Investing in Mongolian Real Estate has been one of the best investment vehicules available to foreigner. With 0% capital gains tax, 0% income tax, no restrictions on foreign ownership, 20% rental yields, 25% capital growth, freehold properties and affordable prices have made Mongolia one of the most interesting emerging markets in the region. Off plan developments in order to have a lower entry price and the possibility to flip your property are a big favourite but buying a small exisitng property with a view of Buying to Let is often a more affordable solution which allows for a faster turn-around and less of a commitement. While Mongolia is often associated as the last frontier, as the fartherst place on earth it is increasingly coming up in the international spotlight for its investment spotlight.

Buying an existing property, renovating it and then either renting it or selling it on is one of the most attractive investment option but requires active presence in Mongolia or at least regular visits in the development stages. Returns on those sorts of investment can vary between 20 and 40% return over a one year period. 

Off Plan Real Estate Investment is in most cases considered to have the best return on investment but also has more inherent risk then buying a built property. The higher rates of risk are that you cannot see the finished product and as such have to trust the developer that he will deliver as promised. It is often a good idea to check the developers previous track record. Furthermore you will have to wait until construction is completed before seeing any return but if you can afford to do that your returns often far outweigh the potential risks. Mongolia is currently seeing a number of off plan developments coming up in Ulaanbaatar. Please contact Mongolian Properties for further information as well as legal advice about any of the developments currently under way in Mongolia

The Regency Residence is a luxury development being currently built in Ulaanbaatar. It offers great investment opportunities at all levels, there are opportunities to purchase large commercial sections for corporate investors while the private investors can take small to large apartments (64sqms to 250sqms) which are predicted to bring in an average of 20% rental yields and 15% capital growth. One of the big advantages of this off plan development is the attractive payment plan over the period of construcion (completion in march 2008). The Regency Residence is unique in its concept as it is the first development in Mongolia which incorporates such features as a warm lobby area where the residents are encouraged to meet and mingle, a luxury restaurant, resident oriented retail areas, a full spa centre, office floors, a protected courtyard and garden as well as the most breathtaking views over the mountains and the city. For further information on the Regency Residence please feel free to visit its website at www.mongolia-realestate.com 

The Mongolian Economy is booming at the moment, the primary factor for this growth is of course the mining sector but this has affected all of the services and retail industries in Mongolia. Ulaanbaatar is the centre of the Mongolian economy and as such most of the retail and services industry will be located there. Commercial property around the city is in very high demand, shops and retail units in the key locations are hard to come by while office space in short supply at the moment is seeing some very large projects coming to completion in the next year. Commercial property is more tricky to invest into as the legal side is more complicated but can afford excellent returns on investment. Visit Mongolian Properties Commercial section for more information. Some retail and commercial space is also available in off plan developments such as the Regency Residence.

REIT's (Real Estate Investment Trusts) are fairly new to Mongolia, Mongolian Properties launched a REIT in 2005 with a nine months fixed term which returned over 37% in return on investment. Mongolian Properties is launching a new REIT in the near future on 25million USD listed in Dublin and investing in Mongolia. A few other companies are expected to launch REIT's in the near future. Because they are a reasonably sophisticated and new investment mechanism the Mongolian Government has not yet decided how to rule them, as such at this present time they have great potential as the market is very much unregulated in terms of fiscal restrictions and any law woul take a long time before implemented. For further information on REITs Mongolian Properties is the leading agency in Mongolia which is working on them while the Foreign Investment and Foreign Trade Agency will also have details concerning the investment vehicule.