Residential Properties in Moscow
The Russian International Property Market
Considering the scale of current developments and the number of properties now available, and that a private property market hardly existed before 1990, the Moscow market has developed with exceptional rapidity, and in so doing has avoided following 'normal' patterns of development.
One factor in this was the excessively high and well-publicised purchasing of the early 1990s, which was such that it aroused some suspicion as to the legality of the funds being used.
Since the 1998 crisis, Russia, and especially Moscow, has undergone a dramatic change. A degree of political stability and increasing international acceptance have helped fuel an economic boom.
Increasing numbers of Russian citizens themselves are now looking for international property and creating investment portfolios.
Nonetheless, the market still does not follow traditional methods, though returns are high for developers and specialists in international real estate who understand the particular requirements and traditions of this market place.
Buy to Live
One option for people moving to Moscow and working for a company is to use their housing allowance towards buying an apartment in Moscow instead of renting one. It is possible to raise funds both abroad and in Moscow itself. Expatriates who can show that they have either sufficient income in Russia or abroad may well be able to obtain one of a number of mortgage options using both Russian and foreign banks. Current Russian real estate legislation and financial policy also tends to encourage long-term foreign investment in property. In law there is no distinction between Russian citizens and expatriates buying real estate. The proceeds from the sale of any property which has been owned by the same person for three or more years are tax exempt for people resident in Russian according for tax purposes.
Buy to Rent
There are still many apartments that haven't yet been renovated or sold sitting in some of the most prestigious areas of Moscow's historic centre. Many of the elegant buildings dating from before the 1917 Revolution are unique and beautiful. Among their features are high ceilings, mouldings, entranceways and halls, fireplaces, all waiting to be renovated and restored to their fromer glory When such apartments are tastefully renovated, the rental income can yield an 8- 15% annual return on your investment. One particular feature which investors should consider is proximity to an Anglo-American school, due to the current lack of viable rental properties nearby.
