100% prepayment
About 43% of Moscow residents and 35% of those wishing to purchase an apartment in the Moscow region prefer to pay the entire amount at once. This is a practical payment option, when using it, paperwork takes a minimum amount of time, and their number is significantly lower than other methods.
When choosing to pay in cash, the transaction process takes three stages:
- Clarification of all clauses of the contract;
- Transfer of funds;
- Registration of the agreement with the Federal Registration Service.
In recent years, the volume of such transactions has remained at the same level, despite the apparent convenience and simplicity. Even quick purchase processing times do not contribute to growth. This is hampered by the low income level of the majority of the Russian population.
Taking into account the economic crisis that has occurred, the solvency of citizens has worsened in recent years. Most people do not have large sums of money that they can freely dispose of. Most transactions occur through alternative options using funds from the sale of existing housing. Such situations arise in more than half of all concluded contracts.
If we take into account that economic development is not planned in the coming years, then there is no need to consider the option of increasing transactions for the purchase and sale of apartments in new buildings on prepayment.
Mortgage loans
Bank lending facilitates the purchase of housing in 35% of cases for Moscow, and 36% for the Moscow region. Getting a mortgage is quite problematic, but for most people this method remains the only option for purchasing their own home.
IMPORTANT!!! Before taking out a bank loan, it is important to objectively assess your solvency for the next 10-25 years. Analyze the stability of earnings received, the stability of the company or enterprise, the risks associated with the reduction or closure of the organization.
Unlike foreign countries, in Russia mortgages are subject to fairly high interest rates - 12-14% per annum. These figures are used most often, with rare exceptions where the rate may be slightly lower than 10%. The full loan amount over 10-15 years can more than double the cost of the home itself.
If you accurately calculate all the risks and consequences, get used to the idea that in the next 10-25 years you will have to pay 20-50 thousand rubles monthly, then this option for purchasing housing will undoubtedly be profitable.
One of the advantages of a mortgage loan is the ability to purchase an apartment with only 10% of the required amount available, and in some cases even less.
Programs for purchasing housing without a down payment are available, but on the condition that existing housing is pledged as collateral, and the loan repayment period may exceed 30 years. The overpayment in this case will be disproportionate to the cost of the apartment.
Many people agree to these conditions, because collecting the required amount of money can be very problematic for the majority of the Russian population.
Next, we will consider step-by-step instructions for paying for an apartment in a new building by obtaining a bank loan:
- A potential borrower selects a suitable bank and program, writes an application and receives approval.
- Contacts construction organizations to select future housing.
- If the seller agrees, wait for the preliminary agreement to be drawn up with the transfer of the deposit and the issuance of a receipt.
- Submit the papers to the banking organization in order to ensure their legal purity.
- If everything is in order, draw up a final purchase and sale agreement.
- Register it with the MFC or registration chamber.
- Contact Rosreestr for a certificate confirming the owner of the property.
- Both parties come to the bank to receive money.
- The buyer draws up a mortgage agreement and transfers funds to the seller.
Calculate all the risks: how to make money on a communal apartment in Moscow
By 2030, there will be no more communal apartments left in Russia. Deputy Prime Minister Marat Khusnullin announced this the other day. The authorities intend to resettle people from dilapidated houses, providing them with housing on social rent or as property in return. Evening Moscow asked real estate market specialists about how relevant the issue of such apartments in the capital is now and whether it is profitable to purchase a room in a communal apartment.
How communal apartments are born
Despite the active construction of housing throughout the country, communal apartments are still a common phenomenon, including in Moscow. There are many advertisements for the sale of rooms within the city - on the Avito and CIAN websites, for example, there are about 1000 of them (as of March 29).
But there is no problem in this as such, says President of the International Academy of Mortgage and Real Estate Irina Radchenko .
— A communal apartment is formed quite simply. For example, when spouses get divorced, each of them sells their share in the apartment absolutely freely on the market. It's not always an old house. They often sell rooms in new buildings. There are a lot of such advertisements, and not everyone has the means to buy an entire apartment,” the expert explained.
It is possible to prohibit the sale of shares in an apartment
At the same time, communal apartments as a class, she notes, can be eliminated now. It is enough to simply prohibit the sale of shares in the apartment. But, of course, there is no need to do this, the specialist is sure.
A similar opinion is shared by member of the Russian Guild of Realtors, real estate market expert Konstantin Barsukov. From his point of view, if we talk about the ban on buying and selling rooms, communal apartments will really disappear, but it is necessary to offer an alternative in the form of other housing.
But, judging by the words of the Deputy Prime Minister, there is no talk of eliminating communal apartments as a class. In an interview with Vladimir Pozner, Marat Khusnullin spoke about programs for resettlement from dilapidated housing and improving the quality of life of the population.
How to buy a room profitably
Is it possible to somehow profitably improve your living conditions or earn money by purchasing a room in a large apartment? Experts are confident that it is possible. However, each idea should be considered individually.
“There are cases when a person moved in, bought a second room from a neighbor at a cheap price, then a third room, and was left alone as the owner of a three-room apartment, saving 20 percent. Individual rooms are cheaper than the entire apartment, this is obvious,” says Irina Radchenko.
“It’s just better not to buy directly”
Barsukov believes that it is difficult to get benefits from buying a room if a person is not involved in buying and selling real estate at a professional level.
- It is very important to calculate everything thoroughly here. One of my clients, for example, was fundamentally looking for apartments in which either the neighbor expressed a desire to sell another room, or understood the situation that he could offer such housing in return without any additional costs, and that the other owner would definitely agree to such a deal. This is a very difficult job. But just buying any room outright and thinking that you will make money on it is wrong. You can make a mistake. And other owners may behave differently and even “squeeze” you out of the apartment, the realtor is sure.
Good profitability from renovation
One way to profitably acquire a room is to purchase a share in a Khrushchev-era apartment included in the renovation program. According to Irina Radchenko, in this case it is quite possible to count on your own apartment in a few years in a new house, and within the same area. However, such tidbits are immediately tracked by realtors.
Moreover, some of the real estate agents with purchased rooms can “sit” for several years, and after receiving the keys to a new home, resell it. Still, your own apartment in the same area is better than a communal one. Accordingly, the profitability from such transactions is also very good, Radchenko concluded.
Installment plan
In Moscow, 19% of apartments sold are purchased this way, and in the region – 24%. It is worth noting that the share participation agreement allows you to purchase real estate in installments. The contract specifies the amount of the down payment, the duration of the installment plan and its schedule. This type of payment is popular with families who can afford to pay 25-55% of the cost of housing.
ATTENTION!!! Installment plans are usually issued for a period of 3 months to 3 years. Available payment options include: quarterly, monthly and weekly.
Completely interest-free schemes are used quite rarely. Usually an agreement is drawn up at 7-12% per annum, which is already included in the total cost of housing. Overpayment with this method will not be significant.
Procedure for paying for an apartment in installments:
- Both parties preliminarily agree on the upcoming deal.
- A preliminary purchase and sale agreement is drawn up.
- The necessary papers are collected to complete the transaction.
- The seller and buyer sign the basic agreement.
- Register property rights with the help of Rosreestr or MFC.
- Within a week, the submitted documents are checked.
- The buyer receives a certificate from the Unified State Register of Real Estate, which indicates the encumbrance on the apartment. From this moment on, he has no right to sell it or give it away without the consent of the person who provided the collateral.
- After making all payments, the seller goes to Rosreestr to remove the apartment from the mortgage.
Keep track of the commission amount when paying
Pay attention to what commission they charge you when paying for utilities. Often it can be unreasonably high. Now the average commission on a check is 0.5-2%, but the Federal Antimonopoly Service identified violations when payment organizations inflated these figures to 7%.
Now you can pay for utilities in different ways:
- through the cash register;
- online (through applications of banks, mobile operators, government services, etc.);
- through ATMs and terminals.
As a rule, the smallest overpayment occurs when using government services, online banking applications and post offices. In terminals and bank branches, the chance of encountering high commissions is higher, so you need to be more careful.
Choose the method of paying for utilities that minimizes commission costs - and adhere to this scheme for repaying utility bills.
In 2021, a bill was submitted to the State Duma for consideration that would completely exempt some citizens from commissions when paying for utility services, namely pensioners and recipients of subsidies.
Expenses:
for free
Saving:
2-7% when paying for housing and communal services
Cashless transfer
The method allows you to pay for the purchase before signing the contract and after that:
- the required amount is transferred to the seller’s account and, if required, a statement of payment is provided;
- The purchase of the apartment is considered completed.
The advantages of this option include a low transfer fee, or its complete absence if the payment is made within the same bank. What is important is short terms. Money is sent within a few minutes to 2-3 days.
IMPORTANT!!! Some banks limit the amount of payments made, so you may have to transfer the required amount in several stages.
Option one is legal
You bought a new building under Federal Law 214, which we already wrote about in our blog
. The law determines the procedure for transferring an apartment to a shareholder. The developer is required to obtain permission to put the house into operation, show the apartment to the buyer, eliminate any deficiencies, and only then can he begin to draw up the deed.
As soon as your signature appears under the transfer and acceptance certificate, the developer washes his hands of it. His obligations have been fulfilled. Now only you are responsible for your square meters and you also pay for their maintenance.
This rule is. There are exceptions. For example, you are offered to sign an additional agreement, according to which you are obliged to pay for housing and communal services two (three) months before signing the acceptance certificate. This doesn’t happen often, but that’s why it’s an exception.
There is only one recommendation - carefully read everything you sign. If you find an additional agreement and a separate clause for payment of housing and communal services, you should be wary and assess the possible losses. Why be wary? Yes, because when purchasing an apartment under Federal Law 214, such transactions are illegal. So you can refuse to sign the additional agreement. And if you have signed, remember: the new apartment does not have meters for water and electricity - so the fee can be very high, and your costs for purchasing a home will increase.
Bank safe deposit box
The rights and obligations of the seller and buyer become equal when choosing this method:
- the buyer opens a safe deposit box and sends the money for safekeeping;
- the seller gets the opportunity to dispose of funds only after the buyer receives the right to own housing.
It is possible to transfer money within 6 months, even after the bank’s license has been revoked. The method is considered one of the most reliable and legally clean. The likelihood of deception on both sides is almost zero.
