Moscow - city of the poor investor

In Moscow, the rental market is comparable to the volumes and prices with similar markets the world's leading capitals. But a collective portrait of the typical investor in Moscow insanely far from the Western model. Especially if we talk about the owners of the most popular and sought after residential economy class. Western investor (if you do not talk about the companies and on individuals) - provided people with a diverse portfolio of investments, including residential real estate - only one direction. Typically, they buy an apartment in which tenants are already living, and control is immediately passed into the hands of specialized companies. That is, do anything without worrying about receiving rent. In Moscow, these investors, according to realtors, from 0.5 to 1%. But they are invested mainly in the segment of real estate. Garden "emigration" as a means of survival. The bulk of the army donate an apartment in Moscow - Muscovites. At their disposal is one, maximum two free apartments. As a rule, they went by inheritance from grandparents, and even got free in the Soviet era. There are other options: apartments, obtained by dividing the property during a divorce, bought for the future for their children and grandchildren, etc. There, according to IntermarkSavills, 75% of the total number of landlords. About 10% of Moscow rentier circumstances compel surrender his one apartment and move to the country. As a rule, are unemployed or retired people who are 25-40 thousand monthly income to help make ends meet. Equity capital invested in real estate only 5% of the market participants. Although the figures are at variance, some Realtors believe that such people even less. "The volume of transactions in residential real estate, focused on recovery of rental income, I would rate within 0.5% of the market. With respect to such purchases made by individuals, it is generally insignificant numbers ", - says CEO of Penny Lane Realty George Dzagurov. Passive income groups in the first three years range from 3.5 to 5% of the market value of the trade-housing. If you add that many owners of "reserve" property does not work (they live in rent), then assign them only to low-income citizens. Imagine an ordinary Moscow pseudo-investor who submits an apartment. At the end of the month he also frantically, as though living from paycheck to paycheck, counting the days until the rent money. Peculiarities of the National rent. That is why the Moscow market offers a lot of "dead" apartments. Economy-class homeowners are trying not particularly invested in the renovation and construction of trade-housing. This is disadvantageous, and, more often, simply could not afford. The calculation is very simple. Even if the "odnushke" leave "grandmother" furniture, making cosmetic repairs (its in an accommodation stubbornly like to call "Euro"), and to procure the necessary equipment, then it will cost from 300 thousand to 600 thousand rubles, depending on the quality of of materials. The entire first and sometimes second year of money the tenant will go out to compensate for these "investments" (economy class-room apartment varies depending on the distance from the center of the metro station and from 300 to 540 thousand rubles a year) . But sometimes it happens and so that the tenant, I will go, leaving an apartment in a poor state. Then again have to shell out (the cost of repairs at this time, of course, will be smaller). So, given the costs and headaches associated with the periodic repair of household appliances, wiring, valves and other plumbing as well as charges for public utility services, renting an apartment for rent is just a tool to support the family budget. Call the business that's funny, because any activity of this kind suggests that part of the income necessarily invested in the further development of the securities. Moreover, there are costs, which many landlords try to avoid. The first - a tax of 13% of the rent (if the property owner will issue the status of FE, the fiscal burden will fall to 6%). Second - insurance apartment, furniture and equipment (approximately 3% of annual income). As in recent years, widespread fraud in rented apartments, when speculators sell the flat with forged documents or expired power of attorney, some of the insured and the loss of the owner's title. I should add that the "poor" investor control over their own property. Tenants are usually through an agency, but that contact with realtors and ends. It's not even that, in Moscow, few firms that control the leased real estate, and that their services are also to be paid. Real estate company can offer to the owner of residential property manager, but his services will cost about 15% of the monthly rental rate. And the extra cost hurts to hit a lean pocket the owner's property. If you pay all the taxes, but still rely to take control, the yield for rent flat economy-hardly make it to the 3-3.6% (depending on location and quality of housing). Comparable to London (3,5-3,75%) but significantly lower than in Berlin (5-5.5%). Elite segment of the real and rentiers. Elite rental market in Moscow is developing actively, but the numbers that give realtors, far apart. "Today about 10% of apartments are owned, for which rent has businesses", - says Galina Tkach, director of leasing IntermarkSavills. According to her, an average of one such person has 3.4 flat, in this case, if we consider the special cases in which an owner (or one family) has from 2 to 16 objects. Natalia Kats, managing director of the agency's exclusive real estate "Manor", claims that no more than 5% of the capital market can be called a rentier landlords. Similar figures leads and George Dzagurov. Investors are a bit because of low profitability and long payback periods (more than 15 years). In Russia, prefer to invest in commercial, office or commercial property - a cost-effective than housing. Yield of 10-12% in Moscow - a significant difference compared with 5-8% of residential, even luxury real estate. "If comparable rental rates per square meter of housing is more expensive at times," - explains George Dzagurov. Thus, according to Penny Lane Realty, in the Central Administrative District of Moscow, one square meter shopping center worth $ 5-7 thousand, street retail - $ 15-23 thousand in the commercial real estate - $ 2,5-8 thousand Rent a commercial real estate at the rate of 1 sq. km. meter per year will be, respectively, $ 1,2-5 thousand, $ 7.3 thousand, $ 0,6-1,1 thousand Living Luxury property priced at $ 25 thousand per square meter, and the lease will generate $ 36-84 thousand per year, but not at a meter, but for the whole apartment. The crisis, according to George Dzagurova, forced many owners and developers of office buildings to be closer to the small investors who split their business centers in small blocks that can be bought for money, comparable to the price of apartments in Moscow. "A number of such objects are sold leased, that is, with a clear income. In this case the landlord is always dealing with a firm that is clearer and more reliable than the individual citizen - tenant apartment, "- said Giorgi Dzagurov. Pass and run. In Moscow there is a professional company, investor, working within the luxury real estate. "Projects" Dewdrop "," Pokrovsky Hills, "" Setun "fresh -" Rublevo Myakinino "- initially focused on the rent, - says Natalia Kats. - Also for rent apartment shall be in the hotel "Ararat Park Hyatt" and "Ukraine". Owners of the business may be called the modern investor. " These suburban facilities - luxury real estate settlements, where families can rent a house for $ 7-10 thousand per month. True, there are sub-letting, when the owner of an object simply leases it to a company, and she has to retake mainly in short-term lease (short term). The average yield in the elite segment ranges from 5 to 8%, and with a thoughtful approach and competent management may even go up to 10%. But this does not happen often. Thus, if the object is worth about $ 1.2 million for rent for $ 7 thousand per month, then we can talk about the return of 7% per annum, which is comparable to bank deposit. In addition, exchange rates fluctuate more than prices. As an example, town house in the village of Barvikha Club. The cost of housing in the region of 40 million rubles, for rent for 230 rubles. Yield is 6.9%, and net operating costs - 6%. The worldwide pattern - the more expensive the property, the lower the yield. Russia does not like: midrange on this indicator lags behind, not least because of high housing prices. And wait for changes in the situation to occur.