Why to invest
Have you ever wondered how the rich got their wealth and then kept it growing? Do you dream of retiring early (or of being able to retire at all)? Do you know that you should invest, but don’t know where to start?
If you answered “yes” to any of the above questions, you’ve come to the right place.
We should emphasize, however, that investing isn’t a get-rich-quick scheme. Taking control of your personal finances will take work, and, yes, there will be a learning curve. But the rewards will far outweigh the required effort.
Why to invest into Real Estate
Real estate is a distinct asset class that is simple to understand and can enhance the risk and return profile of an investor’s portfolio. On its own, real estate offers competitive risk-adjusted returns and attractive income streams. It can also enhance a portfolio, by lowering volatility through diversification. Though illiquidity can be a concern for some investors, there are ways to gain exposure to real estate, such that illiquidity is reduced, if not brought on-par with that of traditional asset classes.
Investment options
There are two main options to earn money in real estate investment – capital growth and rental income.
In first option investor earns on growth of real estate property price e. g. buy now and sell for more in future. To this category also belong “renovation” projects when property value increases through completed repair
Second type of investment into real estate is purchase of real estate property for rental purpose e.g. Cash flow.
Below we will review 3 typical rental options of investment in Tallinn which suit well private investors
Mini apartment
12-16 m2 in size, in good location, price below 30 000 EUR. Typical rental fee 200-220 euro per month.
Highest return of investment 9-10%. Low initial investment.
More frequent tenants, most buyers are investors.
Single room apartment
28-33 m2, location in popular districts, price range 51 000 – 55 000 EUR. Typical rental fee 280-320 euro per month.
Good return of investment 6,6-7%. High liquidity on real estate market. Highest demand on rental market.
Hard to find in good condition.
Double room apartment
45-55 m2, location in popular districts, price range 65 000 – 73 000 EUR. Typical rental fee 370-400 euro.
Good return of investment 6,5-7%. Good demand on rental market.
Lower return of investment and lower demand than single room flats.
Services for investors
Do you plan your first investment or looking to expand your portfolio? We invest in real estate ourselves and using our experience you can make investments save and with decent returns. In order to fulfill different investor needs we provide wide range of services for investors.
- Consulting
- Acquisition of real estate properties
- Property management service
- Increase income from existing property
- Real estate portfolio optimization to raise income
Questions? Contact us!
Case studies
Here we put case studies for investors to make real estate investment faster, more profitable and easier. We truly believe that sharing best practices we add value to our customers.
Investor, Sõle 18
Case study of experienced investor, who was looking to add additional apartment for rental purpose. His concern was to acquire property, which could deliver more than 10% ROI. During consultation we...
Continue readingPrivate investor, Vana Kuuli
Case study of private investor who was looking to buy additional apartment for rental purposes. His concern was to acquire property, which could be used in future for his children as living place. We...
Continue readingPrivate investor from Sankt-Peterburg, Kotka 1
Case study of private investor from Sankt-Peterburg who was looking for options to invest money in rental apartment in Estonia to save her investment and get additional income to...
Continue reading