Most people who need their own housing are not able to immediately pay the entire amount of the cost of the chosen apartment.
Therefore, many construction companies provide installment plans. In simple words, an installment apartment is like a bank loan without high interest, which can also be used when buying a property. Let's try to figure out what are the advantages and disadvantages of this method of payment and how to buy an apartment in installments?
Buying an apartment by installments: features
An installment plan is a type of real estate acquisition, when the buyer pays the cost of the object in part, and pays the remaining amount in installments for the given period. Full transfer of ownership is carried out after making the last payment. Before as buy an apartment in installments, it should be borne in mind that this method of purchase is available only in the new real estate market. Typically, construction companies offer short-term installments - from several months to 5 years, and the down payment is more than 30%. To attract ordinary buyers and investors, many developers arrange various promotional campaigns, for example:
- Fixing the price per square meter for a specific period.
- Discounts when making a large down payment, for example, if you pay more than 70%.
- Possibility to move into an apartment before paying the full cost, etc.
Often, actions are combined, some peculiarities are introduced related to the complex under construction.
The difference between an installment plan and a bank loan
Studying the question of how to properly buy an apartment in installments, many are also considering the option of lending from a bank. Financial institutions give large loans, but is it profitable, you need to figure it out in more detail:
- Who is funded. The installment plan is provided by the developer, the loan is provided by the bank. The latter option always assumes a certain interest rate.
- The amount of the down payment. In Ukraine, various lending programs are offered, in some banks large amounts are approved if there is a contribution of 25% or more. Also, financial institutions often impose additional fees for some services. For installments, the size of the starting payment starts from 30%, and the more the buyer invests, the more profitable he will be able to purchase real estate.
- Registration speed. The conditions for buying an apartment in installments suggest that the identity of the buyer is not verified so carefully and for a long time, unlike a bank, where the procedure for examining the borrower's creditworthiness can take more than 3 working days.
- Timing. Before you arrange an installment plan for an apartment, it is better to expect the debt to be paid no more than three years in advance. While banks offer long-term loans - from 5 years. The borrower needs to remember that the longer he pays, the more interest he overpays.
- Interest rate. The contract for the purchase of an apartment in installments assumes the payment of the principal debt - the value of the property. If the developer decided at a certain moment to raise the cost per square meter, then this can be considered a kind of interest rate. In a situation with a loan, you will have to pay both the principal amount of the loan and interest.
Finding out how you can rent an apartment by installments, keep in mind that some developers offer to fix the cost of the object, however, with reference to the dollar exchange rate. To exclude the possibility of an unexpected markup, this issue is clarified in advance. By the way, if you decide buy a house in Kyiv, we recommend contacting the best luxury real estate agency THE Capital.
Buying an apartment by installments: documents and other features
It is no coincidence that many Ukrainians are trying to figure out how to get an installment plan for an apartment, since this is an opportunity to profitably purchase real estate. However, there are a number of points to pay attention to.
Read more:: What is self-construction and how to legalize it?
Developer reputation
Any investment requires checking who offers profitable investment. Therefore, you should collect information about the reputation of the developer and make sure of its reliability. There are open official sources for this, for example, registers and cadastral maps. An important point is the legality of construction, which is confirmed by permitting documents - all of them must be kept in the public domain on the official website of the developer and in his offices.
Meeting the needs
At this stage, the question of how to buy an apartment in a new building in installments is being decided so that it meets the needs of the buyer. You need to consider:
- Infrastructure development - the availability of all vital facilities within walking distance.
- Distance from work, study.
- The presence of a spacious parking lot.
- The presence of finishing or the ability to order repairs with furnishings on terms of installments.
Read more:: Where is it better to buy an apartment: in a new building or on the secondary market?
Terms of an agreement
The issue of registration of purchase and sale documents is extremely important, since this document indicates all the rights and obligations of the parties, including the terms of purchase. Experts of our real estate agency will tell you in detail how to draw up a contract of purchase and sale of an apartment in installments, we note important points:
- amount of payments;
- the fact of fixing the cost per square meter;
- the procedure for the transfer of ownership to the buyer;
- the state of the object in which it is due to be handed over to the buyer;
- the procedure for calculating fines, etc.
Thus, buying an apartment in installments in Kyiv or another city of Ukraine is inevitably associated with the solution of a number of issues. If you take into account all the nuances and enlist the experience of THE Capital experts, the process of acquiring real estate will be successful and hassle-free. Subscribe to our updates real estate portal and get the latest publications from the real estate agency THE Capital.
