obligations in the form of corporate bonds.

Investors look for large, underdeveloped economies where there is a relative amount of political stability and predictability and where there is a general tendency toward good corporate governance standards. Ukraine meets these criteria with the exception of the most recent political events.

Today on the Ukrainian market most in demand are capital-raising services through IPO. The issuance of new share capital is one of the cheapest sources of long-term investment capital for Ukrainian companies.

Raising 20 million dollars to 70 million dollars through a local listing on PFTS is relatively easy, because the local market is becoming more and more liquid in secondary trading. Today’s PFTS average daily trading volume for shares is 14 million dollars.

Ukrainian companies do their IPOs both on the Ukrainian stock market PFTS and on the international capital markets, like the LSE or WSE. 2006 was a successful year for 12 companies which did an IPO on the PFTS, for three companies on the LSE and one on the WSE.

August 2006 became a successful month for Astarta Holding which was the first Ukrainian company on the WSE. It gained 31.5 million dollars for a 20% share holding. Until the end of 2008 Ukrainian companies plan to make an IPO for 3,1 billion dollars. 23 Ukrainian companies announced their future IPO plans connected with the LSE, and an other 12 choosing other international stock markets. In 2007 the government plans to list 38% of Ukrtelecom in London and its value should be closer to 3 billion dollars.

The main problem for Ukrainian companies is the absence of the information about their activities. As a result, they have little or no trading volume or even decreasing in prices. Companies listed in the LSE had such an experience.

Undoubtedly it’s better for Ukrainian companies to raise their capital on the Ukrainian Stock Market, where local traders and brokers know who they are and have the ability to trade their shares.