PRIMARY AND SECONDARY HOUSING: WHAT IS BETTER?

19.02.2018 00:00
Articles about real estate | PRIMARY AND SECONDARY HOUSING: WHAT IS BETTER? Almost every person at least once in life faced with the issue of buying a home. Traditionally, the main factor of such a transaction is the cost of real estate, which limits the opportunities and dictates the priorities in the choice. The biggest influence on the price of an apartment is rendered by: its location (a concrete settlement and remoteness from its center), room and quadrature, and also the building material and the age of the house. The difference in the price of "secondary housing" and new buildings is decreasing
With all other equal conditions, as well as the same layout with technical condition, there is the issue of acquiring primary or secondary housing. At the moment, this is especially true, since the difference in their value over the past few years has been reduced.

Definition of the original concepts
The primary is called a dwelling, which has not yet been formalized ownership. Otherwise, the apartment exists only on design and construction documents, even with the already begun construction of the house. Primary real estate is subject to sale, obliging the developer to erect, put into operation, and then sell the living quarters in a multi-apartment building. Next, the buyer must register their ownership of the apartment, which from the moment of obtaining the appropriate certificate goes into the rank of secondary housing.

There are also cases when, by the time the construction is completed, not all apartments in the house have been purchased. Then, after putting the object into operation, the developer draws up the ownership of the unsold housing, and then sells it as a secondary one.

So, the secondary property is that which is in someone's property: private or legal entity or municipal (where people live under a social security agreement). If the premises are not privatized, then the state is its owner. Apparently, "secondary housing" can be both the premises of the old Soviet construction, and new ones.

The main trends in the convergence of prices of primary and secondary real estate


Reducing the difference between the cost of primary and secondary apartments in the past few years is due to a fall in prices for a "secondary housing" because of a decrease in the population's solvency. So, sellers prefer to concede to buyers with the purpose of the prompt sale of a premise (within half a year). Even cheaper is due to the high competition with the primary living quarters, the erection of which has recently acquired a massive character.

On the other hand, the cost of the "primary" is growing by the end of the construction period, and at the stage of putting the house into operation it can exceed similar secondary housing by 15-17%. Although two years ago the difference was 1.5-2%. But in general, the market for new buildings shows a decline in prices, which is due to increased competition between developers and the sale of low-cost premises in the early stages of construction.

Basic pricing factors
To determine why the price difference between the new building and the "secondary housing" tends to zero, we need to analyze the main factors that determine the cost of apartments:

The location of housing is a fundamental pricing factor. So, the high cost of an apartment in a large metropolis in comparison with small towns is due to a higher quality of life and the size of wages. And the location of housing in the vicinity of the center assumes the development of infrastructure, the relative proximity of significant facilities (shopping and entertainment centers, administrative buildings, shops, parks, business center, etc.), which significantly increases its price.
Affects the cost is also the presence of a number (in 5-10 minute availability) of the traffic intersection. The traffic intensity will increase the price by 2-3 thousand US dollars.

The year of construction of the house and the material from which it was built are also important for determining the price of an apartment. Brick relatively new houses are in great demand, and the least popular are the premises in the panel buildings of Soviet (and older) times;

The apartment, square and planning are important aspects of the formation of apartment prices. A large area and an individual layout are estimated above the small "Khrushchev".

The lower floors take precedence over high (excluding the first), which is reflected in the price increase. The presence of an elevator is also important.

Minor pricing factors are household conditions: telephone, garbage disposal, loggia (or balcony), water supply, double-glazed windows, independent heating and so on.
In the choice of housing, the immediate surroundings in the house, the reputation of the district, the ecological situation are of no small importance. And the presence / absence of repair in recent years on the cost of an apartment does not affect, except for the technical condition of the ceiling, floor and windows with communications.

Advantages of primary real estate
Starting from the above pricing factors, you can determine the advantages of buying a primary home:

use in the construction of modern houses of high-tech, durable and reliable materials, compliance with new security requirements;
design of spacious rooms with a convenient layout, according to new regulations;
the presence of double-glazed windows and meters for water and gas;
Elevators (sometimes also freight) are obligatory with underground and above-ground parking;
warranty period of operation of premises (5 years), namely - ceilings, engineering structures and walls with windows, which obliges the developer to solve problems at this time and compensate losses to residents.

But there are some disadvantages, this:

roughing of the apartment (just walls - without repair and communications), which involves significant additional costs for the buyer before settling;
new buildings, as a rule, are erected in places remote from transport arteries and do not have a developed infrastructure;
there is no wide choice of options, since liquid and budgetary housing is dismantled at the early stages of construction, and closer to completion is expensive expensive housing (with a large area), on the first and / or last floor, and also with a bad view from the window;
there is no possibility to register yourself and relatives;
unsatisfactory conditions for mortgage lending, which is associated with the accreditation of the developer of the facility in 2-3 banks, whose terms are often not profitable, and rates are higher by 1-2%.

But over time, residential neighborhoods are overgrown with the necessary shopping centers, social and other infrastructure facilities. Is it worth it to be the first to live in an apartment in which nobody has ever slept, and the lack of alcoholics and drug addicts among neighbors (they are unlikely to acquire housing in a new building) of all the above inconveniences - everyone decides for himself.

Advantages of secondary real estate
For secondary housing characterized by the following indisputable advantages:

the possibility of early settlement, since there are already communications with the repair;
a wide range of options (including the floor, the view from the window, the proximity of stops and so on);
a large number of proposals for mortgage lending;
immediate self-registration and family;
well-equipped infrastructure (if the house is more than 5 years old).

But there are a lot of shortcomings, which often refer to the "secondary housing" of the Soviet construction, where for a long time there was no major repair:

wear of bearing walls due to long-term operation and environmental impact;
risk of destruction of old engineering communications;
a small area and an old layout.
But for the sake of fairness, it should be noted that unreliable walls with communications can be in new homes, as irresponsible developers save on material and do not adhere to the norms of construction, as well as safety precautions. Therefore, when buying real estate in the primary or secondary market, it is necessary to hire an expert and check the safety of housing. Sometimes, the funds that will need to be invested in an apartment are up to half of its value.

What kind of housing is more profitable to buy
If we compare the advantages with the shortcomings of primary and secondary housing, the main priority factor should be the minimum risk of such a transaction. So, when purchasing an unfinished apartment in a new building, the probability of delaying the delivery of the house in operation is great because of the developer's failure to comply with the terms of construction. Unfortunately, in recent years, bankruptcies of construction companies have become frequent before the house is surrendered, which is fraught with the loss of the invested funds.

The government, obliging developers to insure their responsibility, tries to minimize the bankruptcy of companies, but cases continue to happen. Penalization of contractors also does not particularly affect the compliance with deadlines. Therefore, the construction company should be carefully checked before such an expensive acquisition as an apartment.

The purchase of secondary housing is associated with the risk of additional apartment owners or juvenile / disabled tenants claiming the area after the transaction is completed. In this case, such persons (their representatives) may, through the court, recognize the sale as invalid, which also deprives the buyer of the invested funds. To minimize / eliminate this risk, it is necessary to hire an experienced lawyer to check the purity of the transaction.

Earlier it was reported that where it is better to live: in Kiev or in the suburbs.

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