In Kazakhstan real estate prices have risen, with prices in some regions of the country almost equal to those of the capital. Experts believe it's better to invest money in residential and commercial real estate abroad. How to do it profitably? Togzhan Sakharbekova, founder and CEO of WWT Group real estate agency, talked about its new products in Forbes Kazakhstan.
Togzhan, this year you offered new products for investing in real estate abroad. Tell us about them.
We have a unique product, Property Secure, which is currently one of the most reliable and beneficial offers on the real estate market. We recommend potential customers to purchase overseas real estate, mainly in the United Arab Emirates, as the investment company is located there. These should be comissioned residential properties with a five-year payment plan. By paying a 20% down payment to the building company, you can get a cashback of up to 96% of the property's value. That is, in the end the property will cost you only 4% of its cost within five years. But if the payment plan is shorter, for example three years, then the cashback usually comes to around 40%.
Who came up with the idea to develop and launch such a product?
Property Secure was developed together with an investment company. It invests money in the market and earns not only for itself but also for the investor. No developer or any other company can offer such a product.
What markets are currently attractive to investors from Kazakhstan? Have they engaged with Property Secure?
With this product, we help to purchase investment property in the Emirates and Turkey. Under the Property Secure program in the UAE dozens of investors from Kazakhstan have already become owners of appartments and villas. The minimum cost of real estate is $100,000. For example, in Turkey, Alanya region is now becoming popular. In the Emirates, Dubai is still at the top. People want to have there both investment property and a second home.
What types of real estate can be considered investment property?
An investment that pays off within 10-12 years in terms of passive income. Otherwise, it is not considered an investment. There are cases when people put money in and don't see returns for 15-20 years. If you want to turn a profit sooner, you need to diversify your real estate portfolio and make it not just an asset but one of your sources of income.
What advantages does Property Secure provide?
By using the Property Secure product, you purchase liquid real estate from leading developers in top cities around the world at prices below the market. Even if after 5 years the investor wishes to sell the real estate for a price below the market, for example, for 20%, anyway he will still win.
Businessmen strive not only to multiply capital but also to invest money in their status. And this is a different level - a higher degree. What can you offer to your most demanding customers?
We have an exclusive product for those looking to purchase luxurious apartments from The Ritz-Carlton hotel chain. This can be done through Property Secure. The number of apartments is limited, so the purchase of such apartments speaks of a high lifestyle, status, and prestige of its owner. Buying The Ritz-Carlton property around the world, you are automatically becoming a member of the worldwide club of its residence owners. By the way, The Ritz-Carlton apartments can be purchased via Property Secure even in Astana.
Besides prestige and the property itself, what else does an investor get?
An investor who has chosen appartments in The Ritz-Carlton project in Astana pays 30% of the cost to the developer while the remaining 70% is invested in an investment company. The customer has two years to fully purchase these apartments. The investment company manages the customer's money and pays the builder the remaining amount with the earned funds. After two years, the buyer of the apartments in The Ritz-Carlton Astana will receive a cashback of 30%. That is, the property will cost him 70% of the real market value.
There is currently a trend of collective investments. When investors want to put money into buying expensive, luxurious real estate but do this in a business tandem.
Collective investments are rapidly growing and serve as an excellent instrument to diversify portfolios in large projects with small investments. We are developing collective investments in international real estate. A pool of clients and a legal company is created. Real estate is registered to this company in a chosen country. All investors who joined the pool share equally in the return of investments. As we offer a comfortable sum to invest, we select projects with high return on investment.
How much do I need to invest in the project?
For example, we are picking an object that is worth $1 million - that is the minimum price. Ten people want to buy it. They all contribute equal amounts of $100 thousand. It is like a collective piggy bank. Every year each person will earn 10% from their original investment.
How many people can participate in collective investment?
From two to ten people. The minimum investment amount is $100 thousand and you can choose your own maximum amount. The income will be paid out proportionally to the amount invested.
Do you only work with investors from Kazakhstan?
Our head office in Kazakhstan is located in Almaty and another one is in Astana. Our neighbors from Kyrgyzstan and Uzbekistan have also shown interest in overseas investment properties. Therefore, we opened offices in Bishkek and Tashkent. In such a way, we are paving the way to the international real estate market for the citizens of the Central Asian countries. They can take advantage of all our programs.
How can I invest my money to guarantee a return?
Today having achieved a certain financial stability, Kazakhs and other residents of Central Asian countries understand that their real estate portfolios need to be diversified. It is disadvantageous to have five apartments in one city. The major property can be located where the investor is living himself. For example, this can be one investment apartment. The others should be in different cities and countries. Therefore, with diversification an investor can earn.
It’s hard to turn down the chance to purchase a prestigious international real estate with a cashback reward. Do you think the main market will come to this?
I'm sure that such products as Property Secure will occupy a certain niche in the market. Everyone benefits in this project. For the developer, Property Secure provides a guaranteed sale of real estate. For the investment company – a profit from the sum at which the investor entered. And for the investor – highly marketable real estate at a price lower than the market. Such products will now start being demanded in the market. Eventually I think, through these tools people will start to buy real estate more than through banks.
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