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Buying a flat is an important thing that affects people’s lives for a long time. Therefore, most people act emotionally in the purchasing process. They mostly make their decisions according to the current situation and don’t think long term. However, although flats are living spaces, they are also an important investment instrument. Therefore, when buying a flat, one should not only think emotionally but also should be profit-oriented. There are different categories of flats to be preferred in Latvia. Each of these has its advantages and features. By examining the options below, you can choose the most suitable one for your budget and needs.
Which types of flats are more suitable for you for property investment in Latvia? Prices, features, and all the details of these flats are in our article.
Small Flats (For Couples with No Children and Students)
You may have different expectations regarding the flat you will live in. However, do not forget that these expectations are directly related to the number of people to live with. If you are a newly married couple or a student, it can be said that a small flat will meet your needs. These flats meet your expectations in general. Their costs are also extremely low. Property taxes in Latvia are also very low. If you can afford a down payment, you can get such a flat with a low monthly payment loan.
These flats are small and may not meet your needs after some time. For example, let’s assume you have children. In such a case, you will need a larger space. Or you have completed your education. Now, your flat will no longer satisfy you. You don’t have to worry about these situations. The high number of students in Latvia and their preference for such apartments means you will have no trouble finding tenants. In other words, the flat you bought can turn into an additional income source.
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Newly Built Economy Class Flats
Newly built flat projects are highly planned. Accordingly, it would not be wrong to say that these flats meet the expectations effectively. The prices of these flats, which are generally 50-75 m2 in size, vary between € 100.000 and € 120.000. This would be the right property investment.
An economy class flat bought will meet your needs for a long time. No additional costs incur depending on the new structure of the building. Besides, the value of this building will increase over time. Considering all of these, you will both meet your housing needs and utilize your money.
Before choosing new projects, it is very important to do detailed research. Make sure you get information about how the surrounding will be organized, what buildings will be built in other areas, and similar details. Thus, you will seriously reduce the possibility of disappointment in later periods.
Luxury houses, also known as privileged houses, have features that will exceed your expectations and needs. The price of such a house is on average around €3,000 / m2. So it can be said that the price is above the general average. On the other hand, the luxury of the building, its insulation, and other features are factors that will save you money over time. For example, in this type of flat, the heating cost for the same area will be lower than for low-class flats. Since it is located in the city center, you do not have any extra transportation costs. Thanks to such factors, your expenses generally decrease. Besides, the demand for such flats is always high. The price of your flat increase, it turns into a serious investment instrument over time.
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Soviet Heritage Flats
A significant part of the buildings built in the Soviet period is still standing. It can be said that most of these are in the city center or at a close location. This situation provides a serious advantage in terms of transportation. They are in the flat category that can be preferred by those who love historical buildings.
On the other hand, these buildings may need some renovation as they are not new. At this point, you should do your research well. If the flat you will buy needs renovation but if you buy it well below its value, you will make a profitable investment by covering the renovation cost from your pocket. So if you can find a nice flat at a good price, Soviet heritage flats can come back to you as a very profitable investment.
Igors Krumins continues his activities as a commercial and international lawyer within the body of “Jurmala Invest”. He has more than 10 years of experience, especially in the investment sector, and has provided consultancy services to numerous companies with his legal expertise. He successfully completed his undergraduate studies at Baltic International Academy and graduate studies at Latvijas Universitate. Apart from his native Latvian language, he can also speak Russian and English fluently.