Alternative mortgages - real estate leasing





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09.12.2009 11:49
Real estate leasing - a completely new for the Ukrainian financial market services. Actually, as he leases. But if the leasing of cars and industrial equipment business has already heard, then that is leasing commercial real estate, today pr

Get real estate leasing is more expensive than buying on credit. But leasing has its advantages.

A rare service in the development of


Ukrainian companies are three basic ways to get the right to use a real estate: rent, buy on credit and, in fact, a 100 per cent payment of the cost. There is another way, in the West, but not developed by us - finance leases.

Companies engaged in real estate leasing, appeared in the late 90-ies. Now they can count on one hand. The service is not developed, because, firstly, our leasing companies still do not have this amount of assets that would buy such expensive items, and secondly, property - this is one of the most liquid and profitable target for investment. Even if a company has the money, now it is much cheaper to buy property, rent it out in an ordinary lease, and after some time (from 3 to 10 years) to sell. However, some lessors still provide service real estate leasing. It's absolutely profitable, then there is a company in any way make money. Just in case the rental she can earn even more.

As in the case of mortgage banking, the customer regularly pays a portion of the value of the object (similar to bank lending - the payment of "body" of credit) and pay interest or fees. The sum of interest paid or commissions also include the gross expenditures

Of course, companies rent space on lease were not charitable impulses. They have their own motives, depending on the type of lessors. One type - it's subsidiaries of large banks. Banks, claiming the status of the financial supermarket, guided by the desire to provide customers with the widest range of financial services, including alternative mortgage lending. As an example can lead UkrSibbank (one of the largest mortgage lenders) and its subsidiary company "Ukrainian Leasing Company" (the first in Ukraine began to transfer property to lease).

The second type - universal leasing company with strong financial and founder. They deal with all possible types of leasing (leasing cars and trucks, industrial equipment, hardware, software, etc.). Real estate for them - also the opportunity to position itself as a supermarket, but not obschefinansovy and leasing. This company is a universal, for example, Ltd. TIBIAY Leasing ("daughter" a major Dutch company TBIH).
Unifying moment

Financial leasing is, in essence, combines all three popular ways to "access to the premises - rent, purchase on credit and the actual purchase. Simply put, leasing - a long-term leases. Client leasing company did not immediately receive ownership of the property (at the time of the contract owner is a leasing company). Therefore, if the client doubts the quality or convenience facilities, lease, he can "try" him, asked to replace or even refuse to buy it at the end of the lease agreement.

But unlike the classic rental, real estate passes to the lessee with all the attendant tax advantages. For tax purposes, receipt of property leases is equal to its purchase. Therefore, the lessee enhances the corresponding group of fixed assets at book value of the leased object and receives a tax credit. Later the client leasing company charges depreciation, thus reducing their gross income.

Considering that the rental rates are rising and lease payments decreases with each passing month, leasing may be even cheaper than renting.


As in the case of mortgage banking, the customer regularly pays a portion of the value of the object (similar to bank lending - the payment of "body" of credit) and pay interest or fees. The sum of interest paid or commissions also applies to gross costs.

After a certain period the client has the right to buy property on the residual value. Or not to buy. In the latter case, the company will return to him the value of property minus the outstanding part and the amount of depreciation. And the amounts paid as interest or fees for using the service will be comparable to rental rates. Considering that the rental rates are rising and lease payments decreases with each passing month, leasing may be even cheaper.
Attractive flexibility

Opportunity to change the object of lease or to refuse to buy it at its residual value distinguishes leases from buying on credit. It is very important if the buyer is not convinced that the object it is absolutely satisfied. To understand the suitability of a particular building, several inspections is not enough. For example, if the office (warehouse, etc.) show in the summer, it is very difficult to understand how it is heated. Before examining the masters can hold cosmetic adjustment, and the client does not know what this building is constantly broken elevators, leaking pipes or a problem with cable.

Subsequently, the troubleshooting can result in a lot of money on which the acquirer did not count. In addition, it may cause some kind of force majeure. If the event of fire, and the object was bought on credit, the insurance company pays compensation for the lending bank (although the borrower pays the insurance). The Bank is not obliged to spend the money for repairs - this is just compensation for the fact that the pledge has lost its original properties, and its market value has fallen. Repair the premises will be the owner, that is the borrower of the bank.

In the case of a lease the owner is a leasing company. Customer may request to replace the object, not to spend on repairs. Of course, it does not guarantee that the lessor will quickly find an alternative and that this alternative would be equivalent (depending on what is written in the contract). But the chance is still there.

Opportunity to change the object of lease or to refuse to buy it at its residual value distinguishes leases from buying on credit.

Leasing distinguishes the fact that in this case there is no need to implement procedures for the sale of the premises. The leasing company has already take care of everything and notarized. Of course, their costs, it will try to lay in the cost of leasing. But the client saves time and effort of lawyers. Besides, he can not worry about the "purity" of the transaction and the integrity of sellers. After all, buying a property on credit, you can get caught on the hook for scams that operate on false identities and are not the true owners (especially if it is not about the office business center, and the apartment as an office). Two such cases recently occurred in the Donetsk region.

The probability that the scammers will use the leasing mechanism, practically reduced to zero. No one will fool your head so complicated scheme. In addition, the leasing company is not required to pay the entire cost of the premises immediately. If the victim of fraud itself has become a leasing company, then that is her problem. By the time the customer receives the right to buy the object, the truth probably float to the surface.
Cons, pros do not cover

Commercial banks lend to purchase commercial property at 16 - 22% in local and 12,5 - 16% in U.S. dollars. Leasing companies offer rates at 2 - 5% more than the bank. Nevertheless, it is said lessors, given the cost of working time, taxes on the exchange rate differences on loans, commission when buying foreign currency leasing becomes much more attractive lease.

But leasing has its disadvantages. The first of these - the limited selection of real estate. The leasing company may not be suitable to the client object. However, the company can buy the necessary property to the client. Audit object and execution of the deal will take time. And there is no guarantee that this will give real estate to lease it to the customer.

Another factor that darkens the attractiveness of this form of acquisition of commercial real estate - leasing is more expensive than bank credit. The reason is that the primary (60%) source of financing for Ukrainian leasing companies, according to the State Commission for Regulation of Financial Services - is bank loans. That is, the leasing company should be put in the customer's payment to amounts that would cut off the interest on its own loan, paid back the cost of processing the transaction to purchase the leased object and its service so even given the opportunity to earn a profit. Thus, banks lend to purchase commercial property at 16 - 22% in local and 12,5 - 16% in U.S. dollars. Leasing companies offer rates at 2 - 5% more than the bank.

However, the lessors contend that in fact it is not. "If you calculate just the payment schedule on paper, the leasing company will offer a little more expensive than a loan. But if we save time and effort of staff client savings hidden costs that do not appear in the offer (insurance, real estate registration and ensuring timely payment of taxes for the purchase and annual payments for land (taxes or rent), taxes on the exchange rate differences on loans , commissions when buying foreign currency and settlement and settlement services), then we can say that the leasing cost is justified for a client "- the director of the Ukrainian Leasing Company" Elena Zolotarev.

At the same time, other conditions (term loan, advance payment) from the leasing companies are much softer. For example, UkrSibbank mortgage loans to corporate customers for 7 years, demanding pay not less than 30% of property value. A subsidiary company of the same bank - "Ukrainian Leasing Company" - can provide real estate on lease for a term of 10 years. The customer has to pay only 20% of project cost. Elena Zolotarev said that leasing companies are offering more favorable terms of insurance than banks. Namely: the installment payment of the insurance payment (banks are asked to pay at once), lower tariffs, the possibility of individual choice of insurance conditions and tariffs.

It is interesting that the leasing of real estate has not yet received a wide geographical spread. Unlike a bank loan, it is available only in a capital city and several regional centers. It would have no value if surrendered for leasing vehicles or equipment: come to another city and took to the property with them. The building can not be taken away. Control the property in another city the company is difficult. Therefore, borrowers from small towns do not have an alternative to credit.

And the rest of lease has the same advantages as the bank mortgage lending. To an object, acquired on lease or loan can not be levied any third party. Signing the contract, the client fixes the cost of housing, which is important in the fast-growing rental rates and do not stop growing real estate prices. Given that the client has the right to object to the property (in the case of lending - has already received), he may conduct reconstruction and repair of its buildings, while the tenant can simply "ask" him from the premises.

www.zagorodna.com

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