In his post: Send: 23.05.2008 9:58:54 he says "What I was thinking of doing was open some kind of Business in the Ukraine with the help of my brothers (spread the risk). Then if everything worked out, then buy a couple of apartments, get a couple of local girls to look after my investment for me and father some kids."
The way I read this first he wants to start a business with the help of his brothers. Then if this works out second he will buy a couple apartments, then get a couple local girls to take care of all of this and father some kids. I assume him and his brothers want to father the kids with the two local girls. But it actually sounds like two local girls are going to do the fathering.
So it actually sounds like he wants to diversify. You could ask he may be open to spreading the risk a little farther and having you oversee the whole operation :-). But it could be interesting when the two girls start fathering.
Depends on the type of investment but Ukraine is corrupt in legal and Government circles, its not regulated like the US etc...officials make up there own rules, the greasing of palms is common to get things done or otherwise its incredibly slow and bureaucratic, President Yuschenko has promised to clean up Ukraine of the corruption and get it ready to meet EU standards for admittance to the European Union but they are unlikely to consider an application from Ukraine until 2015 at the earliest, Ukr has a long way to go to clean up its act!
You need to do your research on Ukraine law. Property ownership may be alright but you need to investigate laws regardig foreigners owning Ukrainian real estate..here is a great business idea, invest in a few good apartments in the bigger cities, set up a short term accomodation service on the internet for western men wanting to come to Ukraine and meet the girls err potential fiances and they will need a cheap affordable place to stay as hotels are ridiculously expensive there and low standard...what they ask in Kiev for reasonable hotel accomodation per night, I can get a premier suite ( a luxury upgraded room ) at the Sheraton here in my home town in Oz...theres money to be made if you charge $50 usd a night, the apartments will alwayds be full as its cheap by there standards for accomodation, westerners pay a fortune for it there..theres a price for Ukrainians and a price for Western foreigners and Westerners pay through there ass for it!
You buy some apartments, do em up a bit to make them clean and too western standard and give them there own water heater so you can supply 24 hour hot water..its suprising how many Western guys who have gone to Ukraine have had to take cold showers as there is no 24/7 hot water in a lot of places, advertising an apartment with its own water heater is a big plus, westen guy can shower whenever he wants without freezing his ass off, also put in water filters ( reverse osmosis kind is the best ) to filter out the water bugs so us guys don't get "Kiev or whatever belly" and chronic diarrhea from drinking there sub-standard water..at $50 usd a night you will have an endless que of Western guys wanting to rent them!
Yet, from one penpal I current have, she tells me a lot of rich guys in their 60's are trying to do just that... give her money as a sponsor, she becomes their mistress/prostitute, and the moment she is pregnant becomes surrogate mother to his child.
She says it's pretty disgusting and I agree. She says it's almost every letter she receives is like that, and I'd say there's got to be truth, because some other girls are saying the exact same thing is happening to them too. So I guess it can be done, but finding a girl willing to do it is the hardest part of the transaction. ;p
Aussie> Agreed, even Ukrainians don't trust Ukrainians. My doctor friend told me his seniors all expected to be paid cash for surgery. I don't trust Ukraine contractors and lost money when I tried once to test it for myself.
Regarding the apartments I agree again. Kiev is very expensive now and Ukrainians feel the pinch very hard there too. If I were to buy Ukraine property, I'd have a "trusted" Ukranian do the upfront negotiations on an apartment, pay him/her a finder's fee and then fix it up. If you expect ANYONE to do it for free, your gonna find out the hardway that this person backdoored you by making negotiations with the seller to increase the price 5-25%. I'd have my girlfriend do it, because if she backdoored me, her family would know. And that's pretty shameful... and as bad as it gets for a girl when family get involved and know her bad deeds.
Aussieman,
You cannot learn everything by reading about it on the internet or in a newspaper, one can learn a hell of a lot more by talking to people on the ground there!
I actually enquired regarding registering my own business in Ukraine, when I was setting up my own businesses early last year, and the advice came from best friend's (agency owner) accountant and basically the idea was a non starter, I would have been 'stung' in taxes and even if I tried to hide the revenue then the government would wind the company up for being non viable.
I still have plans to open an office and employ staff there but the business is registered offshore and it would be very difficult for the Ukrainian government to prove any revenue, I don't even have to show the company books to the authorities of the country in which the business is registered so I'm damned if I'm going to show the books to anybody else!
Of course, as the business may develop, to invest in property might be the next step but to rent property out isn't as straightforward as it may seem. One will have a website advertising those properties with prices and if the Ukrainian authorities go looking then they may come looking for taxes and perhaps fines etc. for not declaring income generated in Ukraine.
You talk of putting in water filters etc. I have doubts that any filter would neutralise all of the craps in Ukrainian water but to install filters, to encourage renting out, is totally unneccessary particularly expenditure wise. One can simply have a welcome pack in the apartment that may include a couple of litres of bottled water, cost probably less than $1, and thereafter nobody in their right mind is going to complain about buying the odd bottle of water now and then.
The one big selling point of renting out an apartment would be access to the internet, the cost of it might be one or two dollars a day but when renting out for $50+ a night internet costs sink in to insignificance.
In buying and renting apartments the street value of your apartment is probably 2 to 3 hundred dollars a month. The work of maintaining and renting is what brings it up to 50 to 100 dollars a day. In talking to the man I rented one apartment in Dnepropetrovsk for $70 per day. He in turn rented this apartment from its owner for $250 dollars a month. So to make money on your investment you will need to squeeze what the caretaker is making (pay someone at a lower rate than the profit he is charging) or do the renting yourself. Either way you will need to spend some time learning investment and operating safety to keep your money together.
If you invest in an apartment and figure it will automatically roll into $50 a day you are leaving out a lot of the expenses.
Oz,
Between us, my wife and I, already own an apartment in Ukraine, there are basic costs of some $50 a month (which includes heating) and then there is electricity on top. Let us say costs are $100 a month, then pay someone to clean it each time someone may check-in/check-out, new bedding every so often, we're still talking of costs of less that $200 a month, add internet then perhaps $250 a month. Let's say we rented it at $60 a night and it was occupied on a 50% basis, which would easily be achievable in Zaporozhye where apartments for rent are few, then that would be a revenue of $900 a month, less $250 a month, x 12 months a year, an annual revenue of $7,800.00 a year.
Yes but you will still need to be there to deal with renting it and problems that arise or hire a relater to do this. And you have an advantage because your wife is familiar with the city and knows who to find to do this.
And on the flip side you could rent an apartment in the 2 to 3 hundred dollar range and rerent it by the day. That is why I say the street value of the apartment is 2 to 3 hundred a month and the service of renting it by the day is worth $600.
Apartments> I think this is very viable investment in Ukraine in most any city, but you have to be careful and patient to find a good fix-it-up type place to purchase.
Offshore> Personally I'm going to be starting a software development firm and just hire full-time employees. Problem is trusting the manager to run the place and see that work actually gets done. Ukraine taxes are going to be hard to prove as all payment reconciliation is done internationally. To all intents and purposes how would Government office prove income? They can do it with apartments relatively more easily since its a tangible and known quantity, but an intangible service is much harder to prove when no bookeeping is done except wage payouts. At least this is my suspicion. I have yet to put it into practice. Anyone seen anyone do this before?
Apal..business in ukraine is done the old fashion way....you pay the police and/or government people so that you can keep your business open.....guess you can call that some type of tax. Maybe you should find out first what is normal because it doesn't seem you know yet.
Apal...just showing you what is normal in ukraine is not normal in other places. I thought I answered your questions... most were thinking from the prospective of being in US. I only wrote from what I had seen at my friends restaurant in odessa.
Quote: "If you expect ANYONE to do it for free, your gonna find out the hardway that this person backdoored you by making negotiations with the seller to increase the price 5-25%. I'd have my girlfriend do it, because if she backdoored me, her family would know. And that's pretty shameful... and as bad as it gets for a girl when family get involved and know her bad deeds."
OMG, you're breaking me up. You just simply have no clue how it all works. Wake up dude, her family will backing her transactional deed all the way in most cases if the foreigner is being shafted. They will not be ashamed of her, they will be proud of her and giggle about the stupid Amerikanski for ages after…….And she’ll probably share it all with her local boyfriend or husband over the next weeks.
Dun> If your speaking from experience please share... otherwise you seem like a vindictive child with your posts... If you have a girlfriend that's going to screw you over, good deal. I'd prefer just hiring a local (reputable) Ukraine business attorney, but scams and corruption are all over the place and the girl I had in mind isn't the girl you say would make her parents proud. Geezus... but you are rather a stranger person Dun.
Beem> I know a lot of things that go on in Ukraine are not normal at all in other countries. I think it was Rand Corporation that released a study on Global Corruption Index levels and guess what... Ukraine is deep red. ;)
It's just as I said, in Colombia if someone did even half as much as some of these Ukrainians they'd be dead in a week. In Ukraine, they just laugh and smile, and change their business name for their next client (sucker).
And it's why you see corruption even in young 18 yr old agency girls. I saw it first-hand and no I wouldnt trust such a girlfriend to make a business deal. ;)
apal1: You contradict yourself again and again. A few posts back you were on about getting your girlfriend to do the business, when that theory exploded, now you are on about getting a reputable lawyer on the job. Jolly good luck finding one of those in Ukraine. They exist but they are rare animals.
Vindictive: Why would I be? Eastern Europe has been very good to me over time.
Quote: "the girl I had in mind isn't the girl you say would make her parents proud."
Wrong answer dude. The girl who will pull this on you in Ukraine or anywhere else in the east will be backed to the hilt in so doing, by family friends and others. Get a clue, it's how it is. And BTW, the girls who'll pull this on are in greater number than the foreign punters would care to imagine. Not all but far too many.
Quote: "you are rather a stranger person Dun."
I have no doubt it is strange to meet someone who lives on reality street.
Dun> I'd prefer the 'trusted' girlfriend/wife over an attorney any day of the week. But I'd use the best available according to the situation. And unlike you I don't believe in any absolutes. Go ahead and keep cutting down Ukraine. Your anal sex comment for loan repayments in other topic speaks volumes about your mental health.
apal1: Actually, Ukraine is a super place to spend time and a wonderful place to search for a life partner, but if one is to get the best out of it, one needs to have some understanding of what is going on around them. BTW, the example comes from scripts of letters received by a guy I know quite well. I had tried to warn him and it took something such as that to make him wake up.
I wonder when I read this if anybody writes from experience, or just repeats the rumours they heard. It's like Chinese Whispers, where the message gets passed on and finally becomes unrecognisable.
I've been here four years. A little over three years ago I registered as a businessman and registered as a taxpayer for unified tax and have had few problems. The tax is unbelievably cheap. The nightmare is not in the finances, but in the bureaucracy. The time you spend standing in lines at government offices. And I don't employ anybody. If you employ people, the tax is a little higher, but there are another couple of government departments you have to visit.
The accountants here will tell you anything, and probably the 'tax' you pay is going into their pocket. The unified tax is a maximum of 200 Gryvna per month. That's just over $40 with the eroded US Dollar.
Company registration is a different matter, and the tax is about 25% of taxable income. Wages are NOT a cost of earning income!! Ukraine is one of the few countries where you can make a profit before tax, but a loss after tax. Think long and hard before registering a company.