Today, one of the main indicators of the welfare of an ordinary citizen is the availability of real estate. And all due to the fact that housing prices have been sky-high, and do not stop at the achieved level. There is nothing surprising in the fact that many people approach the choice of housing with maximum responsibility - because for many this is almost the main purchase in life, which, perhaps, will not have to be repeated.
When future buyers have to deal with the concepts of primary and secondary housing, then doubts and disputes begin. Someone thinks a new building is more profitable due to the low market price, and it is not without other advantages. But this does not mean that the primary market can be considered ideal, and the previously owned apartment has become overgrown with shortcomings. We will understand what constitutes a secondary housing, what are its pros and cons.
Resale - what is it?
To begin with, let's understand the concept itself. For many, the secondary housing market can only be represented by apartments of the old fund. That is, there can be no talk of any new layout and modern living conditions. In addition, there are old elevators, meters, wiring and pipes. And the neighbors leave much to be desired, while dubious personalities do not settle in new buildings.
Undoubtedly, there is some truth in these statements. But even in the secondary market apartment apartment is different. Resellers - this means that property has already been drawn up. That is, the main difference that separates the primary market from the secondary is the existence of a record of the appropriation of property in the Unified State Register.
Used apartment - is it always “junk”?
Why shouldn’t you consider that secondary housing is necessarily an old, worn-out house? Because the apartment in the new building can also be formerly owned - doesn’t anyone sell completely new housing in the newly built house due to relocation or other circumstances? In addition, if, after putting a new house into operation, not all apartments are sold, the developer draws up the property for himself, and unoccupied housing automatically becomes secondary.
What are the apartments on the secondary market?
Resellers - a wide selection of apartments, various categories and characteristics. Real estate experts distinguish several of its types in this market, classified by physical characteristics and level of value:
- Low-grade housing - apartments in houses of the old year of construction, with a height of 2-3 floors. In such premises, often there are no basic communications - sewage and water supply. Heating of houses is often carried out by stove heating.
- Standard premises - ordinary secondary housing, one-room or two-room apartments in typical houses with a height of 5-16 floors.
- Superior type apartments - housing in modern and standard houses, characterized by increased comfort. The presence of utility rooms such as pantries and walk-in closets, as well as a larger number of bathrooms than in ordinary rooms are characteristic.
- Elite housing - Class A property, the peculiarity of which is the presence of ennobled house territory, parking, concierge and security guards. In luxury homes, as a rule, no more than 30 apartments.
Other factors affecting pricing
It should be borne in mind that the price of an apartment may vary depending on the location of the house and the availability of developed infrastructure in the area of housing. So, a comfortable and comfortable one-room apartment of an improved type, located on the outskirts of the city, can cost much less than a modest odnushka in an old-style house in the center. The pricing is also affected by the physical condition of the premises and their area.
What are the disadvantages of an apartment in the secondary market?
Let secondary housing - this is not necessarily a "second-class" housing, but some of the minuses such a property is not without. We will not take into account communication problems in really old houses. As an example, consider a comfortable apartment in a freshly designed house. Even here, pitfalls can expect new owners:
- Unclean "legal history" of the apartment. Stories about real estate owners who are serving time in places not so distant or located in a psychiatric clinic have long been known. From this point of view, secondary housing is like a cat in a poke.
- Outstanding debts for utility bills or other payments, seizure of an apartment by bailiffs for non-payment of debts.
- Incorrectly executed documents for the apartment. If a similar fact becomes clear after the purchase is completed by the new owners, the sales contract is invalidated and the transaction is canceled.
- Dysfunctional neighbors. To some, this problem may seem insignificant. But, as polls among the population show, noisy and scandalous neighbors often provoke some citizens to change their place of residence.
- Price. Like it or not, inexpensive secondary housing can only be in Stalin or Khrushchev with old and rusty pipes. In other cases, the cost of an apartment in the secondary market in new houses significantly exceeds the cost of apartments not put into operation.
- Another not the most pleasant trifle, which does not allow saving when buying an apartment: it is almost impossible to buy a secondary housing without intermediaries today. Landlords prefer to turn to specialists in order to sell real estate faster. And they add their commission to the cost - because someone must pay for the work of real estate agents.
Benefits of the aftermarket
Despite a number of shortcomings, real estate experts are actively defending the secondary market. There are quite logical reasons for this:
- There are many offers on the market. This allows the buyer to choose the area, category and type of housing that will meet his requirements.
- Mortgages for secondary housing are available more readily and at lower rates. This is explained by lower risks for the bank when concluding a real estate transaction.
- The apartment is in the “buy and live” mode. Unlike a new building, when the house is not ready, according to the documents, the apartment does not yet exist, and after putting into operation most often requires long-term finishing work.
- The cost of secondary housing, of course, exceeds the price of an apartment in a new building, but this is more than offset by the absence of the need for repair and decoration costs.
How do banks relate to the aftermarket?
As already noted, mortgages for secondary housing are provided by credit organizations much more often than for a new building. There are several reasons for this. Firstly, the new housing market is being updated at a slow pace, while the secondary market offers a wide selection of various price categories.
Secondly, housing, which exists only in the project, as in the case of new buildings, poses some risk to the bank. Credit organizations carefully select developers for cooperation, but no one is safe from unforeseen circumstances.
Bank requirements for the secondary market
But to the apartment that was in the ownership of credit organizations make their demands. After all, real estate becomes a bank guarantee for the entire loan period. If the borrower proves to be financially insolvent, the bank will be obliged to sell the security so as not to incur losses. Therefore, the apartment must comply with some physical characteristics, so that nothing would interfere with its subsequent resale.
- The house in which the borrower plans to purchase housing should be built no earlier than 1957.
- A prerequisite is the presence of all modern communications. The Bank will not pledge a house in which there is no hot and cold water supply, heating and sewage.
- By the time the mortgage is paid in full, the house in which the apartment is located should not be physically worn out by more than 70%.
What about legal cleanliness of housing?
Banks are required to the legal history of the apartment - no burdens are allowed. It is not allowed to register on the premises of third parties, as well as the presence of arrests or pledge agreements with other credit organizations. In addition, the bank will require all documents of title and check them for errors and inaccuracies. This is in the hands of future owners as well - they will receive a quality-tested apartment in which unpleasant moments will not be discovered over time.