Crimea: Investment Gone Bad?
The building and property in the leading photo was one I was looking at as an investment, in Crimea. Some things just do not work out. Does that make it a bad investment on the Crimean peninsula?
This building was originally started as a sanatorium (health clinic) for children. My first information told me that they ran out of money, and it has sat incomplete since.
For me, I would have invested in it just for the brick building on the left side, and some parking spaces. Parking is at a premium in the mountain cities of Crimea, and I looked at it more for myself and my neighbors. Either way, I think the building is cool, and I would have invested in it just to have the property above our apartment.
This was, without a doubt, a bad investment for the original owners. What I found is that the owners were building this sanatorium without a license, while Crimea was under control of Ukraine.
When Ukraine was having its struggles in 2014, the owners quickly sold the building to someone else for almost nothing.
They second owners probably thought they were getting a good buy during the government turmoil. Alas, they ended up with a bad investment too.
The building and property sit under a main power line. In Ukraine, this was not a problem. In Russia, it makes the land unable to be developed. Russia does not allow building underneath power lines.
Building under power lines, especially something like a sanatorium, is forbidden due to health concerns. Add to that this being a facility for children, and you end up with unsuitable property for building.
One of the things I have seen in Russia is that there are many laws that support health concerns which are debated in the United States.
New Crimea Owners
So who ends up being the owners of this unusable property? The Crimean (Russian) Ministry of Health. I do not know if the illegal buildings and property were seized or purchased, but either way it now belongs to the government.
Will the government be able to develop anything there? Only if they move the power lines. Of course, they are about the only ones with the resources and weight to get the lines moved. Is the story all negative, or is there a bright side?
Bright Side of Bad Investments
In the mean time, I look at the bright side. I will not have someone building above our apartment building, blocking our view of Ai-Petri Mountain, or looking into our windows.
The poured concrete on the property has made for a good neighborhood shashlik (BBQ) spot. And yes, neighbors can still park there at this time.