Of course, there are risks in shared construction, but this does not mean at all that one should neglect such an opportunity to acquire one's own square meters. In addition, due to the fact that such a difficult situation has developed in the country today, this will be a good way to preserve your savings. After all, real estate is one of the safest and most profitable types of investment. Moreover, shared construction has not only disadvantages, but also a very attractive advantage!
Shared construction is ...
The fact that today many Russians decide to purchase real estate using the shared construction program is not at all surprising. Indeed, the economic situation in the country leaves much to be desired, and the risk of default is getting closer. In simple terms, shared construction is a type of construction in which the developer, in order to implement his project, attracts funds from individuals who subsequently become full owners of their own apartments in this house. It is worth noting that it is with these funds that construction work is ongoing. The benefits of this are clear enough. The developer does not use credit for the implementation of the project, and the participant in shared construction acquires his legal square meters at a fairly low cost and has the ability to pay the cost until the end of construction. Unfortunately, fraud cases are very common in our country, so many do not run the risk of contacting similar programs. But for those citizens who do not have large sums for the purchase of housing, this method is the most profitable. In principle, it can be quite safe if the participant in shared construction will follow some precautions. For example: check the availability of the necessary documentation from the developer, building permit, license and more.
How to buy an apartment in an apartment building
In the face of ever-increasing real estate prices in our country, shared construction is a very profitable way to purchase housing. After all, after the project is fully implemented, the apartments in it increase significantly in price. In order to acquire real estate with the help of such an investment tool, it is necessary to conclude a special contract between the developer and the client. As already mentioned above, before starting cooperation with a particular developer, it is necessary to check all the necessary documents that confirm the legality of his work. Do not forget that we are talking about large amounts of money and that the risk of transferring them is very high. It is worth paying attention to how many houses this developer has already built, as well as to the presence of problems during the implementation of previous projects.
Many companies often use a new legal entity to build a new home. It is very important to check who exactly is its founders. And do not forget that real estate should be like. Participants in shared construction are often disappointed after being settled on acquired square meters. Most often this is due precisely to the fact that the owners did not pay due attention to such trifles as infrastructure. It is important to pay attention to its presence nearby: a kindergarten, a store, a bank branch, a clinic, parking and more.
Documents required to conclude a contract
Due to the fact that often there is not enough money to buy an apartment, many choose to purchase square meters using an investment tool such as share building. Documents provided by the selected developer must be carefully checked. This list must include: building permit, project documentation, lease or ownership of the land, state registration and constituent papers. There are a lot of “pitfalls” in the execution of the contract. First of all, the equity agreement (DDU) must contain the exact postal address. If it is not defined, then it is necessary to check the presence of a temporarily assigned address, and then check the additional annex to the contract with signatures and seals.
The complexity of the DDU lies in the fact that there is no one single true model, since the objects and conditions of construction often differ. But the main points are usually the same everywhere. Mandatory clauses of such a document should be: a detailed description of the acquired object, deadlines and responsibility for their non-fulfillment, rights and obligations of the parties, a list of force majeure, as well as the conditions and procedure for early termination, etc. The list of necessary clauses is quite long. Often, the remote control contains several pages. Before signing an important document, you must re-read all the conditions. And it’s best to ask a lawyer for help. In this case, the risks will be minimal.
Features of the mortgage
A few years ago, registration of a mortgage for the acquisition of real estate using equity participation was impossible. But today almost every bank offers such a service. The procedure for obtaining a mortgage loan for shared construction is significantly different from the registration of the same contract for finished housing. First of all, it is necessary to conclude an agreement with the developer. About all the intricacies of this operation was mentioned above. But nevertheless, it is necessary to pay attention to information about the object, the value of the property, the period and procedure for payment, guarantees for the construction object, plan and area of the premises, the term for the transfer of real estate. Without fail, the bank will require notarized documents of consent of the spouse (if any) and guardianship authorities (when conducting a transaction involving the property of minors). The contract passes the mandatory procedure in the state registration authorities. This usually takes no more than a month for one participant. After the document is completely ready, you must contact him at the bank. Further paperwork may vary significantly, depending on the selected lending institution. The interest rate, a package of documents, requirements for collateral, etc. - all this can essentially vary. The only thing that absolutely every bank requires is comprehensive mortgage insurance.
Quite often there is a need to resell housing under construction. Such a procedure is called "assignment of shared construction" or "assignment of claim." This scheme can be implemented even before the constructed building enters into operation mode and title documents for housing are received. An owner who has entered into an agreement with the developer may at any time resell his right to receive real estate to another individual after the construction is completed. It is important to note that any such transaction will be taxed without fail. Its payment by law rests with the first investor. Although in the bidding process, you can shift this obligation on the shoulders of the new equity holder. But it should be borne in mind that the amount of tax is calculated from the entire amount of the transaction, and not from the difference between the amount of investment and the size of the concession. Acquisition of real estate under assignment agreements is always relevant, as it is incredibly beneficial for most investors.
Equal participation or joint ownership?
Most often, young families decide to purchase new real estate. For this reason, the shared construction object is not only selected together with the spouse, but also a decision is made on what type of contract will need to be concluded. By the concept of joint ownership, it is understood that during a divorce, real estate will be divided equally, that is, in equal shares between its owners. This is because certain conditions are not specified in the contract. A spouse can be replaced by a relative or any outsider who will be included in this contract. If we conclude an equal share agreement, then according to its rules each owner of a certain part of the real estate can dispose of it at his discretion. The only limitation is that the first purchase right belongs to the second equity participant. And, for example, during a divorce, real estate will no longer be divided, since it is previously divided between the owners.
As for the payment for this service, there are quite a few options. The cost of housing as a whole, as well as the conditions under which payments will be made, will depend on how much the down payment will be. For example, when the full amount is paid within three business days, the client receives a discount from the developer from each square meter of real estate. Otherwise, the calculation of the contract is carried out within the agreed time, and the value prescribed initially cannot be changed, even under the pressure of inflation or simply in the process of construction. The advantages of paying the installment price of an apartment is that even with a small amount, a participant can solve his “housing problem”. At the same time, housing can be chosen with all the wishes of the client, starting with the number of square meters and ending with the characteristics and timing of its ownership. In addition, due to the small monthly payments, the shareholder can successfully control his budget.
Pros and Cons of Equity
The main advantage of acquiring real estate through equity is its low cost. Buying housing under construction, you can save very well. For the current situation in the country, this is a significant plus. In addition, the transaction can be concluded directly in national currency. Speaking about the disadvantages, first of all I want to say that when drawing up a shared contract, the client does not buy an apartment, but only the right to demand this housing from the developer. Unfortunately, the market is designed in such a way that the probability of receiving your property on time is extremely low. And the number of scammers is quite large. Therefore, you must be very careful about the choice of the builder and paperwork. Well, if there are questions that are difficult to answer on your own, it is best to seek the help of an experienced specialist. Shared construction of apartment buildings will always be popular in the real estate market.