Take for example the average Moscow apartment building in the panel area of 80 square meters and cost 300,000 dollars (3750 dollars per square. Meter). This apartment can rent for about $ 1200 per month, amounting to 14,400 dollars per year, ie 4.8% per annum.

For comparison: with the same 300,000 dollars in the bank, you can earn 9% per annum (27,000 dollars) in the medium term state bonds - 7% per annum (21,000 dollars), a closed-end mutual funds real estate - 15% per annum (45,000 dollars).

When renting the apartments should also take into account the 13% tax on individual income, utility payments, cosmetic repairs, the cost of furniture and household appliances, etc. As a result, the owner of the apartment is no more than 10000 dollars.

According to the classical scheme, whereby the value of property is one hundred times the rental rate, the price of such apartments to be 120000 dollars. On the other hand, if the apartment is 300,000, of dollars will need to be rented at least for 2500 dollars, and it is almost unreal.

Should I invest in real estate?

Analyzing this example, seems to be possible to conclude that today there is no sense for investors to release funds from other investment projects in order to invest it in real estate.

But do not forget that in addition to rental income from a growing market value of most apartments. And although the price increases by 100% for the year wait is not worth it, even with price increases of 1% per month income will be 36000 dollars, but it's more than from a bank account. Without taking into account depreciation and maintenance efforts on the flat, we note one important detail: whatever behaved real estate prices in the first place, the apartment is always a fairly high residual value, and secondly, the apartment - an investment tool that can be `touch` and personally control.

So, invest in real estate still profitable. But it is provided that the above 300000 dollars available. If not, become an investor or just a happy owner of property can only be through the mechanism of the mortgage, but it is - a pledge of its ownership, high interest rates and various additional payments that reduces the attractiveness of the investment project.

Overestimated a home in Moscow?

Another conclusion which suggests itself: many metropolitan apartments, such as prefabricated houses overvalued in Moscow on 2-3 times and now it is not of interest for investment even with a view to diversifying risks.

But investors in real estate, according to various estimates, make up only 15 to 30% of all buyers. The remaining 70-85% of citizens acquire metropolitan housing to stay in it. We continue to face an acute shortage of housing. If the U.S. and Europe for every citizen for 80 and 60 m, respectively, in Russia this figure is only 19.7 square. meter.

That's what says about this director of marketing for the Bureau of Real Estate Agent `002` Olga Pobedinskaya: `Of course, this does not mean that the flat, over-priced at 2-3 times, fall into the same amount in value. Can not think only of economic categories. There are significant psychological factors. Owning real estate in the capital - means possible, prestige and social status. In addition, for many citizens housing continues to be the only obvious way to save money and investments. Construction output is small, as well as the incomes of most people. But even in a huge deficit (at current prices) a proposal for the housing market today is already far exceeds demand. I assume that in this situation, real estate prices may drop slightly `.

The assertion that the proposal for the housing market today is already far exceeds the demand can not be unambiguous. The current level of prices in Moscow have long exceeded the real purchasing power of the Muscovites. But, unfortunately, it does not matter in terms of supply and demand, as well as at the prestigious Moscow for more than 70% of real estate is bought not by Muscovites, but citizens from other regions, where the housing problem is solved or no investment in real estate do not attract .

Whether the decline in Moscow housing prices?

Simple economic law that states: if demand exceeds supply, prices rise. You can talk about any number of Moscow's overheated market, but while in the capital, there is a demand for housing, which significantly exceeds the volume of supply, property prices will continue to grow.

According to surveys, not in need of better housing conditions, only 19% of citizens. With regard to the proposal, the possibility of growth of housing construction in Moscow have been exhausted. It is related to a decrease in the attractiveness of investing in real estate, and the lack of free space for new construction. Construction of new homes in the capital requires relocation of demolished buildings, the output of industrial enterprises outside the city limits, that is, significant financial costs. At it's not necessarily agree with investors who are accustomed to getting significant profits with minimum investment.

So, housing prices in Moscow simply can not grow. Of course, in the future it will not, as it was in late 2005 - early 2006. Specialists have the market there are two scenarios. Some say that rising prices (not the price, but their growth!) Significantly reduced and approximately 0,5-1% a month. Greater increase in the market supposedly not survive. Others (and they believe once more) argue that even if it is slow and happens, it will last long: a maximum of a year and a half. And in the long term, Moscow real estate will still be more expensive on average by 20-25% per year.

Which projection to believe - this is personal matter, as well as a personal matter for each to decide where to invest money (unless of course they have). And to the question posed in the title of the article, you can answer this: buy an apartment in Moscow is ... just very expensive.