WHY NOT DEVELOPING suburban mortgage? - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine
Banks raise loan rates to purchase land. For the last two months she has grown on average by...Banks raise loan rates to purchase land. For the last two months she has grown on average by 3%. But, oddly enough, with the demand, this trend is not connected. Loans to purchase land or suburban property, occupy a small place in the portfolio of banks. Earlier analysts predicted a boom in the field of suburban mortgage lending вЂ“ but this has not yet come true. Trends operating in the urban real estate market, don't work when it comes to the sale and purchase of land or house.The increase in interest rates is observed in all types of lending. But a 3% increase in two months, and by 0.6% for the month, the experts are inclined to consider significant. If you buy land on credit for ten years, the percentage will amount to UAH 19,54, $ 15,03, in the Euro - 14,35.Speculator not to loan"Lending rates to earth are now at the highest level", - said the Internet newspaper "NOW" the analyst of the company "Prostobank Consulting" Alexander Gray. The rise in price has led to a decline in demand. But there are other reasons why neither individual buyers nor the builders of cottage towns are not in a hurry to borrow.Buyers of land and housing in the suburbs can be divided into two types. The first is the so-called speculators, which has left the market of real estate capital, attracted by higher growth in the prices of house and land. They buy with the purpose of selling more expensive because loan, especially given the increasing interest rates, they do not. Leading specialist of Department of marketing company SV Development Sergey Kostecki Internet newspaper "NOW" has explained: "In this segment, the loans are not taken at all. Because the repayment interest rates significantly reduces the desired profit".The second type of buyers вЂ“ the future owners. They acquire land to build my house there. Among them already have and potential clients are banks, but those are not more than 5%. According to Kostecki, if a person has enough money to purchase the land, have, and to build a house. Areas, as a rule, buying for cash, but the percentage of people that take a loan for construction, much more. According to the company SV Development, more than 70% of private houses built during two summer seasons вЂ“ it is on such term loans and are taken.On the land market and suburban housing to a much greater extent than the credit rate, affects the dollar. Spring oscillation of the American currency has led to the fact that land prices have been growing tanks pace, jumping over six months by 11%. "If the dollar has depreciated by 10%, it immediately affects the size of the bargain вЂ“ now it either does not exceed 5%, or non-existent. If the trend of increase in the dollar continues, land prices will rise gradually," says Kostecki. Under forecasts of experts, in the end, the value of land in Kyiv region will be 25 per cent above the price level of early 2008.Castles in the airDespite the fact that every year the market for cottage housing out dozens of real estate companies, to attract them as major clients for land loans from banks is also difficult. A large number of companies-builders do not have the rights to those plots on which they build a cottage villages. Typically, developers get the land from the local village councils on the terms and conditions of such garden or dacha cooperatives. Another option вЂ“ take areas to rent for long term, often for 49 years. In a press-service SK "Europe" Internet newspaper "NOW" reported that this practice is very widespread. Even in those cases when it comes to large gated communities. This is a very great risk to buyers since subsequently, similar plot can give the home owner a lot of problems. Local authorities may withdraw the excess land or raise the rent for her. Therefore, market experts advise potential homeowners to buy property in those companies who own the rights to land plots.Risks in the BankThe banks themselves also consider land loans business troublesome. Lending for the purchase of land is quite a new service for domestic financial institutions. Why it is considered risky. The borrower will have to ensure that the site was appropriately decorated, and most importantly вЂ“ was used for the intended purpose. After all, if it turns out that he meant to conduct, for example, agriculture, the Bank will not be able to implement it. So often the banks when issuing loans for land require the initial payment or the existence of other collateral.Loans for building a house - more popular service, but also accompanied by a lot of trouble for the borrower. No Bank will give a loan without pre-compiled project documentation.