In 2020, the Russian housing market will change. Banks expect mortgage rates to drop to 8%, while rental prices may rise to 10%. Against this background, many are wondering which is more profitable: rent an apartment or buy. About new trends in the housing market - in the material of Life.
Why rent is getting more expensive and mortgage getting cheaper
The housing issue for many Russian families is still the most urgent. Some people believe that renting a house is easier and cheaper, and hanging on yourself a long-term collar in the form of a mortgage is just a nightmare. Others have a fundamentally different opinion.
This year, two parallel trends began in the housing market. Mortgage rates may approach 8%. This was stated by the head of VTB, Andrey Kostin, at the World Economic Forum in Davos. Thus, the course continues to increase the affordability of housing. But the cost of renting apartments in major cities of Russia, on the contrary, may increase by 5-10%.
Every tenth Russian was homeless
- In 2020, we forecast a slight gradual increase in rental prices - by an average of 5-7%. The main stimulus will be increased demand. The intensification of the rental market is due to the influx of nonresident and foreign tenants of housing, as well as an improvement in the transport situation, ”said Oksana Polyakova, Deputy Director of the Department of Apartment Rentals of the Inkom-Real Estate agency.
Take a mortgage or still pay someone else's uncle?
In fact, there is no unambiguous answer to the question of what is more profitable, rent or buy. It all depends on the category of housing, as well as the goals and capabilities of the buyer. Director of the Department of the secondary market of the agency "Inkom-real estate" Sergey Shloma noted that some buyers are in a hurry to take advantage of the reduced interest rates on loans and purchase housing. However, you need to make a detailed calculation before buying.
- The activity of buyers was promoted by forecasts about the growth of real estate prices in the coming year. They mainly relate to the primary housing market, where more and more developers are switching to work through escrow accounts. In the future, the objects exhibited in residential complexes will go to the secondary market, which can lead to a gradual increase in average price indicators in the segment, - Sergey Shloma explained to Life.
He stressed that the level of paying capacity of the population is low. In such conditions, not everyone can afford to buy real estate, even if it is possible to obtain a mortgage on more favorable terms. As a result, a certain group of consumers still have to postpone plans to purchase an apartment, giving preference to rent.
However, the renewed maternity capital program can give an impetus to the purchase of your own home this year.
According to the expert of the Academy of Finance and Investment Management Alexei Krichevsky, in many large cities of Russia the amount allocated by the state for the first child will cover the first installment on a mortgage.
- The point here is that banks, after lowering mortgage rates, are extremely reluctant to approve loans to borrowers with a down payment of less than 20-25% of the cost of housing, and in many large cities of Russia prices for one-room apartments start at two million rubles. Accordingly, 466 thousand rubles of maternity capital just cover more than 20 percent of the cost, - Alexey Krichevsky explained.
Putin: mother capital can be spent on a mortgage until the child turns 3 years old
At the same time, lowering loan rates plays into the hands of borrowers, especially if there is an opportunity to pay a little more than provided for in the agreement. The expert also gave practical advice on how to make the right decision when choosing between new buildings and secondary housing.
- There are a number of questions that potential buyers should answer themselves before buying. If we are talking about a new building at the construction stage, they must clearly understand whether they have a place to live during the construction of the house. Will they have money for repairs, if we are talking about an apartment without finishing, and is the developer reliable? The issue of the district infrastructure is also important, - the expert advised.
When buying a secondary home, the issue of renovation may also arise, but at least there will be no problems with the availability of the necessary social structures and there will be no need to spend additional funds on rent, which is especially important when buying on a mortgage.
If the amount for the initial payment is small, you will have to rent a house during construction, and then make repairs, the purchase may not be so profitable. In this case, it makes sense to rent a house for some time and save up money for the down payment on the secondary housing. In short, if you buy an apartment, it will be finished and ready to move in. Then the amount for the payment of the mortgage will actually correspond to the rent for rented housing. Especially if the down payment is more than 50%.