Crisis Financial Instruments for Primary Property Buyers. The main theses
On April 28, a zoom conference "Anti-crisis financial instruments for primary real estate buyers" was held. We share the main points that were voiced by experts.
Anna Anisimova, Head of Investment and Analytics, Intergal-Bud
1. Buyers of apartments in the new building have 3 options for buying a home - 100% payment, installment and mortgage affiliate program.
- At 100% payment, as a rule, the developer offers a discount system to encourage the client.
- Affiliate programs with banks are the longest - up to 20 years, there is a fixed interest rate and certain conditions. We work with Ukrgasbank and Globus Bank. They offer our clients a discounted rate of 5.9%.
- The installment programs are of different types - either for the period prior to the commissioning of the house, or for up to 3-5 years with the possibility to live in the apartment and continue to pay at a convenient rate.
2. In general, we have 5 types of deferrals ranging from 3 months to 5 years. We have a peg to the dollar, the amount is fixed in the contract. Given the exchange rate fluctuations, we offer our clients anti-crisis fixed repayment terms. For example, during the quarantine period we fixed the rate at 25.5 UAH.
3. 3-month deferral is our customers' most favorite product. Under these conditions, we offer the same conditions as with 100% payment. These are the same additional discounts, the ability to fix the course and more.
4. Deferral for up to 6 months offers the buyer a base cost of no extra cost per square meter. Due to quarantine, our buyers extend the period from 6 months to 1 year. In this case, the rise in price per square meter is about $ 30-40, which is only 3-5% of the base. This figure is insignificant for a year.
5. Deferral for up to 3 years - base cost markup is $ 80-100, which is somewhere around 8-10%. Considering the term - 3 years or 36 months, a rise in price to 10% is quite advantageous, because the cost of a finished apartment will increase by more than 10%. On average, this is 20-30% of the cost of the square meter at the stage of the pit.
6. The longest installment payment is up to 5 years with the minimization of monthly payments. The price increase in this case is $ 100-150 per sq.m or 12-15% of the total cost of the apartment.
7. The company Intergal-Bud is a financially independent builder, which, due to its internal resources, can respond to buyer's requests and form the required financial instruments for buying an apartment. We are one of the few players in the real estate market who offers deferrals of up to 5 years, we can afford it
Kateryna Lichana, Head of Partnership Department, GLOBUS
1. The Globus Bank actively lends to buyers of apartments in new buildings and has a number of special partnership programs. We issue a loan of 2.5 million to 20 years with an interest rate of 5.9% in UAH with a minimum first payment of 20%. During the quarantine period, we did not stop working with developers. The only thing - the requirements for the first payment have increased to 40%.
2. There is a program with developers, in particular with "Intergal-Bud", under which the transition from billing to bank lending is possible. That is, a person can take out a loan to cover installments in the apartment. In order to do this, she already needs to confirm 40% of the housing cost paid. In this case, the client receives the required amount at 11.9% per annum for 1 year.
Volodymyr Chornenky, Director of Retail Business Development at PRAVEX BANK
1) Pravex Bank has two programs that you can use to buy a home. The first has to do with the mortgage. These are loans for the purchase of finished housing, in particular for new, commissioned complexes. Credit up to 4 million UAH for up to 20 years. The pledge will be the purchased apartment. At the end of March, we offered a mortgage at 10% per annum. The second - with a first payment of 30%, the rate of 14% 5 years, from 6 years will also be a floating rate.
2) Interest rate of 10% pa can become a real driver of the market. This is a real opportunity to increase the number of buyers and thus stimulate the construction industry. For example, with a loan amount of UAH 1 million, a monthly payment of UAH 9 700 (body of the loan + interest), and the required official income of the borrower (for a family of 3 persons) is UAH 21 273.