Earnings in Real Estate - How to Act to Avoid Losing Money.

Investing in real estate remains one of the most reliable ways to increase capital in 2025. Significant price growth, demand for rental properties, and new projects create favorable conditions for investors. However, as experts emphasize, without the right strategy, risks may outweigh benefits.

A common mistake among beginners is to invest without clear planning. Without defining goals, expected profits, investment term, and type of property, risks significantly increase.

The most profitable models in 2025:

• buying at the foundation stage with the intention of resale (possible value growth of 30-40%);
• investing for long-term rental — stable monthly income, but requires additional renovation costs.

'Clear planning with calculations and specific benchmarks is the key to success'

Choosing property without considering location reduces profit

Location is a key factor determining the attractiveness of an object. Investors often choose areas in 'promising' neighborhoods without considering the actual needs of future tenants or buyers.

Important aspects include:

• availability of transport, schools, and kindergartens;
• the social background of the area (calm, safety, noise level);
• the state of ecology (river, parks, green zones);
• domestic development prospects of the area.

Legal risks in real estate can lead to serious problems

Ignoring the legal check is another common mistake. Even in 2025, cases of fraud and bankruptcy of developers remain. Therefore, a detailed document check is not just a recommendation but a mandatory requirement.

Key documents to consider include:

• construction permit;
• urban planning conditions;
• ownership or usage rights for the land plot;
• developer's license;
• technical and project documentation.

Hope for inflated profits can lead to losses

Investors often expect to obtain significant growth in one or two years without additional efforts. However, in 2025, the situation is more complicated due to the war, inflation, rising prices for building materials and taxes, so it is important to be realistic.

To assess the effectiveness of investments, it is useful to use the ROI formula:

ROI = ((income - expenses) / expenses) × 100%

Example: spent 200,000 hryvnias, received 250,000 hryvnias after a year.ROI = ((250,000 - 200,000) / 200,000) × 100% = 25%

Lack of an exit plan complicates risk management

A 'Plan B' is always a useful thing. If the main strategy fails, it's important to have a ready plan of action in advance:

• when you are ready to sell the property;
• what is the minimum acceptable price;
• which sales channels to use;
• which expenses you are willing to incur (realtor commission, etc.).

Diversifying the investment portfolio helps reduce risks

Investing in a single apartment always carries risks. Experts recommend for 2025 to distribute money among several formats:

• residential and commercial real estate;
• houses at the foundation stage + ready objects;
• objects in different cities or regions.

Common mistakes of beginner investors

Here are the main mistakes that often lead to losses:

• investing based on emotions rather than analysis;
• choosing an object without considering the needs of future tenants;
• underestimating total costs;
• trusting a developer without verification.

How to stay in touch with the real estate market

1. Avoid hasty decisions. Investments are about calculations, not drawings or promises.
2. Think like a tenant. Choose apartments with well-thought-out planning, great views, and convenient infrastructure.
3. Be confident in all expenses. Add renovation, furniture, taxes to the budget to have a clear idea of the financial side of the matter.
4. Check developers. Prefer companies with a good reputation.
5. Monitor the market. Keep track of prices, new projects, and changes in the economy to be prepared in advance.

According to the report, the Verkhovna Rada approved in the first reading the draft law No. 12377 'On the Basic Principles of Housing Policy', which is of great importance for the further reform of the housing sector in Ukraine and can contribute to attracting foreign investments.

Also, the attention of homeowners and commercial property owners has turned to issues regarding property taxation in Ukraine. This is evidenced by the circulation of messages from tax authorities. However, not all citizens know how and where to look for these documents and the deadlines for submitting responses.