Lena and I are buying an apartment in historic downtown Mogilev

Originally Posted by Khashyar

Hi Everyone,

For over a year, Lena and I have had on our mind to buy an apartment in Mogilev, so that we could have a place for our friends and us to stay when we were in town, as well as so that we could help Lena's parents with the rent that it would generate.

About 3 weeks ago, a friend of Lena's discovered a fantastic opportunity of an apartment for sale that is directly in the center of historic Mogilev, and a half block from the new European-style pedestrian walking area, restaurants, clubs, shops, movie theater, etc...). Lena's friend knew that Lena and I were considering purchasing an apartment, and so she told Lena's parents about it.

After Lena's father (who is a builder) and mother inspected the place a couple of times, we sent Lena's family the money to purchase it, and they have signed to documents and the apartment's "closing" process has begun.

Lena's dad is a builder and an interior designer, and he is going to gut the apartment and redesign ad reconstruct the apartment completely.

The apartment building itself is in a very historic part of Mogilev (that the government has been restoring into the prime social gathering and shopping district in Mogilev)-- we couldn't have asked for a better location. The apartment is on the top floor of a 3 story building that is about 100 years old (and survived the German invasion and near destruction of many Belarusian cities during World War 2). Lena's dad tells us that the apartment has nice high ceilings.

One of the reasons that we wanted to buy an apartment, is so that Lena's parents could rent the apartment out to short term renters (visitors to town, etc.) so that we could help Lena's parents financially every month and provide them with a bit more financial security.

When Lena's father begins work on renovating the apartment (he says that it will take him about a month to finish the renovation), then he will send us photos and I will post them here.

Khashyar

Originally Posted by mistermopar

Yes I remember the area quite well,so beautiful there.I think the $40-$45 per day is right on target.Or was that $40-$45 belarusain rubles per day...LOL

Randy

Originally Posted by martin3030

She said she would prefere us to go for a little place on the Black sea.
Apparantly there are no hotels there and its very cheap to buy some place to modernise.

Originally Posted by yodaamnot

Built during the Russian Revolution, if the walls could talk.

Originally Posted by Khashyar

I know...

I wonder what was happening in Mogilev at that time?

I wonder if Lenin ever visited Mogilev?

I should ask Lena's grandmother.

Khashyar

Originally Posted by Khashyar

Hi Everyone,

I wanted to post an update about the apartment.

The sale of the apartment became final last week, and the apartment is in Lena's grandmother's name (because in Belarus, seniors over 80 and who had a husband in the Second World War, pay no sales tax on buying property).

When Lena goes to Belarus later this year, her grandmother will give her the apartment as a gift.

The next step has been for Lena's father to apply for the permits necessary to install Gas and water to the apartment. He is also going to install new doors and windows.

After that, he will begin to work on the interior.

He is a master interior designer and builder, and he has been hired to do many high quality interior design/carpentry jobs in Mogilev. Except this time, he is doing the work for himself and his family

Things in Belarus always seem to take longer than expected, but renovation of the apartment is moving ahead slowly but surely.

I will keep you updated, and post more photos when I have them.

Khashyar

Originally Posted by mistermopar

Khashyar,the uncle that is living there,I can not remember his name.
If it is the same one that I met on my trip last year.
Is it Sasha????

Randy

Originally Posted by chippie

Khashyar,

If you do not mind sharing I have a few questions. If I remember correctly you said that the apartment is a one bedroom. How many total rooms are there?? What is the square footage?? What kind of estimate did you receive from Lena's Dad on the remodel??
I, like you, am from Southern California, and know that costs here are astronomical. This is food for thought for me. I am making notes for my trip in January. I may be in the hunt for some real estate.

Chippie

Originally Posted by Khashyar

Hi Chippie... Actually, the apartment is a large studio apartment with high ceilings in the most historic part of Belarus.

In Belarus, studio and one bedroom apartments are more desirable than 2 and 3 bedroom apartments because the government charges more for required utility payments for larger apartments, and so the avergae Belarusian citizen prefers smaller apartments that meet their needs.

I'm not sure about the square footage.

Since Lena's dad is going to be doing all of the work, all we are paying for is teh supplies. One of the largest expenses are buying custom windows for the front of the apartment (since it is a historic building and requires large specially-made bay windows.)

I would estimate that it would take about $5,000 to $10,000 worth of materials to remodel the apartment. This includes tearing out the electric wiring from the walls (which is from 1918 and I think are not actually inside the walls but running on the outside ), and redoing the kitchen and bathroom.

Obviously, much less expensive than buying and fixing up an apartment in California.

At the moment, the apartment is in Lena's grandmother's name (since she was not charged property sales tax since she is over 80 and her husband was a WW2 was veteran). (The taxes would have been high if Lena puchased it herself, or if I purchased it in my name). When Lena returns to Belarus for her next trip, she is going to have the apartment transferred to her name as a gift from her grandmother.

I personally don't know how legally safe it is to purchase property in Belarus as a foreigner, because I feel that there is a chance that in future, foreigners could be very highly taxed, or property may also have the potential of being taken away at the discretion of the government (because Belarus is a dictatorship still, and the government could create its own rules).

Khashyar

Originally Posted by Khashyar

I think that Lena will eventually be a dual citizen. Right now, she is a Belarusian citizen with U.S. permanent residencey.

I do think it is a safe investment (if it is owned by a Belarusian citizen). Since my first trip to Belarus in 2002, the average price of a one bedroom apartment has risen from about $5,000 to $20,000-$30,000. And I think that since Belarus is between Europe and Russia (almost the gateway country between the two), that prices in the long run can only go up.

Khashyar

Originally Posted by Khashyar

Yes, it's very doable for Americans.

The trick is to get the money to Belarus without your lady being charged 10% (or so) taxes on what you send. The Belarusian government and banks track Western Union payments pretty easily.

It is better to send an ATM card, and have your lady (if you have a strong rock-solid relationship) take out a few hundred each day over time, have her slowly deposit it in a local bank, and then compile enough cash to pay for the apartment.

Some we know did it that way.

Khashyar

Originally Posted by AkMike

Tanya and I bought a couple of apts. in a new building still under construction in Kiev. Just as an investment. Her apt. in Cherkassy was bought 6 years ago for $2K and similar ones are going for $25K now. I did a bank to bank wire transfer to get the money there W/O problems. But you have to have an account there already and know the "swift" numbers ect to facilitate the transfer.
The banks even pay 8% to 13 % on your savings accts!
Chippie,
You can use your Visa/Mc in just about any ATM/"ATB" over there to get cash. Same as here. Just make sure to use ones that the locals use so it's not going to be a set-up-scam to get your pin #.