Investment Property in Murmansk

Invest in Real Estate in Murmansk

Investment Property in Murmansk
Investment Property in Murmansk

Murmansk property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Murmansk .

Search Map of Murmansk Investment Real Estate

Murmansk (Russian: Мурманск lit. “Norwegian coast”; Finnish: Murmansk, sometimes Muurmanski, previously Muurmanni; Norwegian: Norskekysten; Northern Sámi: Murmánska; Kildin Sámi: Мурман ланнҍ) is a port city and the administrative center of Murmansk Oblast in the far northwest part of Russia. It sits on both slopes and banks of a modest ria or fjord, Kola Bay, an estuarine inlet of the Barents Sea. Its bulk is on the east bank of the inlet. It is in the north of the rounded Kola Peninsula which covers most of the oblast. The city is 108 kilometres (67 mi) from the border with Norway and 182 kilometres (113 mi) from the Finnish border. The city is named for the Murman Coast, which is in turn derived from an archaic term in Russian for “Norwegian”.

Benefiting from the North Atlantic Current, Murmansk resembles cities of its size across western Russia, with highway and railway access to the rest of Europe, and the northernmost trolleybus system on Earth. It lies over 2° north of the Arctic Circle. Its connectivity contrasts to the isolation of Arctic ports like the Siberian Dikson on the shores of the Kara Sea and Iqaluit, Nunavut in Canada on Baffin Island’s Frobisher Bay off the Davis Strait. Despite long, snowy winters, Murmansk’s climate is moderated by the generally ice-free waters around it.

Although there was a building boom in the early twentieth century’s arms races, Murmansk’s population has been in decline since the Cold War, from 468,039 (1989 Census); 336,137 (2002 Census); 307,257 (2010 Census); to 270,384 (2021 Census). It remains the largest city north of the Arctic Circle, with over 100,000 more inhabitants than Norilsk, Russia, and is a major port on the Arctic Ocean.

The financial stability of Murmansk has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Murmansk

 

Renting out your Murmansk buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Murmansk are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Murmansk and be prepared to change your initial outlook.
  • Thoroughly research the Murmansk location with a special emphasis on fringe areas outside the main Murmansk metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Murmansk.
  • Ensure that your target investment property in Murmansk appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Murmansk provides the secure knowledge that your money is working harder than it would in a local Murmansk bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Murmansk, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Murmansk property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Murmansk

Flipping property in Murmansk

 

Flipping property is when we advise clients to buy a Murmansk property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Murmansk market has a time to react to the renovation.

 

The Flipping Strategy in Murmansk

 

Investment property flipping in Murmansk is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Murmansk real estate investments are sometimes referred to by professionals as ‘distressed’ Murmansk real estate.

 

What is distressed Murmansk property:

 

  • Murmansk property in need of renovation
  • Murmansk real estate with a change of purpose and use
  • Oversold Murmansk property
  • Bank repossessions in Murmansk

Put simply, long term investors in Murmansk purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Murmansk investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Murmansk property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Murmansk use a minimum profit value of 22% when looking at potential Murmansk projects.

 

The reason for this is because there are lots that can go wrong in Murmansk property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Murmansk

 

Property Secured Investments is a Private Equity fund that invests in Murmansk and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Murmansk

For luxury property investors hoping to add a superb property in Murmansk to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Murmansk, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Murmansk should be entrusted to only the highest-quality agency.

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