2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Today, one of the main indicators of the well-being of an ordinary citizen is the availability of real estate. And all due to the fact that housing prices have set sky-high, and do not stop at the achieved level. There is nothing surprising in the fact that many approach the choice of housing with the utmost responsibility - after all, for many, this is almost the main purchase in life, which may not have to be repeated.
When future buyers have to face the concepts of primary and secondary housing, then doubts and disputes begin. To some, a new building seems more profitable due to the low market price, and it is not without other advantages. But this does not mean that the primary market can be considered ideal, and the apartment that was owned has become overgrown with shortcomings. Let's figure out what constitutes secondary housing, what are its pros and cons.
Resale housing - what is it?
First, let's understand the concept itself. For many, the secondary housing market can only be represented by old stock apartments. That is, there will be no talk of any new layout and modern living conditionscan not. In addition, there are old elevators, meters, wiring and pipes. And the neighbors leave much to be desired, while dubious personalities do not settle in new buildings.
Undoubtedly, there is some truth in these statements. But even in the secondary market, apartments are different. Secondary housing - this means that the property has already been issued the right of ownership. That is, the main difference that separates the primary market from the secondary market is the presence of a record of the assignment of property in the Unified State Register.
A used apartment is always old?
Why shouldn't we assume that secondary housing is necessarily an old, worn-out house? Because an apartment in a new building can also be a used one - doesn't anyone sell a completely new apartment in a newly built house due to a move or other circumstances? In addition, if not all apartments are sold after the commissioning of a new house, the developer registers the property for himself, and unoccupied housing automatically becomes secondary.
What are the apartments on the secondary market?
Sessary housing is a rich selection of apartments of various categories and characteristics. Real estate specialists distinguish several types of real estate in this market, classified by physical characteristics and level of value:
- Low-grade housing - apartments in houses of the old year of construction, with a height of 2-3 floors. In such premises, there are often nothe main communications are sewerage and water supply. Homes are often heated by stove heating.
- Standard premises - ordinary secondary housing, one-room or two-room apartments in typical buildings with a height of 5-16 floors.
- Superior apartments - accommodation in modern and typical houses, characterized by increased comfort. Characterized by the presence of utility rooms such as pantries and dressing rooms, as well as a greater number of bathrooms than in ordinary premises.
- Luxury housing - class A real estate, the feature of which is the presence of an ennobled house territory, parking, concierge and security guards. In luxury houses, as a rule, no more than 30 apartments.
Other factors affecting pricing
It should be borne in mind that the price of an apartment may fluctuate depending on the location of the house and the availability of developed infrastructure in the housing area. So, a comfortable and well-appointed one-room apartment of an improved type, located on the outskirts of the city, can cost much less than a modest one-room apartment in an old-plan house in the center. Pricing is also affected by the physical condition of the premises and their area.
What are the cons of an apartment on the secondary market?
Although secondary housing is not necessarily "second-class" housing, but such real estate is not without some disadvantages. We will not take into account the problems with communications in really old houses. As an example, consider a comfortable apartment in a freshly designed house. Even herenew owners can expect pitfalls:
- Unclean "legal history" of the apartment. Stories have long been known about property owners serving time in places not so remote, or in a psychiatric clinic. From this point of view, second homes are like a pig in a poke.
- Unpaid debts for utilities or other payments, arrest of the apartment by bailiffs for non-payment of debts.
- Incorrectly executed documents for an apartment. If such a fact is found out after the purchase by the new owners, the contract of sale is invalidated and the transaction is canceled.
- Unfavorable neighbors. To some, this problem may seem insignificant. But, as polls among the population show, noisy and scandalous neighbors often provoke some citizens to change their place of residence.
- Price. Like it or not, inexpensive secondary housing can only be in Stalin or Khrushchev with old and rusty pipes. In other cases, the cost of an apartment on the secondary market in new buildings significantly exceeds the cost of apartments that have not been commissioned.
- Another not the most pleasant little thing that does not allow you to save money when buying an apartment: today it is almost impossible to buy secondary housing without intermediaries. Homeowners prefer to turn to specialists in order to quickly sell their property. And they add their commission to the cost - after all, someone has to pay for the work of real estate agents.
Advantages of the secondary housing market
Despite a number of shortcomings, real estate experts are actively defending the secondary market. There are quite logical reasons for this:
- There are many offers on the market. This allows the buyer to choose the area, category and type of housing that will meet his requirements.
- Mortgages for secondary housing are provided more willingly and at lower rates. This is due to lower risks for the bank when concluding a real estate transaction.
- The apartment is in the "buy and live" mode. Unlike a new building, when the house is not ready, according to the documents, the apartment does not yet exist, and after commissioning, long-term finishing work is most often required.
- The cost of secondary housing, of course, exceeds the price of an apartment in a new building, but this is more than offset by the lack of the need for repairs and decoration.
How do banks feel about the secondary market?
As already noted, mortgages for secondary housing are provided by credit organizations much more often than for new buildings. This is due to several reasons. First, the market for new housing is being updated at a slow pace, while the secondary market offers a rich selection of various price categories.
Secondly, housing that exists only in the project, as in the case of new buildings, represents some risk for the bank. Credit institutions carefully choose developers for cooperation, but no one is immune from unforeseen circumstances.
Requirementsbanks to the secondary market
But credit organizations make their demands to the apartment that has been owned. After all, real estate becomes bank collateral for the entire loan period. In the event that the borrower becomes financially insolvent, the bank will be required to sell the collateral so as not to incur losses. Therefore, the apartment must meet certain physical characteristics so that nothing prevents its subsequent resale.
- The house in which the borrower plans to purchase housing must be built no earlier than 1957.
- A mandatory condition is the availability of all modern communications. The bank will not take as collateral a house that does not have hot and cold water supply, heating and sewerage.
- By the time the mortgage is paid in full, the house in which the apartment is located should not be physically worn out by more than 70%.
What about the legal cleanliness of housing?
Banks also impose requirements on the legal history of the apartment - no encumbrances are allowed. It is not allowed to register in the premises of third parties, as well as the presence of arrests or pledge agreements with other credit organizations. In addition, the bank will require all title documents and check them for errors and inaccuracies. This is also beneficial for future owners - they will receive a well-tested apartment, in which unpleasant moments will not be found over time.
