Buy-to-let in Moscow, Russia

Why Moscow?
Now the prices for capital apartments are falling. Rent is getting cheaper. People began to think about their housing. Mortgage is the life of your apartment. You pay already for yours, and not for someone else's apartment.

VTB
Consider the situation with a specific example. We took VTB Bank. We calculate how much you will have to pay if you take a mortgage in it for a two-room apartment.
* average prices

Purchase price
On average, a two-room apartment in Moscow on various real estate sites costs about 15 million rubles. We will count from this price.

Deposit
In order to take a mortgage, VTB offers to pay a deposit of 1.5 million rubles. This is 10 percent of the total cost of the apartment.

Mortgage
After paying the deposit, we will only have to pay 13.5 million rubles to the bank. This is 90 percent of the total cost of the apartment.

Monthly mortgage payment
Each month we will give the bank 119.5 thousand rubles each. Bank mortgage rate - 10.1 percent for 30 years. It turns out that every year we will overpay 10.1 percent.

Rental income
According to the CIAN website, the cost of renting an apartment in Moscow varies from 60 thousand rubles to 300 thousand rubles. It depends on the area, repair, infrastructure and other qualities. We took for the average option 180 thousand rubles.

Rent as a % of mortgage
Having carried out calculations, we found that renting the received housing you get an income equal to 151 percent of the mortgage. The net profit is 51 percent.

Risks
Everything above is estimated approximately. Also, anything can change at any time. There are such risks as an unsuccessful choice of a bank or currency, loss of a deposit, disagreement of other owners, lack of insurance and more.