REAL ESTATE PROPERTY
Housing in installments - buying real estate for living with a subsequent payment to the developer, the owner of the apartment or a bank.
Installment for housing is divided into two types:
1. Interest free;
2. At a certain percentage.
Installments with interest rates, we will not consider, because They differ little from the usual mortgage or housing loan. We will become acquainted with installments in the sense in which it is contained in potential buyers and people in general.
Housing in installments from the builder or the owner implies the purchase of real estate for a fee, part of which is paid immediately, and the balance can be repaid:
· Monthly (once a month, in the established order);
· Quarterly (once every three months);
· Every six months (twice a year);
· Once a year by agreed payments.
The cost of housing at the same time is unchanged and does not depend on currency fluctuations, the situation in the real estate market, etc. Almost always installment means postponing the payment for several years, it is similar to an interest-free loan, which is the most profitable and easy option for the borrower, excluding overpayment. In addition, to obtain installments does not require a long collection of securities, confirming the solvency, age, etc. From the point of view of lending, installment resembles an interest-free mortgage. Yes, and in case of non-payment, usually real estate is returned to the original owner, the developer.
Benefits of buying a house in installments from the builder:
· Interest-free loan, excluding overpayments for housing - it is necessary to pay only the cost of housing;
· Absence of the need to collect securities, like a mortgage with a large down payment;
· There are no requirements for credit history;
There is no compulsory life and health insurance, or the real estate itself;
The opportunity to live in the purchased object after the initial payment.
· A short installment period, usually not exceeding five years. As a result, the borrower must pay or postpone for payment a huge amount every month, a high income is required;
· A high down payment, usually within 30-70% of the value of the property;
· Like a mortgage loan, real estate can be withdrawn in favor of the builder;
· Unlike interest-bearing loans, there is no penalty for early repayment in regular installments. Moreover, full early repayment is strongly welcomed by the seller.
Housing in installments from the owner is similar to the purchase from the builder, the main difference is that the apartment is second-hand. The secondary real estate market, in contrast to cars and equipment, in most cases is more expensive. The reason is this: the house is already burnt, all amenities are connected, etc.
Of course, the main thing is to compare equal types of housing. If we compare elite new buildings and budget secondarys, of course, the difference in quality will be in favor of the former.
If the new building is commissioned, it is necessary to check the connection of all communications, documents to them. Very often, sewerage, heating, water supply and even electricity do not pass through documents. Of course, this is if you do not talk about such things as telephone, digital television and unlimited cable Internet, which also became necessary for tenants' amenities.
If the new building is only in the process of construction - there is a chance that it will never be commissioned, will not be completed or will be problematic. Carefully read the reputation of the developer, etc.
There is another installment - the money for the apartment is given out by the bank to the seller or the developer, and the debtor pays the bank the cost of the purchase. At the same time, the interest on this loan is paid by the previous owner, and the real estate is under the pledge of the bank (or the seller, in the event that it provided other security for the loan). With this installment, the initial installment (30-70% of the cost) is taken by the developer or seller, and the remaining amount is a loan. The interest rate on such a loan is usually minimal, as it is for a decent period, and with a decent security.
There are also alternative types of installments, which are hybrid between interest-free installments and mortgages. Installment at the same time is issued for a long period (usually up to ten years), and the surcharge can be 1-8% per annum on the balance. This is much better for a borrower than a regular mortgage, and is much more profitable for a seller of real estate than a long-term interest-free installment plan.
It is worth noting that under "profitable" installments fraud can be hidden when an initial payment is appropriated by an unscrupulous owner, and all rights to real estate remain with him, and he evicts the buyer without any reason.