tag:blogger.com,1999:blog-4194848132778607550.post2374782301788827161..comments2024-03-28T02:23:23.177-07:00Comments on JohnnyFD.com - Follow the Journey of a Location Independent Entrepreneur: I Bought Property in Kyiv, Ukraine (Kiev) - Here's Why! Johnny FDhttp://www.blogger.com/profile/16606448957561483887noreply@blogger.comBlogger37125tag:blogger.com,1999:blog-4194848132778607550.post-40248381897164805402022-11-20T15:12:05.146-08:002022-11-20T15:12:05.146-08:00Not sure what value you see in Ukrainian real esta...Not sure what value you see in Ukrainian real estate. Some places are cheap for a reason. Notwithstanding the war, you are talking about a country that has been plundered by a group of corrupt oligarchs, with most of the country's industrial base having been stolen and the wealth stripped into offshore bank accounts. Ukraine was basically the richest part of the USSR in 1991 with an outstanding industrial base cable of making everything from airliners to space station components, bigger than the industrial base of today's Germany. Now Ukraine (perhaps tied with Moldova or Tajikistan) is the poorest former USSR republic. Would personally avoid investing in any country with armed insurgency movements or hostile neighbours. Russia is currently blowing up the power supply of the country, meaning that probably by early December most of the cities will be without electricity, heating and a lot of running water.Davidhttps://www.blogger.com/profile/18339667635418791295noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-54812337516469438942021-12-16T00:41:11.541-08:002021-12-16T00:41:11.541-08:00Crazy Expensive!Crazy Expensive!Dietrich_Der_Grossehttps://www.blogger.com/profile/02538253435212325846noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-83518030245559991722021-12-11T16:05:02.580-08:002021-12-11T16:05:02.580-08:00Johnny FD, Congratulations on your new apartment. ...Johnny FD, Congratulations on your new apartment. I hope that you will get to enjoy it for a long time. I am planning to tread your path, 100K+ investment for a UKR permanent residency , hopefully in 2022.<br />Great info also from Ukr22 and Cheyenne. However I don't agree with Capital Gains Tax. I've read that in Ukraine if a Ltd is closed all its assets incl. real estate directly transfer back to the owner. If the company closure is deemed a sale, you should be able to get around it with an off market evaluation. I would plan to just close the Ltd after having received the PRP card. Furthermore, IRS taxes US persons, physical or legal, and non-US-residents on US-sourced income. Johnny and his Ukrainian Ltd company are two separate entities. An Ukrainian legal person (Johnny's Ltd in this case) selling an asset and making a profit on sale thus leading to CGT in Ukraine does not create a US CGT lax liability on the owners of the company, unless they transfer it back as dividends. Anyway, just closing the company looks like the logical choice to me.MGhttps://www.blogger.com/profile/09601628712595981356noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-49746334677005645152021-11-28T00:54:46.902-08:002021-11-28T00:54:46.902-08:00Great info, thanks Cheyenne!Great info, thanks Cheyenne!Johnny FDhttps://www.blogger.com/profile/16606448957561483887noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-42579087669088785382021-11-28T00:53:28.273-08:002021-11-28T00:53:28.273-08:00I think Masha got overwhelmed with clients after I...I think Masha got overwhelmed with clients after I mentioned her in the video, which is why I no longer give out her info to people who ask.Johnny FDhttps://www.blogger.com/profile/16606448957561483887noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-62276044496084908102021-11-21T13:15:02.191-08:002021-11-21T13:15:02.191-08:00I have been enjoying your journey Johnny, but oh m...I have been enjoying your journey Johnny, but oh my I could see you making so many mistakes :-) I had a real estate business in the Philippines for 7 years, selling islands and beaches. They had a saying there that on every beach is buried a Foreigner's dreams. I also lived three years in Dubrovnik in what is now Croatia, and bought, renovated and sold properties as a business. <br /><br />The first mistake you made (as all do) is to deal with agents, they cannot really be regarded as agents, they are really only middlemen. They way they work is to find any sellers, and then on top of the owner's price "bottom line" they add what we called an "overprice" AS WELL AS a commission! So in reality you are often negotiating with the agent, not the seller. On top of that the owners are asking an inflated price because as we all know all Foreigners are rich right?<br /><br />Because of how the "agent" works they get very intransigent about the price as they have made an agreement that the price they get is non-negotiable, and to get it lower you have to get the agent to split part of their commission with them, which of course the agents abhor. <br /><br />The agent's one and only consideration is selling you the properties they make the most commission on, not the ones you really want or desire. Also the agent's fight amongst themselves and make false listing to throw each other off. <br /><br />Paperwork? Uhhh don't get me started. It's always the same in countries with poor rule of law. No matter how hard you check you can run into legal problems, and nice to see that in the end you got a good lawyer as they are worth their weight in gold. <br /><br />I saw that you have been inundated with request to meet in person, and offer advice on real estate. Why not become a professional? You sure have the experience, and people trust you. My only advice is do not get a local partner. I did see there is one foreigner already offering real estate in Kyiv on the net, so you should be able to. Despite the fact my Filipino business partner stole everything from my business, I made a lot of money along the way and enjoyed the job. <br /><br />By the way as far as doing renovations here are the contact details for some very reputable Architects who have done projects in the area you live. <br /><br />Emil Dervish<br />https://emildervish.com/<br />https://house-diaries.com/reitarska-a-studio-full-of-light-in-kiev/ <br />Kyiv, Ukraine / Mikhailovsky Lane, office 100 <br />+380 (68) 887-20-78<br />emildervish@gmail.com <br /> <br />Birdsnest (Amazing apartment he renovated)<br />https://www.yatzer.com/birdsnest-apartment<br />https://www.remodelista.com/posts/apartment-space-planning-lessons-birdnest-kiev-ukraine-architect-emil-dervish/ <br /><br />Sergey Makhno (Specialises in Lofts)<br />https://mahno.com.ua/en/sergey-makhno <br />https://mahno.com.ua/en/blog/post/loft-and-how-it-look-like <br />https://www.design-inspiration.net/inspiration/sergey-makhno-architects-frankie-lamp/<br />https://www.homedsgn.com/2014/03/11/the-podil-loft-apartment-by-sergey-makhno/ <br /><br /><br />Vilchinskaya Design Bureau<br />https://vilchinskaya.com.ua/en/home/<br /><br />Before commencing any renovation I recommend reading Peter Mayle's "A Year in Provence", different country but the story will be the same. <br /><br />Best of luck in your endeavours, and hope all is well in Ukraine. <br /><br />Cheyenne Morrison in Australia<br />Cheyenne Morrisonhttps://www.blogger.com/profile/14743694732911497119noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-19842940708778660592021-11-21T04:29:12.247-08:002021-11-21T04:29:12.247-08:00Hi Johnny,
This is just a feedback. It's up t...Hi Johnny,<br />This is just a feedback. It's up to you if you want to share with the public. I contacted Masha Filimonova to help me to find an apartment for rent. I think I found the right Masha by googling for her. We exchanged 2 emails and each time it took her 10 days to respond! I've suggested to reach each other quickly on these messaging apps, but she ignored such a request. If she isn't interested in the rental market, she could have just said so but responded with interest yet VERY SLOWLY is not professional. As you may know, landlords in Ukraine don't want to wait more than a few days. Thus, it's a waste of time to look for an apartment too early. Now, if you have only a few days left, you cannot count on an agent that takes 10 days to get back to you! I ended up going with a different agent and quickly got an apartment near Pecherska station. Her name is Alexandra Tkachenko with teren.kiev.ua/enNew in Odesahttps://www.blogger.com/profile/17242620845963248243noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-14213726019827363792021-10-27T02:56:25.642-07:002021-10-27T02:56:25.642-07:00If I understand you correctly, you are saying the ...If I understand you correctly, you are saying the capital gain tax will be based on appraisal, which you have no control in theory, instead of the actual sale price, which you do control. I said in theory because in a country like Ukraine, I assume one can often find an appraiser, whether governmental or private, to write it up at the value you want it. On the other hand, is it really necessary to transfer a property to one's own name? Parking one's assets under a company protects him against lawsuits, divorces, etc. in many cases. Certainly, a company can get sued too. But if it is just a token company created solely for the purpose of holding assets and not interacting with the public, it is unlikely to get sued because to sue someone, the plaintiff has to show standing, ie. he is personally harmed. Just my $0.02New in Odesahttps://www.blogger.com/profile/17242620845963248243noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-15438852938483396262021-08-28T02:13:42.641-07:002021-08-28T02:13:42.641-07:00Unfortunately only forcing can help to stop use of...Unfortunately only forcing can help to stop use of wrong offensive spelling.Ляшенко Сергійhttps://www.blogger.com/profile/04867011482481923764noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-50484525859328912722021-08-05T06:33:25.879-07:002021-08-05T06:33:25.879-07:00It's one of the weird bureaucratic complicatio...It's one of the weird bureaucratic complications of Ukraine, but it's only because it had to be 100% legal and official as am going through the permeant residency process. Normally you would just buy it in USD as most sellers rather hold the more stable currency. <br /><br />Johnny FDhttps://www.blogger.com/profile/16606448957561483887noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-76332983458347005082021-07-28T10:38:42.633-07:002021-07-28T10:38:42.633-07:00Hey. Great article. Can i ask why you converted fr...Hey. Great article. Can i ask why you converted from USD to UAH only to convert back. Is this because the seller surprised you last minute or is it because there was some ukraine legal reason for first having it in UAH for the document process. I'm just working out myself this leg. <br />jonnoreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-82970011611828612092021-06-21T03:46:29.364-07:002021-06-21T03:46:29.364-07:00I bought the property in my company's name, no...I bought the property in my company's name, not my own. You are correct about the 1 year rule. As for the transfer, the property gets reappraised when I transfer it, so I'll need to pay capital gains tax if it appreciates.<br /><br />As for rental properties, OLX is the most used one. But you're right. The agents here are scumbags and have spammed all of the pubic rental sites so it's almost impossible to connect directly with the owner. If you speak Russian however, there exists some facebook groups under the name "Apartment rentals without agents in Kyiv" <br /><br />I hope things will change in the future, but for now, it's like New York's RE agent scheme, you're forced to use one in most cases. <br />Johnny FDhttps://www.blogger.com/profile/16606448957561483887noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-29175120936972591682021-06-13T03:48:39.372-07:002021-06-13T03:48:39.372-07:00It's news to me that one can buy a property in...It's news to me that one can buy a property in his own name and still get permanent residency (PR) if he owns it for 5 years. Previously, I only knew one could buy under a company's name to get PR. Anyway, Ukraine is hardly a stable country. If I can buy under an LLC and get my PR in one year, I will not entertain a 5 year option. This is a country that has had 2 revolutions in the past 20 years, ie. 2004 and 2014. 5 years are too long to wait. Who knows how the next revolution will change the law! <br /><br />Neither do I understand the capital gain issue when transferring the property from one's own LLC to oneself. He is both the buyer and seller. Why would he sell it to himself with a gain? <br /><br />Lastly, if Ukraine has reliable websites like Zillow back home, I would love to know. I've only arrived 20 days ago. Looking for a rental apartment was a huge pain! I know renting and buying are two different subjects, but both are served by these same scummy real estate agents! First, they inundate garna.net and olx.com with properties no longer available to bait new customers! NOT a single property I contacted on garna.net was actually available. After going through 3 agents, I realized this is how things are and an absolutely honest agent doesn't exist. I ended up going back to my first agent, at least he is most responsive, who then got me a unit at where I want to be. Had I contacted only units directly listed by owners, I would have saved some money. However, NOT a single property in my price range was available by owners in the neighborhood I want to be. I imagine I would face the same challenge if I choose to buy one of these days since I am quite particular about an exact building or street instead of anywhere in the 1-mile radius of a landmark, for example. Am I paying higher than the average price for demanding to be within 80 meters of Deribasivska St. in Odesa and the City Garden is literally behind my wall? Yes, obviously. However, life isn't all about money. I enjoy my neighborhood. That's most important. New in Odesahttps://www.blogger.com/profile/17242620845963248243noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-89255973945484796822021-05-30T12:30:37.283-07:002021-05-30T12:30:37.283-07:00I'm still going though this process. Finding a...I'm still going though this process. Finding a good contractor in Ukraine is almost impossible. Everyone I've asked didn't like who they used for one reason or another. Johnny FDhttps://www.blogger.com/profile/16606448957561483887noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-11606316902565036452021-05-22T19:49:23.657-07:002021-05-22T19:49:23.657-07:00Johnny, how did you find a contractor for the reno...Johnny, how did you find a contractor for the renovation in kiev? Also though the cost range for the renovation might be quite different from person to person, how much do you expect to renovate your condo?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-45009250013022283322021-05-13T23:37:28.587-07:002021-05-13T23:37:28.587-07:00I wrote Kyiv all throughout the article. It takes ...I wrote Kyiv all throughout the article. It takes time for people to know what city/country I'm talking about. Stop forcing it as people will stop listening to you.<br /><br />"capital city of Kiev (Kyiv) Ukraine."Johnny FDhttps://www.blogger.com/profile/16606448957561483887noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-37807793297244083832021-05-13T23:35:26.737-07:002021-05-13T23:35:26.737-07:00Hey Anne, i'm still going through the process ...Hey Anne, i'm still going through the process over 2 months later, so it takes a while. =) <br /><br />As for a bank account, the best way is to open an investment account at a local bank and transfer the money from US to Ukraine in USD, then from there you can move it around or give the seller USD or UAH. <br /><br />I'll update this post once everything finally completes, hopefully by next week.Johnny FDhttps://www.blogger.com/profile/16606448957561483887noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-42339691623854448262021-05-09T11:56:31.926-07:002021-05-09T11:56:31.926-07:00Hi Johnny, this is very interesting to me as I am ...Hi Johnny, this is very interesting to me as I am coming to Kiev for the first time this July. Can you say more about the process of having a bank account there as an American? Which bank did you use and how did you manage the reporting requirements for American dollars? I am considering buying a house outside of a city in Ukraine, but I am wondering how much time it takes to deal with the paperwork, the number of steps, etc. Thanks for your very interesting content!Vagabond Annehttps://www.blogger.com/profile/02886296514249100036noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-32510671214309564192021-04-26T13:36:21.155-07:002021-04-26T13:36:21.155-07:00The big question is then, how do we buy directly f...The big question is then, how do we buy directly from owners? I agree that Real Estate agents are mostly useless and don't add enough value to justify asking for thousands of dollars. Johnny FDhttps://www.blogger.com/profile/16606448957561483887noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-23719172835578805452021-04-26T13:34:04.844-07:002021-04-26T13:34:04.844-07:00Thanks Jeff! It was a long, tough decision, but I&...Thanks Jeff! It was a long, tough decision, but I'm glad I went through with it. Johnny FDhttps://www.blogger.com/profile/16606448957561483887noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-24525533883519152682021-04-26T11:34:44.553-07:002021-04-26T11:34:44.553-07:00The IRS can through local courts levy a tax arrest...The IRS can through local courts levy a tax arrest in ukraine . Its not impossible . But quite lenthy process here. And they can freeze any bank accounts easily. They can also take your passport away if you owe any taxes over 50k. Lastly they can arrest you internationally if they really want to go that far. The IRS tentacles on citizens is just as firm in ukraine as they are in the states.Ukr22https://www.blogger.com/profile/04272980285966101505noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-21411098384518753682021-04-26T11:28:56.891-07:002021-04-26T11:28:56.891-07:00I do not trust any agency or agent. I been living ...I do not trust any agency or agent. I been living on this side of the world for ocer 15 years. I understand the culture and how things work here as good as any local i have <br />seen and experienced alot. I have never ever seen any agent that truly cares sbout either buyer or sellers. I assure you you are paying premiums for properties and everything else thry offer. In i know where they arr showing you the properties i saw in the videos. The same sources i get direct to owner properties. And they are quoting yiu premiums of 12 to 15 percent. Plus their 3 to 5 percent comission. So in essence you ard paying them 20 percent over what the owners price is. Of course they will offer you the world. Ukr22https://www.blogger.com/profile/04272980285966101505noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-10473737885577178622021-04-25T12:25:08.432-07:002021-04-25T12:25:08.432-07:00Welcome to Ukraine. But for the future, #KyivNotKi...Welcome to Ukraine. But for the future, #KyivNotKiev! This is a principal difference. Kyiv is in Ukrainian, Kiev is Russian. Ukraine is not Russia!columbus2https://www.blogger.com/profile/06298950026341468465noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-48737017838700459812021-04-25T12:06:22.425-07:002021-04-25T12:06:22.425-07:00Thanks for the insights and the advice. You're...Thanks for the insights and the advice. You're right about the capital gains tax. I was trying to refer more about the IRS can't take my international property away if I ever went bankrupt in the USA for any reason. But yes you're right about the tax implications.Johnny FDhttps://www.blogger.com/profile/16606448957561483887noreply@blogger.comtag:blogger.com,1999:blog-4194848132778607550.post-10727244248092438752021-04-25T12:04:32.463-07:002021-04-25T12:04:32.463-07:00Thanks for the tips and sharing your experience! I...Thanks for the tips and sharing your experience! I've actually hired a different agent for my investment property that i'm looking for here, this guy seems a lot more useful than just being a salesperson. As he's more of a full stack investment partner, as he'll manage the renovation and property rental afterwards as well. Lets hope they all one go well. =)Johnny FDhttps://www.blogger.com/profile/16606448957561483887noreply@blogger.com