The increased availability of mortgage loans affected country market. According to some estimates, to date, in the suburbs with borrowed funds is about two-thirds of real estate transactions. The portal Cottage.ru understand the financial terms on which it is possible to acquire a home loan, and difficulties, trapping the borrower in this way.
Terms of issue
To bid for the mortgage Bank received the encouragement, the house should be located not too far from the city, have nearby industrial plants, trails of heavy traffic and other noisy and environmentally harmful objects. To be considered officially registered only objects standing on the cadastral account. According to managing Director of brokerage Department of “MIEL-offices of real estate” Alexander Moskatovaland should be located on the lands of settlements with the resolved kind of use “individual housing construction”, is welcomed as the availability of communications, preferably Central. In addition, VTB Bank has a restriction with regards to the material of the walls, said the portal Cottage.ru in a press-service of the company.
“With the security of buying a house with land, the object must be suitable for year round living, you must have road access, electricity, Central or a local sewage, heating systems, speaks about the requirements of the Bank “DeltaCredit” head of the Department for digital services and marketing Alex Martyshev. The house should not have unregistered extensions or add-ins, which has changed its external borders. Another important requirement is that the facility should not be located on lands of specially protected natural territories. Before providing a mortgage on a house, the Bank will conduct evaluation activities to confirm compliance with the essential requirements and determine the cost of the upcoming purchase. As related services the Bank “DeltaCredit” arrange for the insurance of the property of the client from the risk of loss of property, collapse or construction defects. The average term of a mortgage loan on a vacation home is 16.4 years.”
As for the borrower, for the approval of loan in the Bank “DeltaCredit” he must be at least 20 years old at the time of application for the loan, the buyer can not be over 64 years of age by the time of full repayment of the loan. Bank loans of employees and founders, and the founders of the companies and individual entrepreneurs. It is very important for the borrower to have good credit history: currently, the discrepancy of credit history requirements of Bank the most popular cause of failure.
However, state support programs, such as maternity capital certificates, apply to the countryside market. The parent capital the borrower has the right to make payment of the initial payment. In addition to the certificate, the citizen has to submit to the Bank a certificate of the amount of money in the account.
Programs of mortgage lending of country real estate are not all the banks in view of its low liquidity. Such objects, in contrast to apartments in high-rise buildings, harder typology, which significantly complicates the calculation of financial risks. In this case, the appraisers actually have to deal with two assets. Except for the house is also the site on which it is located. “From a legal point of view we are talking about two objects of real estate with their market characteristics, namely, on the land and the house, says the managing Director of “Metrium Premium” and a member of the affiliate network of CBRE Ilya Mogunov. A good house can be in a bad area and Vice versa, and in both cases estimate the total cost of the asset difficult. Between these extremes there are hundreds, if not thousands of different combinations. That is why, from the point of view of the Bank, to country is a more risky asset than, say, an apartment in a large LCD mass segment”. Therefore, in addition to the home buyer as collateral required to make even the plot on which the facility is located. If the asset will take, to implement the home ownership on land owned credit institution, would be impossible.
More fees, higher rates
Due to the difficulties with calculations of the risks of the initial payment as a credit bid, in most cases, overestimated in comparison with urban housing model. “If you’re buying a city apartment the size of the down payment could be 15% of the total cost, when buying a suburban property barrier typically increases to 30%, comments General Director of Agency “the White Winds” Alexander Libov. Increasing the size of the down payment, the Bank tries to secure itself against financial risks. If the borrower is unable to repay the loan, the Bank making the discount in those same 30% who paid the buyer gets the opportunity of this property to sell quickly. If the initial payment is only 15%, then to sell the property with the same discount it may not be possible”. However, for each object because of its specificity can be extended in a unique environment. Thus, “Sberbank” for some types of country property gives you the opportunity to take a loan with 15% down payment, says Alexander Moscato. Other banks, as before, offer mortgage programs with a substantial down payment, 20 to 40%. The minimum initial Deposit in the Bank “DeltaCredit” is 40%, said Alexei Tartyshov.
The average rate on a country mortgage by about 1% above the average rates on city property and is, according to “MIEL-real estate office Network”, of 10.26% (whereas in the city about 9.5%). The rate for suburban real estate in the Bank “DeltaCredit” starts from 10.25%, the company said. However, certain categories of citizens, some banks give certain preferences. In Bank “VTB” the credit for the purchase of real estate can be issued at the rate of 9.5% in the framework of the program “business People”, which is distributed to workers in education, health, law enforcement and tax authorities.
Towns in the priority
“If we talk in General about the suburban real estate market, than a “model” object is purchased by the client, the better, says Ilya Mogunov. In this case, the lender is relatively easy to estimate its value, liquidity and prospects of resale. In large organized cottage settlements probably were the borrowers, then the chance of a mortgage approval increases”. In KP “Golden Pine” is actively working with the banks, confirms commercial Director Anton Alimov. According to him, customers are willing to use the mortgage loans. At the moment of the 150 sold in 3 years houses nearly 60 households is the mortgage transaction. Thus, therefore, the mortgage is one of the most important sources of the execution of the sales plan.
“A portrait of our mortgage the buyer can be divided into 2 main types, says Anton Alimov. The first type is the buyer the contract a little less than average (7-8 million) with the first payment of 20-30% and a term to repay the loan after the implementation of another property in the next 2-3 years. The second type of our mortgage the buyer business owners who purchase houses in “Golden Pines” at the cost of 10-12 million rubles, which is more profitable to take a mortgage than to “take out” money from your business.”
The amount of loans and the volume of issuance of
According to “MIEL-offices of real estate” the average size mortgage loan in the secondary country market of Moscow region in 2018 is 5.4 million. In the whole country for the purchase of a country house, the citizens take from 4 million to 6 million rubles., said Ilya Mogunov. However, the banks give some other figures. The average amount of countryside mortgage loan in the Bank “DeltaCredit” is 2.7 million rubles, the company said.
As have informed in a press-service VTB, the share of suburban real estate in the total volume of issued mortgage loans is insignificant and makes up about 1.5%. The Bank “DeltaCredit” the proportion of holiday homes in 2018 is 1.8%, in 2017 1.7 percent in 2016 and 2.3%. According to Ilya Melgunova, in the Moscow region the share of rural borrowers does not exceed 2-2,5% of the total volume of mortgage lending. This is due, primarily, with considerable cost country houses in the Moscow region. Across the country, this share is likely higher, especially in the regions with developed individual residential construction (Krasnodar Krai, Rostov oblast, Stavropol Krai, etc.), where the difference in household cost comparable to the price of the apartment is the same square. However, in organized cottage towns say the growth of popularity of the mortgage. Over the last 1-2 years in KP “Golden Pine” recorded a growth in the number of mortgage transactions by 15-20%.
Many pitfalls can make the country a mortgage even more overhead than the city. The experts strongly recommend the resort to lending only in the case of organized cottage settlements. Having studied the history of the issue, it is difficult to disagree.