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Investing in housing has become unprofitable: what should those who bought an apartment do?
The benefits of reselling residential real estate in Russia have become similar to placing funds on deposit.
As experts explain, just a few years ago, an apartment purchased as a long-term investment during the excavation phase could bring a profit of about 50% when sold after two years.
The reason for such high margins is that the risk associated with the initial investment in construction was high. However, the situation changed dramatically with the advent of escrow accounts. Citizens' funds were reliably protected by the state.
This has led to a sharp reduction in the stage-by-stage difference in the cost of purchasing a house under construction. The price of a finished apartment today and the price at the start of housing construction may differ by only 20%, writes Rossiyskaya Gazeta.
With central bank refinancing rates high and likely to reach nearly the same level soon, it has become easier for investors to put money into bank accounts than into construction.
Experts recommended that people who have already bought an apartment as an investment start renting it out rather than selling it. This is especially true if the house is located in a resort town or an area with rapid labor migration.