How to check real estate in Ukraine

How to check real estate in Ukraine

Dmytro Dubilet plans to launch an early investment fund and invites Ukrainian entrepreneurs to cooperate. Since 2018, there is a Ukrainian startup fund in Ukraine, initiated by the Cabinet of Ministers of Ukraine, which provides funding for projects at different stages of development – both those who have an idea and those who are fully operational. Grant amounts range from 25 to 75 thousand dollars.

Nation of startups

“Globally, any new business is a startup, it is simply considered that a classic startup is focused on explosive growth and has a unique innovation. For two years now, Ukraine has been a nation of startups. There are such in the real estate market. The problem is that they are often like an unloved child. As a co-founder of a startup company, I can say: you are either in the core business or a startup,” says Andriy Ryzhykov, CEO and managing partner of DC Evolution and ITP co-founder.

Vladimir Kopot, CEO of Monitor.Estate, an online real estate legal inspection service, agrees. “This year we also joined the pitch day, but did not receive funding, although this is not the limit and we can apply again. Among the fund’s remarks was that we are growing slowly. The startup was a year old and, it would seem, during this time it was possible to conquer Europe. I partially agree with them, but if we went the way of finding an investor, then we would move faster, but my partner and I decided that we are developing on our own, gradually, slowly, because in addition to the startup there is a main job that allows you to earn for yourself and for a startup,” adds Volodymyr Kopot.

Check the testers

The real estate market in Ukraine is quite large and chaotic. Every year the number of new buildings grows, and accordingly the companies accompanying the agreements. “For some reason, it is believed that the real estate inspection market is a very simple market, where you can throw ads on Facebook for $ 5 and you will have a shaft of customers. That’s why we’ve been watching projects like ours for some time now,” says Volodymyr Kopot. However, the expert urges to be careful – quite often it is lawyers for whom real estate is not a profile, and therefore do not have to be sure of the results of inspections.

“We are trying to build a level of trust that must grow constantly. By and large, clients want to know whether to buy or not, but as a lawyer, I understand that I am responsible for the information and cannot simply give a recommendation because I am not involved in the decision. The only thing we have to do is for the client to make an informed decision, and not just point a finger at the sky,” adds Volodymyr Kopot.

Pay now to save in the future

Buyers of residential real estate can be divided into three groups: the first conduct an inspection of the objects themselves, the second with the help of lawyers, the third focuses only on advertising and their own sense of security. “I am convinced that the outsourcing of a specialized specialist is definitely cheaper than trying to figure it out yourself, and in addition, there is a guarantee of quality and relative peace of mind for the money invested,” says Andriy Ryzhykov.

It is difficult to conduct an inspection on your own – a person is too deeply involved in the process and can inadequately assess the risks, reacting to colored billboards and beautiful promises of a developed infrastructure. In addition, for example in quarantine, inspections have become even more difficult. “Officials have been quarantined, there is complete anarchy in electronic registers. Official inquiries are now answered according to their own invented schedule,” Andriy Ryzhykov comments.

Consciousness grows

“Compared to the costs we incur when buying real estate, the services of a lawyer are very ridiculous. In the states it would cost 5-7 percent of the contract, and in our country it costs from 100 to 300 dollars. Today, more and more buyers understand that buying a certificate for $ 20, they save 50-100 thousand dollars, because at least they are reinsured and, understanding the risks, they consciously go or do not go to them,” adds Volodymyr Kopot.

According to the expert, having received a negative opinion on the object, those clients who come offline, 90% rely on its results and agree that it is better to buy an apartment in another apartment. From the beginning of the quarantine, there were those who applied to terminate contracts with developers, especially in the Kyiv region. “One of the brightest examples is when after paying 40 thousand dollars of the first installment, the buyer returned only about 10 thousand dollars after the termination. The fact is that penalties are imposed on the amount of the contract, not the down payment, so you need to read very carefully what is written in the contract, and especially in small print. At this stage in the development of the project and the construction and real estate market in Ukraine, we want clients not to fall for such outright abuses and machinations as Wojciechowski’s objects or the “monster house” in Podil,” sums up Volodymyr Kopot.