Buying Your Home
Posted on August 7, 2012 in News
It is known that in the initial stages building developers have their own funds in an amount sufficient to build the house. Get a loan for the construction of the bank is extremely difficult. Therefore, developers are forced to sell has not yet constructed apartments potential future tenants – individuals. Citizens become co-investors construction and are in connection with this, all risks on a par with the developer. The duration of the construction process allows us to “share participant” to make payments in accordance with the schedule, “stretching” of the entire construction period, and sometimes for a certain period after its completion, that is, pay for housing in installments.
Usually, this scheme is available to the Installment the end of the building amounting to 30-50% of the cost of housing. It is obvious that not all citizens have sufficient funds to pay for purchased housing during the construction period. Wishing all interested majority of the population to acquire housing through a scheme of shared construction, construction companies tend to provide the public with more favorable installment. To this end, under contracts with the holders of property developers big capital are utilized financial resources of commercial banks, funds and investment companies, allowing more elongated periods during which the installment plan is available. Raising capital from large sources not only increases the reliability of the whole circuit, but also gives it new meaning and content.
The advantages of the scheme of shared construction is its simplicity and lack of substantial appreciation of housing, which holds with long-term bank lending. Therefore, in regions where mortgage lending is still not developed, shared construction often appears as a single scheme to purchase housing. Another advantage – lower cost of housing construction compared to the cost of finished apartments in the secondary market. The greater the difference in the price of finished and housing under construction, the more supporters of the scheme. Disadvantages equity schemes include a high degree of risk to “share holders”. It is they who bear the greatest losses in the event of failure, poor quality or unfinished construction. During operation of the scheme share Participation in the courts reviewed hundreds of cases defrauded real estate investors. Some improvements had been made a year ago, when the Supreme Court agreed to consider the equity holders of both consumers and apply at disputes the law “On Protection of Consumer Rights. Because of this they are not personally liable for the failure of nested means construction time caused by the builder. Another drawback of this scheme is its social inefficiency: because of its short duration, it does not allow the mass to solve the housing problem of the population. And, in addition, equity requires registration of property only after full payment for provided housing, at the end of the construction and installment. Before making any final conclusions, count how many months (or maybe years) you’ll wait for the construction and decoration of an apartment in property? And how much income you would be able to receive if he opened a deposit account in a bank in the amount paid by a construction company funds? And how much it will cost repair and installation of the phone? (Most of the apartments builders are available without finishing and phones). Considering all future costs and weigh the risks, compare the cost of new buildings with a similar flat in the secondary market.
