Marketing "stuff": the closer the deadline, the condition worse
Installments and discounts - no new mechanisms for primary real estate market. Particularly active developers began to apply them in times of crisis, when the transactions were few. According to director of consulting company "RealEkspo" Victor Kovalenko, "Mechanisms of discounts and installment payments are used to increase sales volume and attractiveness of the property."
Related article: The draft law on monopolies would increase the cost of housingAs explained by the expert, the installment greatly increases the interest in the object, when sales begin on the "low" stage of readiness. And when the builder - a small amount of unsold apartments, and they are in demand, then, and there is no need to hire. And the closer the deadline at home, so become less attractive sales terms and conditions under this scheme.
According to Victor Kovalenko, in practice installments are actively using the company that is building multiple buildings.
Installment attractive to buyers. Given the high prices, few of them has the required amount to buy an apartment or house at once. Many need time to raise money, and installment allows you to distribute costs. Victor Kovalenko calls a number of advantages to the installment lending: the buyer does not require the approval of the bank, so no need to collect a lot of inquiries about his income. Yes, and interest on installment is considerably lower than the mortgage. At a certain period of installment can be completely interest free.
However, in installments, there are downsides. "Typically, it involves more expensive apartments, and the more complete the term of payment - the higher the ultimate cost of housing" - warns Victor Kovalenko.
But the discounts - those really and allow the buyer to purchase an apartment at a lower price.
For the developer discount - still a necessary measure. This may be a cheaper cost per square meter in the shares, or a bonus when buying an apartment, depending on the number of rooms.
Victor Kovalenko believes that today the real discount - a rarity. Typically, the discount is granted in advance of price increases and is psychological rather than economic in nature. Moreover, they "give" only when full payment. "The actual discount was only at the peak of the crisis, when some companies are in desperate need of funds to continue construction and other obligations", - explains Kovalenko.
Do not look for the actions of the seller of charity. It there can be no
Without a doubt - buyers and sellers solve different problems. The buyer hopes that he could buy living space is cheaper, and sellers on the contrary - try not to lose their benefits.
The mechanism devised installment sellers, so a priori it is not focused on charity. Exception - short-term interest-free installment at the conclusion of the treaty in national currency. Buyer pays for not less than 30% of the total value of the apartment, and the rest of the amount a person receives the installments for a specified period. Buyer shall each month on a fixed schedule in equal shares to repay the remaining amount under the terms of the transaction. There is no overpayment in this case, the buyer will not.
But prices are in UAH appear not at all sites. In this case, the developer warns that "payment is made in UAH according to the official rate of hryvnia to U.S. dollar established by the NBU on the day of payment. And as the installment payment means different payment terms, then the amount subject to a floating rate, the logic will be different.
When it comes to longer-term installment plan, or the buyer tends to reduce the initial payment, the conditions do not change in his favor. For example, in installments of up to 12 months, with the first installment of at least 70% of the value, the installments may even be interest free.
According to Victor Kovalenko, the most typical practice in the primary market, where the down payment is 30 to 50% of the purchase price and installment shall be issued for a period from one month to one year fixed interest rate in UAH.
Before you sign a contract providing for installments, the buyer should carefully check how much it would cost him. As for discounts, it's a nice gift, except when the discount is sold stale, non-liquid goods.