How to buy an apartment in installments

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 apartment on installments is like a bank loan without high interest, which can also be used when buying real estate. Let's try to figure out what are the advantages and disadvantages of this method of payment and how to buy an apartment for payments?

Buying an apartment on installments: features

Installment - a type of real estate purchase, when the buyer pays the cost of the object in part, and the remaining amount is paid in installments over a given period. Full ownership is transferred after the last payment is made. Before buying an apartment in installments, you should consider that this method of purchase is only available on the new market. real estate Usually, construction companies offer short-term installments — from a few months to 5 years, and the down payment is more than 30%. To attract ordinary buyers and investors, many developers organize various promotional campaigns, for example:

• Fixing the price per square meter for a certain period.
• Discounts for large down payments, for example, if you pay more than 70%.
• Possibility to move into the apartment before paying the full price, etc.

Often, shares are combined, some features related to the complex being built are introduced.

The difference between an installment plan and a bank loan

When studying the question of how to properly buy an apartment for payments, many people also consider the option of lending in a bank. Financial institutions give large loans, but whether it is profitable, you need to understand in more detail:

• Who is funded? The installment is provided by the developer, the loan is provided by the bank. The last option always assumes the presence of a certain interest rate.
• The amount of the initial contribution. In Ukraine, various credit programs are offered, in some banks, large amounts are approved with a deposit of 25% or more. Also, financial institutions often introduce an additional fee for some services. In installments, the amount of the initial payment starts from 30% and the more the buyer invests, the more profitable he will be able to purchase real estate.
• Processing speed. The terms of buying an apartment on installments assume that the identity of the buyer is checked not so thoroughly and for a long time, unlike in a bank, where the procedure for examining the borrower's creditworthiness can take more than 3 working days.
• Deadlines. Before making an installment plan for an apartment, it is better to expect to pay off the debt in no more than three years. Whereas banks offer longer credit terms — from 5 years. The borrower must remember that the longer he pays, the more interest he overpays.
• Interest rate. The contract for the purchase of an apartment for installments provides for the payment of the principal debt - the value of the real estate. If the developer decided at a certain moment to raise the price per square meter, 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 the interest.

When figuring out how you can take an apartment for payments, keep in mind that some developers offer to fix the value of the object, but with a reference to the dollar exchange rate. To prevent an unexpected markup, this question is clarified in advance. By the way, if you decide buy a house in Kyiv, we recommend contacting the best elite real estate agency THE Capital.

Buying an apartment on installments: documents and other features

It is no coincidence that many Ukrainians are trying to find out how to get an apartment in installments, because it is an opportunity to buy real estate at a good price. However, there are a number of points that should be noted.

See also: What is self-development and how to legitimize it?

Reputation of the developer

Any investment requires checking who offers to invest profitably. Therefore, you should collect information about the reputation of the developer and make sure of its reliability. For this, there are open official sources, for example, registers and cadastral maps. An important point is the legality of the construction, which is confirmed by the permit documents - all of them must be kept publicly available on the official website of the developer and his offices.

Compliance with needs

At this stage, the question of how to buy an apartment in a new building on installments is being resolved so that it meets the needs of the buyer. It is necessary to take into account:

• Development of infrastructure — availability of all vital facilities within walking distance.
• Location distance from work, study.
• Availability of a spacious parking lot.
• The presence of decoration or the possibility to order repairs with furnishings on the terms of installments.

See also:

Conditions of the contract

The issue of drawing up purchase and sale documents is extremely important, as this document specifies all the rights and obligations of the parties, including the conditions of purchase. The experts of our real estate agency will tell you in detail how to draw up a purchase agreement for the sale of an apartment on installments, we will note the important points:

• amount of payments;
• the fact of fixing the price per square meter;
• the order of transfer of ownership to the buyer;
• the condition of the object in which it is to be handed over to the buyer;
• the procedure for calculating fines, etc.

Thus, buying an apartment on installments in Kyiv or another city of Ukraine is inevitably connected with solving a number of issues. If you take into account all the nuances and enlist the experience of THE Capital experts, the process of purchasing real estate will be successful and carefree. Subscribe to our updates real estate portal and receive the latest publications from the real estate agency THE Capital.