"Today, banks lend to housing purchases in the secondary real estate market. Program of real estate financing during the construction phase provides a fairly narrow range of financial institutions ", - chairman of the board" Avtokrazbanka Sergei Majewski. According to him, this type of lending accounted for approximately 10-15% of the mortgage portfolio of financial institutions, and this passivity on the market "new building" due to relatively high risks.
Related article: VTB Bank has improved conditions for mortgage lendingAs explained by Mr. Majewski, generally reserved attitude of banks to lend to the primary residential real estate market for several reasons: lack of stable sources of funding - long-term loans, a large speculative element in housing prices, the risks associated with the design of building permits, improper execution of their developer's obligations.
"Application deadlines for real estate operation is often thwarted - shares the experience of the banker. - Active-start funding the construction of the cottage is also hampered by the absence in Ukraine of a civilized land market. "
In Ukraine today, some banks say about the suburban real estate lending, but a detailed analysis proves that such cases are rather rare. As told in the press service of Ukrsotsbank, such a service they have is not a priority. "In the banks, this service will not operate at full capacity, not yet work legislation.
After all, the financial institution to any transaction approach is very meticulous in terms of legal justification, - explained there. - Our experts predict that 2007 will be banks that made an interesting proposal in this market because it is very interesting. But until all the pending changes to it. "
Nevertheless, today the banks are exploring the development of suburbs, offering three types of loan: purchase of land for house building, construction, real estate in the cottage.
In the first case there will most problems, since the need to execute a contract on long-term lease. The second one - when building a house bank will provide a complete package of permits and design and construction documents: the approved project, acts of acceptance and connection to the gas, water and electricity, etc.
The amount of money the bank will provide the parts in the process of construction, strictly controlling the use of funds.
Lending cottages is only 10-15% of the mortgage portfolio of banks, due to relatively high risks.
"Gradually, begin to market lending program of construction of cottage townships, and private homes", - told Mr. Majewski. According to him, funding for such townships is implemented in two schemes. Some banks lend only to buy houses in certain construction companies - typically, a subsidiary of financial institution, while others enter into cooperation agreements with many construction companies.
"The biggest list of programs to finance the construction of cottage townships observed in the vicinity of the capital and western regions", - said Mr. Majewski. This kind of loan is the least troublesome. Credit is made in a very short period of time, and will pledge the purchased real estate.
The amounts provided in the loan to buy suburban real estate will vary between $ 100 thousand, and sometimes more. Also, there is no fixed interest rate. "As for the credit purchase of country houses, the decision is made by banks on an individual basis, after reviewing the documentation provided by the borrower, - said Mr. Majewski. - Interest rates in this case are set differentially.