Buying an apartment in return for available housing, secondary housing

The share of trade-in transactions in the real estate market is only 7 per cent, although this type of exchange is much more convenient and profitable than, for example, a mortgage on an old apartment.

How to buy a new building by mutual settlement, and what can prevent the exchange of old dwellings for a new one? People will always have problems changing apartments, changing neighborhoods, moving out with their parents, increasing living spaces — alternative deals take up a large share of the market.

Quite often, instead of old housing, people choose a new one. For quite a long time, there's a trade-in service in the real estate market, similar to the car market. To buy a new car, you have to give it to an old one, where experts estimate its value.

Various products are marketed under the trade-in label

There are two kinds of trade-in schemes. The first is standard when we pick a new structure, book it. Once a secondary apartment is sold, the money received goes as an initial contribution or full payment for the dwelling in the primary market, explains the differences in alternative transactions.Maria Litenetska, Managing Partner of the Metroum GroupThe second type is the so-called reverse trade-in, where the client first buys housing through our company in a new house with a mortgage, and then we sell his second apartment, and the money from the sale goes to repay the loan, adds Lithynsky.

Note that some companies combine terms, and the word trade-in should be understood to mean netting, i.e. an alternative transaction.

The conventional and widely used netting works precisely when the company helps the customer sell the apartment on the secondary market.Head of the New Structures Department of NDV Real Estate Tatiana Podikidishev.

According toMr. Natalia Shatalina, Director-General of MIEL Novostrato date, real estate providers are not providing services to replace one apartment with another, such as selling old dwellings and booking a new one:

Now, neither the developer nor the real estate agency buys a second-market apartment in exchange for a new dwelling -- they help make two good deals -- it's just not a good idea to take on another object with all the costs of its further resale, taxes, etc. The developer is only interested in selling his property, he doesn't need any extra burdens, and if there's gonna be a ransom, it's a big discount (at least 20 per cent), which is no longer a good thing for the owner of the apartment.

The modern model trade-in involves a long-term reservation, from 3 months to 3 months, of flats in a new building at the same price; for example, two projects in the Moscow region run by our company, Domodedovo Park and Norogorsk Park, offer a trade-in programme that allows us to change our apartment in the secondary market to an apartment in the new building.

But some companies try to provide the client with all the services in one package. Maria Litinsky tells us: "When a buyer wants to exchange his second home for a new building, he gets the whole turnkey deal. In fact, there's a "one window" principle here, where the realtor takes over all the work (assessment of the market value of the dwelling, verification of legal purity, advertising, search for buyers, transaction design, etc.). Another equally important benefit of netting is fixing the value of the new apartment (but it may not be in all the projects). Thus, the client will not find himself in a situation where he has to suddenly seek additional funds for the transaction or take a large mortgage.

• Secondary-fund apartments sometimes lose their price.
• Agrees with a colleague andLarissa Schwetsova, Director General of River Parkit gives the factors that influence pricing:

There is a pattern that, unlike the old car, the old apartment isn't cheap, so should we try to change the old apartment into a new one, if we look at the cost of the dwelling? The realtor Irina Scherbinina disproves that view. According to the expert, the old apartment is cheaper: "The old apartment is clearly losing value if it is old, i.e. it belongs to an old housing stock, where small kitchens, adjacent rooms, an awful approach, no elevator, and other "excessions."

- Secondary properties in old panel houses continue to lose a steady price, for example, in the Natatin sanctuaries, the cost of such an apartment is 10-15% lower than in our already rented and settled househouse, and this price gap will only increase.

The new construction is a promising development of infrastructure, given the construction and launching of new kindergartens, schools, health clinics, shopping centres, while the old house, on the other hand, continues to hamstrung, so trade-in, even when it comes to the purchase of ready-made homes on a "primary" basis, is always an investment transaction.

It is not surprising that there are some among our clients who change secondary dwellings to new ones, often the same area.

It's not a good idea to take a loan on a mortgage from an old apartment.

Wouldn't it be better to borrow a loan from an old apartment and buy a new one?Alexander Zubec, Director General, New Vatutinki, gives simple arithmetic:

If you give a mortgage to an old bank, it's a non-earmarked loan. It's a much higher rate than a mortgage. For example, Sberbank gives 14.75 percent on a loan term of between 10 and 20 years. Given these draconian conditions, there are few willing to take advantage of such an offer.

Total share of trade-in transactions — not more than 7%

What is the market share of alternative transactions? Is this exchange common among buyers? Maria Litiensky gives statistics:

- If alternative transactions involve the exchange of secondary housing for a new building rather than another secondary dwelling, the share is not more than 5 to 7 per cent, and it is interesting that 49 per cent of the mass segment projects in Moscow offer a trade-in service.

In particular, there are the "Quartals 21/19", "Phili Grad", "Reaver Park", and the New Vatutinki District. The problem is that, given the diversity of the choice of new structures with a trade-in option, not every second-market apartment can be taken for sale by a developer or realtor.

First of all, we don't look at apartments beyond 20 km from ICAD, and second of all, we don't work on land, country and commercial real estate, and interestingly, we've been asked, for example, to sell a business to buy an elite apartment.

Third, encumbered objects (other than mortgages) under arrest and so on are not accepted for sale. This limits the share of netting transactions.

It's better to have a spare home when you change your apartment.

Netting is convenient if you need to improve your living conditions: in return for old housing, the buyer obtains an apartment in a modern house created according to the latest market demand.

An important argument is the attractive prices in the houses under construction.

It will be possible to make the necessary purchase without a budget — solely from the funds received from the sale of the dwelling — consideringTatiana Podakidishev.

 

Is it possible simply to change the old apartment to a house in a new building so that the cost of the process is not disturbed?Irena Scherbinina realtor:: "Renovation" can only be changed to a new structure if the buyer has a second dwelling where he will move after selling the first one. Either there is a willingness to pay rent while construction and renovation is under way. There are nuances with registration. It is not possible to register in the new building immediately, which means you have to be registered elsewhere or have a stamp of discharge from the previous dwelling, and nothing more. The best option is to buy a new building for free funds and to live in your home while construction is under way.

The alternative is to rent from customers of an old apartment, suggestingOlesia Rudakova, Vice-President of the PN "Megapolis Service Realtors Corporation", Director-General of the AH "Orange" of Szlzlkovo:

You can buy an apartment in a new building, not at the boiler stage, but at a stock discount in an already built house, and if you already have a buyer on the old apartment or sold it safely, you can arrange with the new owner to rent your former apartment while you're renovating the new building.

Of course, there is a need to pay new owners rents, often slightly higher than the market, but it is possible to get rid of both the trouble of finding rental housing during the renovation period and the need to avoid an additional move, and it is also cheaper than to process a mortgage and bear the cost even for a short time.

By the way, this is the most common option in many local real estate markets today.

Mortgage in housing: the pros and cons of such schemes

Not every person has the financial means to enable him to buy his own housing for the housekeeper; in such a situation, the only sure solution would be to buy an apartment on loan or participate in a new mortgage programme.

Today, many credit and financial institutions and large construction companies offer various programmes to individuals, but special attention should be paid to the mortgage of housing.

Let's learn more about what the Mortgage is, how and where to make it.

Purchasing schemes for a mortgage with credit for available housing

Before choosing one of the proposed options for the acquisition of new housing as a credit to the old one, individuals need to study all the schemes carefully. It should be calculated which option would be less costly and risky to avoid possible problems in the future.

Self-selling break

The buyer finds the developer, explores all the options they have proposed, then enters into a contract; he will either have to pay the full amount for the apartment in the new building or make an initial contribution for the housing under construction.

The principle of this scheme is that the client is himself responsible for the realization of the real estate property, and that the proceeds will naturally not be sufficient to settle with the developer, which is why he receives the missing amount from the credit and financial institution.

Bail mortgage

This traditional scheme for the purchase of housing from the developer involves several stages:

1. The individual chooses a bank to cooperate, which offers mortgage programmes on the most favourable terms.
2. The applicant for the loan is sent to a financial institution and receives a list of the documents that he or she needs to be provided for the purpose of signing the contract.
3. If the client is able to collect the required papers and also has a personal estate that he can deposit on bail, the bank will be in possession of a mortgage and consent to transfer the loan will be obtained.
4. An agreement is being signed with the developer.
5. The bank transfers money for an apartment in a new building.
6. Once the facility is put into operation, the buyer will be able to repair and settle in the apartment.
7. For a number of years, the bank will pay monthly payments to the bank until the debt is paid in full. It should be noted that interest and other bank charges received from the borrower have been cancelled initially, and the mortgage is reduced in the last instance. If it is possible, the customer may close his loan in advance by paying the remaining amount of the debt, in which case the bank is required to perform the recalculation.

As long as the borrower's property is in a bank pledge, he will not be able to do any legal action with it, and only some banks are now offering Russian citizens a mortgage on an apartment in return for the available housing.

The developer buys the apartment.

Large construction companies have the means to purchase secondary housing from their customers with a discount, while former owners of the purchased properties have the right to claim housing in new buildings.

It is worth noting that the process of evaluating such housing varies from one company to another, but in most cases the amount of the discount varies from 10.0 per cent to 20.0 per cent in the case of a buy-back.

In the future, the developer is self-employed, thus returning the money spent with a fairly decent margin.

Apartment booking and sale

A natural person applies to a company that is a developer, selects a real estate property and signs an agreement for the sale of a secondary dwelling in his/her ownership, which is usually managed by a real estate firm that works closely with the developer, and can be assigned to a full-time staff member who is a specialist in this area.

It is essential to ensure that secondary property is properly valued; if a natural person doubts the estimated value expressed by the developer ' s representative, he or she may insist on engaging a professional outsider.

It is worth noting that, under the terms of the agreement signed with the developer, the owner of the property must sell it within a specified time frame, usually for a period of not more than three months, since this is the best time limit for the sale of the dwelling.

When signing an agreement with the developer, reservations are made for the same time period in the new structure, which may be at any stage of construction or has already been put into operation.

If a person cannot sell a secondary dwelling, his reservation will burn down and be handed over to other people.

There will be a price fixed by the armor (it cannot be changed even if the developer has a good reason for doing so).

Living in an apartment before giving up the house

If this form of transaction is chosen, the parties will have to enter into three types of agreement:

1. The first contract is for the purchase of an apartment in a new building from the developer, and it is stated that the developer gives the customer a deferred payment until the property is put into service.
2. A second agreement is drawn up for the realization of a secondary dwelling owned by the client, which specifies all matters relating to the legal and physical release of the dwelling, and must be in full conformity with the dates specified in the first document.
3. A third contract is for the rental of a secondary dwelling for a period to be given by the developer to the client for his legal and physical release; if the parties do not wish to enter into a separate agreement, they may prescribe all the issues relating to the lease in the second document.

The scheme provides for such nuances:

1. The client selects an apartment in a new building and signs a purchase contract with the developer.
2. In parallel, he gives the developer his secondary real estate under a sales contract.
3. The developer allows the client to live in his old apartment under the terms of his lease until the site under construction is put into operation.

Netting-off scheme of pros and cons

In theory, the netting system for an apartment purchased in a new building provides for a quick sale by a buyer of his own home, for which money is used to pay for the purchase; in practice, this method of calculation is very rare, as most citizens who are willing to sign a contract with the developer lack their own real estate.

The benefits of a netting system can only be attributed to the ability to obtain money for the purchase of new housing as quickly as possible and not to overpay mortgage interest to banks.

The seller of a secondary dwelling and the buyer of the property in the new structure must resolve the issue not only of temporary residence but also of propiska before the developers are put into operation.

It should be borne in mind, however, that the construction industry is very often moving, which may lead to an increase in the length of tenure.

What's the best option?

The most common scheme is the sale of its own property and the purchase of an apartment in a new building for the money it has earned.

If they're missing, you can get a cash loan from the bank, and you can arrange a breakout with the developer.

But in planning such a large financial transaction, as well as borrowing, an individual must actually assess his or her capabilities.

For many years, he has to bear the heavy burden of credit or distribution, as well as the running costs, the lion part of which will be rent for rent, and the client must have confidence that the developer will not unilaterally change the terms of the agreement or increase the cost of the renovation.

If a person seeks to minimize the risks involved, he should buy a property in a new building that is not yet under construction, in which case the developer will not set a cloud price, and the money earned for the personal housing sold will be sufficient to make a full settlement.

Risks of such schemes

The main risk is to increase the cost of the facility under construction during the period of time when the buyer of the dwelling is searching for its secondary accommodation. If an advance is made for such a facility, there is a risk of loss of funds.

The problem of underestimation of the value of the dwelling

In most cases, units of real estate companies carry out evaluations of the properties provided for the purchase, and their employees use an analog method to compare similar apartments in a given area; after leaving the client ' s address, their real estate is examined.

The evaluator may deliberately understate the cost of the facility by emphasizing any defects, followed by a ransom company offering the owner an amount that is slightly lower than the estimated value. Each company ' s discount size is set on a case-by-case basis and may be up to 25.0 per cent.

Attention! If a person wishes to obtain the best possible assessment of his or her real estate, he or she must insist that this procedure be carried out by professionals working in specialized private or public agencies.

Housing requirements under set-off

Each construction company, acting as a developer, claims real estate properties that customers will provide on credit, as follows:

1. The credit shall be applied to any real property to which the customer has issued a right-setting document.
2. The objects must be legally and physically free, or their owners can release them in record time.
3. Real estate should not be illegally remodeled.
4. The objects must be owned by their owner for at least three years.
5. Some developers, or ransom companies, require that real estate be located in prestigious cities or areas.

We're gonna wait for your questions, and we're gonna appreciate the job evaluation, the barks and the reposters, and you're gonna want to know what's better than a mortgage or a breakout from a developer.

You'll always be in touch with our mortgage lawyer, so I want you to make an appointment with him for a free consultation in a special form, and he'll help you solve your mortgage issues and your housing documents.

You can buy a net apartment in Moscow in 33 new buildings.

Image source: Laurie Photo Bank

Because of old real estate when buying housing in a new building, it has long become the usual way to improve housing conditions.

To date, 10 per cent of buyers have used this option to purchase apartments in the new buildings, and specialists in the Metroum Group have counted.

The company's experts analysed the market and found out where in Moscow (both in the old borders and in TINAO) today it is possible to change the old dwelling to a new one in a single operation.

According to experts, the trade-in on the real estate market is different from the same option offered when selling cars. In the case of a car, the client sells his old vehicle to a car and leaves in a new car.

It's harder with apartments: the agency can buy an apartment from a client immediately, but then it's gonna have to accept a very large discount, up to 40%, so it's very rare.

Much more often, more profitable ways are used, as described in the "Metrium Group".

Not all mutual accounts are equally useful.

The following types of trade-in are now common in real estate agencies:

Figure 1: The real estate agency accepts the client's old apartment for sale, while at the same time booking for him an apartment in a new building for a month. The cost of the new apartment is recorded for that time. In order to speed up the sale of the dwelling and meet the reservation deadline, the client will also have to agree to a discount, but only a small one.

Figure 2: The apartment in the new building is booked for an indefinite period of time, without fixing the value, which makes it possible not to rush the sale of the old dwelling and sell it as much as possible, but it is worth remembering that during this time the price tag for the apartment in the new building will also grow.

Figure 3: The most profitable and successful way to combine the advantages of the previous two is to book a flat in a new building with a fixed price of up to three months.

This time is guaranteed to allow the agency to implement the old client's apartment without discount, but this scheme is very rarely proposed, as the Metroum Group experts point out.

In particular, it can now be found at the New Vatutinki VC.

TOP-3 of the most accessible apartmentstrade-in

At the top of the "old" Moscow budget proposals, which can be bought by trade-in, is the northern region, with prices from3.39 million roublesHe's being followed by SREDA with apartments from3.57 million roubles. In third place, the "Peter I" VC with apartments from the U.S.3.65 million roubles.

In New Moscow, the most affordable flats that can be bought with old housing are located at Borysogliebski, the cost of which begins with:1.98 million roubles. Just above the price tag at the Sports Quarter......................................................................2.26 million roubles. The third place is the Prima Park LC with apartments from2.42 million roubles.

Only for projects on the finish line

The purchase of a trade-in flat is not always appropriate, notes the manager of the Metroum Group company, Maria Litenetska.

For example, if the project is still 1.5 to 2 years to go into operation, after the sale of the old apartment, it will be necessary to move to a rented dwelling, and the cost of renting the apartment may exceed the cost of buying a new building at an early stage.

Therefore, it is best to buy trade-in apartments in pre-existing projects or in new buildings where two to three months remain before the house is put into service.

Apartment in set-off: problems of the scheme

Sign on to us:

13.11.2014 | 00:00 17211

Realtors estimate that between 10 and 30 per cent of primary market dwellings are purchased after the sale of available real estate, knowing that developers have for five years been rolling out a set-off (trade-in) scheme, but the product is still far from perfect.

The first step of the real estate owner, the trade-in housing issue, should be to find a developer, because there is little difference in the range of participants in the construction market who are willing to "exchange" the existing housing for a new one, and there is little difference in the size of their programmes.

Double relationships

Let's assume that the stars are coming together in the right way and that the desired object is being built by a clean-up company, and at this stage it is necessary to get as much insight as possible into the program's conditions.

"There are virtually no net credit schemes in Petersburg when a developer pays for a new apartment to sell an old customer's dwelling.

There are exceptions to this rule: for example, O2 Development has set up a special unit for the realization of honorary housing, but in most cases this task is transferred to partner real estate agencies; the client has to enter into a contractual relationship with two legal entities – the developer and the real estate company.

How do you spend your mother's capital on a new building? Many eligible families want to send it to buy housing in a new building. The BN has prepared a step-by-step instruction, >> In practice, this is done as follows. By making sure that there is a suitable apartment in a new building and by agreeing with the manager on pre-booking, the person refers to one of the real estate agencies recommended by the construction company. It sends an evaluator who must give an opinion on the market value of the dwelling being sold. The evaluation is prepared promptly, within three to five days, this service is most often free of charge for a potential client.

If the parties agree on the price, there comes the time of signing the documents. The first contract, booking, is with a construction company for three months. This is the most common option, but in individual companies, the apartment is booked for one and five to seven months.

For this period, the selected facility is set at a fixed price for the buyer at the time of the agreement. It is usually higher than the one-time payment or mortgage. However, in some cases, interesting preferences are offered to buyers. For example, Kivennapa has extended all current stocks to trade-in, including a 30 per cent discount on the Townhouses. UK Building Trust provides a discount of up to 5 per cent on the purchased facility, but only if the housing sold is also located in one of the housing complexes of the developer.

At this stage, the client is expected to spend a great deal of money, with an initial contribution of 10 to 20 per cent of the value of the property being purchased being a mandatory condition for entering into a booking agreement.

Many developers value their "long - suffering" rather expensive – they charge the booking commission, which is either a fixed sum of 20 to 25,000 rubles or 1 to 2 per cent of the value of the property purchased.

If, for some reason, the transaction has failed, the client will not normally recover the amount.

Developers are willing to sell large-area multi-room apartments, townships and cottages mainly under trade-in contracts.

The most well-formulated contracts also specify the minimum price of the sale and the duration of the site's exposure, followed by the reduction of the "price". The commissions amount to 3.5-4 per cent, usually paid by the seller, but in exceptional cases the developer may bear these costs.

We have, however, found only two examples of "altruism", as demonstrated by North City (Holding RBI) and Lenstreitest.

Once the buyer for the flat has been found and the sale procedure has been completed, you can go to the developer and sign the equity contract; the remaining difference can be paid in instalments or mortgages.

Lots of downsides.

A simple and clear scheme that saves the owner of real estate from unnecessary trouble, however, is not particularly popular. "In general, credit deals are isolated and represent no more than 4% of total sales," states Nikolai Citizen.

This is not surprising – in the peterburg market practice of setting aside apartments too many negatives – first, not all facilities can be purchased under the trade-in scheme.

The developers are not prepared to wait three months for the most liquid facilities, small apartments located in houses with a good location and sold at an attractive price, and the builders are willing to set aside housing when they are experiencing problems in the realization of the real estate under construction.

These are either three-room and multi-room flats that are sold rather slowly, or unsold housing units that few people want to go to, or a comfort-class and higher house that is not sold at the most affordable prices.

"Purchasers usually meet buyers who have not been able to sell their housing in three months, but only when the delay does not exceed seven days.

In order to extend the reservation contract, it is necessary to write a statement to the developer indicating the reasons for the delay, as well as to provide a certificate that the documents for the sold apartment are registered in Rosreestre," explains Director Julia Barahtin of the A.N. Becar.

A seller who is forced to sell an apartment in the short term specified in the booking contract is at risk of losing 5-7% of its market value

The time-limited realtors are trying to convince the real estate owner to lower the price, the object is often sold with a 5 to 7 per cent discount to market value, and the big question is whether the gains from fixing the price of an apartment in a new building will cover the losses that are inevitable when the housing is sold in haste.

With your things on the way out!

The most important inconvenience in changing the only available housing to a new one is the need to move the entire carb to a rental apartment until the end of the construction of the house; market participants have tried several times to solve this problem in order to increase the popularity of the rent-for-pay scheme.

Three years ago, Chiefstray SPb, together with two banks, launched a special mortgage programme, under which a loan for the purchase of an apartment in the Northern Valley was granted on a mortgage basis, and after the house was put into service, the old estate was sold and the loan expired ahead of schedule, but because of the high cost of the loan, the product was not in demand.

There have been several attempts to master the classic trade-in – to buy an old apartment for a developer or realtor and rent it to a former owner down to the housewarming – but they have also failed.

But in order to cover the costs and risks of such activities, the discount must be at least 10% of the market value of the facility. The initiative has broken down about the reluctance of real estate owners to give up the price," says the general director of Maxim Yeltsov's First Mortgage Agency.

I mean, a man who sells an apartment can safely wait for the construction of his new home, but it's not entirely protective of the need to pack things immediately. The lease agreement is only for a year, with the possibility of further extension, and what happens in a year is impossible to predict.

The trade-in model attracts a buyer in a growing market when he is in a hurry to secure the product at a better price. On a falling and even stagnating – rapid growth is not feared. On the contrary, sellers are more resourceful at times of declining demand. It can be assumed that in the coming year, two or two of the sales technologies under the "Back-in" scheme will improve.

Text: Elena Denisenko Collage: Tatiana Voronina

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What's netting when you buy it?

A mutual account is understood to mean a legal and financial transaction where, at the expense of payment for an apartment purchased in a new building, an existing dwelling is transferred when it is purchased.

The parties to the transaction are the parties to the transaction.:

• seller;
• The buyer is the owner of the mortgage;
• The broker is a developer or a real estate company.

The netting is a scheme that uses real estate as a substitute for money in a property transaction.

There was a market for the sale of vehicles, where it proved to be an effective tool offering certain advantages to both sides, and on this basis it began to be tested in the real estate market, where it is increasingly recognized.

Benefits and disadvantages

This property transaction is considered to be a sale, although there are significant signs of an exchange with an additional payment, but if the exchange determines the relevant value of each object, then the valuation is based on the residual principle. This identity results in the pros and cons of this method of calculation.The advantages of a sales transaction include::

1. Reducing the cost of the new apartment;
2. Reduction of the time frame for its implementation;
3. The company ' s supervision of the transaction by the intermediary;
4. The package of services offered by the company in the transaction;
5. reservation of the selected dwelling for the duration of the old sale.

The main significant drawback is a rough estimate of the home, a buy-in at the lowest cost, and the next is the need to find a place to live before the completion of the renovation.

The value of the accommodation involved in the transaction is at least 10-15% lower than the market value of the dwelling, and at short-term acquisition up to 30%.

Risks associated with equity participation in the construction of new construction:

• The developer may fail;
• The Administration will impose sanctions for violations of building regulations;
• Construction will be frozen for other reasons;
• The company will turn out to be a grey scheme.

In this case, even after the termination of the contract and the return of the old premises, the company's client will be exposed to property risks, and if the apartment is sold to third parties, the money may burn down or return after an indefinite period of time, which the buyer will have to live in a rented apartment; smaller problems may be:

1. Increase in the price of new housing;
2. A decline in the quality of new construction;
3. Unauthorised reduction of metres;
4. Refusal by the developer to obtain title.

In addition, the risks that may arise from the buyer's own circumstances are taken into account if he or she is unable to find the balance of money to pay for the new apartment – sickness, job loss, etc.

For more information on how to protect yourself when buying a building from a developer, what questions to ask, and what documents to check, read here.

You can buy an apartment under a netting scheme in a number of ways.The first relates to the mediation of a real estate company or developer ' s manager; at the same time, for the same period:

• A contract for the sale of old dwellings;
• It's a temporary booking agreement for the apartment in the new building.

If you don't sell the apartment within a given period, the reservation in the new building burns down. This option is unpredictable for the result and the time frame for achieving it, but the object's evaluation is relatively adequate.

When dealing with an old dwelling, the money is not transferred to the client ' s hands, but is received in the account of the developer, with the issuance of a DDS or a sales contract if the new building has gone public.

Provision is made for the purchase of an old apartment by the developer immediately but at minimum costThe developer is awarded a contract for the sale of old dwellings and the DDU for the purchase of a new one; he puts the apartment on a tender, applying the fixed value obtained from it to the personal account of the developer, leaving the profits for the development of his business; since the money generated is not sufficient to obtain a new dwelling, the failure to obtain it from the buyer ' s personal funds is made up of proportionate parts, or it is made into a mortgage.

In the next case, the DUD is issued with a mortgage, a mortgage, an old home mortgage, and you can sell it with a burden and pay your debts, or you can pay off your mortgage with a consumer loan.

But there's nothing to prevent us from staying in an apartment like this until the new build, paying off the mortgage with monthly payments.

If these funds prove to be insufficient, the apartment is sold at the ready-up stage of the building, when the mortgage can be booked at the house in the new building.

Step instruction

How to buy an apartment if there is a dwelling, but there is no money? Despite the variety of options for using an inter-accounting mechanism for a real estate transaction, there is a common algorithm that should be used in making such a transaction.

A step-by-step instruction for the commission:

1. The buyer selects the developer ' s company and the apartment in the new building where the netting sale is applied.

   The real estate experts (managers) evaluate his apartment according to the company ' s standard.

2. If the proposed terms are acceptable, the parties shall sign the service contract for the sale of the dwelling.
3. Already at this stage, the buyer makes an advance which provides for the assignment of a fixed, non-changing cost of the premises in the new structure, and enters into a booking contract.
4. The customer ' s real estate is being traded for a buyer with whom to sign a sales contract and dispose of an honored dwelling. The money obtained from the transaction is received by the developer as a contribution to the housing in the new building. The buyer signs a DDU or a concession contract. If a sales contract is concluded, a mortgage is issued for an apartment in the new building or a consumer loan. If there are personal savings, the customer will pay the price difference without additional credit.
5. The contract is registered with the Rostreestra branch or the IFC.
6. Once the renovation is put into operation, the client gets a new apartment.
7. On the basis of the contract and the act of admission received, the property rights are registered.

   The transfer of rights can only be carried out by a developer who transfers apartments belonging to him prior to the transfer.

8. In Rosreestre, the new right holder receives an extract from the EGRN, which points to the right to take possession.

If the developer has refused to make the apartments, they must be processed through a court of law.A sales transaction in this case is a more convenient way of acquiring a dwelling in a new building than a DDU, since ownership is obtained immediately.

When transferring its old apartment to a company, it is required to attach to it a standard package of documents required for the transaction:

1. The right to establish and certify the dwelling;
2. The husband's permission is for those who are married;
3. Cadastral and technical passports;
4. A certificate of non-debt for rent;
5. Inventory certificate on the absence of arrest and encumbrances;
6. Trusts are for representatives.

A fee of 2,000 roubles shall be paid for the registration of the contractThe purchase of a new apartment by giving up an existing dwelling is very attractive, and if it weren't for one significant NO: the buyer cannot immediately leave the "sold" dwelling and move on to a new one.

The possibility of first buying an apartment in a new building and then selling an existing dwelling is now quite real, and the programmes by which developers implement such a scheme tend to be named after the apartment in set-off.

At the end of the procedure, ownership of the new dwelling is permitted for a purpose and, if it is not encumbered, for a property order.

Before choosing a new home for the old one, individuals need to study all the schemes..

A developer's client can hand over his apartment on a mutual basis so that the money he's earned can be involved in buying a new dwelling.

We've already realized that you have a particular problem.

Call, we'll decide:

Netting: an apartment in a new apartment for a secondary dwelling, features, stages and advantages of transactions

Changing an old apartment into a spacious apartment in a new building is the dream of many families, but the process of selling an old apartment and buying a new one is long and difficult, and it can greatly accelerate the purchase of a clean-up apartment – a simple scheme that allows us to exchange our dwelling for a new house.

A flat in a new building netting: benefits of an approach

Buying an apartment net is relatively simple. A client of a real estate agency selects suitable apartments in a new building, after which the agency's experts assess the old dwelling and put it on the market.

In order to speed up the process, an advertisement for a sold apartment is being launched with the full potential of the real estate company, while the selected apartment in the new building will be booked in the name of the client.

Once there is a buyer for an old dwelling, the customer will sign a sales contract and at the same time a contract for the purchase of an apartment in a new building. In some cases, the buyer has to pay a certain amount, either one-time or part-time.

Of course, you can try to do the whole operation without agency involvement, but there's so little that you can do without a buyer's ad for months, and sometimes for years, and no company will keep an apartment reservation in the new building for so long, and it's not easy to process all the paperwork you need, so it's still not necessary without the help of lawyers.

The benefits of the "netting" scheme are obvious – an agency interested in a quick transaction is actively looking for a buyer and helping a client with all the legal formalities, accompanying the transaction from start to finish. This scheme is more profitable than mortgages, as the buyer of an apartment in a new building does not have to pay interest on its own mortgage.

Netting or trading?

The purchase of a netting apartment is very similar to the exchange – a once-distributed scheme – and today it is spoken of when a transaction is made between individuals, two owners of apartments.

If the transaction involves a physical (owner of an old apartment) and a legal (builder) person, it is commonly referred to as the netting of dwellings; today, 90 per cent of all exchange transactions in the real estate market involve new structures.

Of course, it's possible to try to trade one apartment on the secondary market for another, but the success of such an event will be close to zero – a chance that the owner of the apartment you're looking at would want to exchange it for yours, very little.

Today, in the real estate market, "trade-in" and netting are often referred to as the same type of transaction, which creates some confusion. In fact, there is a difference and it is significant. Trade in is an accelerated buy-back of an old apartment by an agency at a slightly reduced price. In practice, this scheme is rarely used, in most cases the agency sells an apartment for sale.

Conditions and procedures for netting-type transactions

The netting process consists of several stages.

1. The agency's client selects an apartment in a new building from among the options offered by the agency. Clearly, it is better to go to large agencies that work with dozens of developers and offer many apartments in new buildings for sale.
2. The agency's specialists are conducting an independent expert assessment of old housing and starting a advertising company to sell it. The more and more serious the agency, the greater its promotional capacity – and, consequently, the faster a buyer is found.
3. The client is booking a selected apartment in an attractive new building for the entire sale of the old apartment.
4. When the buyer is found, the contract for the sale of the old apartment and the contract for the purchase of the apartment in the new building are signed at the same time.

Any property to which the client has a legal right will be suitable for such a transaction, and the key is to be sober in assessing his or her capacity and the cost of his or her housing.

In netting, companies impose certain requirements on old apartments – for example, in the capital most often for netting, apartments owned for more than three years are accepted, legally and physically free – i.e., the owners must be prepared to release the dwelling within a couple of weeks after the agreement has been reached.

In general, for netting transactions, highly liquid housing in relatively new houses (2000's) and in good condition is much more readily accepted; however, the stringency of claims depends on the developer – some offer very unburdenable conditions.

It matters!

Apartments available for purchase on netting are usually offered in facilities with an unfinished construction cycle, which means that the buyer will have to wait for the settlement and be prepared to change the date of delivery of the house; therefore, the issue of propiska or temporary registration should be resolved in advance.

Buying an apartment in a new netting house with the Housing Account: pros and cons

Azbuka Gililla is one of the largest real estate agencies in Moscow and Moscow, a company founded in 1997 that offers a full range of real estate services and successfully addresses any, even the most unconventional, challenges in the real estate market.

For those who wish to improve their living conditions, a special programme entitled "Recovery for the new building" would be appropriate.

Under this programme, customers of Azbuki Housing may exchange a secondary apartment in Moscow or Pomoskovy for a new house or an apartment in a new building for another house (e.g. a larger area or other stage of construction) on favourable terms.

The company works with a huge number of developers, so the agency's clients aren't limited in their choices.

One of the shortcomings of buying a netting apartment with the Housing Account is that not all the new buildings in Moscow and Podmoskovia are involved in the Agency's program, but it is worth noting that this realtor has one of the most extensive options, and it is certainly possible to choose a suitable option.

Examples of successful transactions

The purchase of a netting dwelling has not yet become a common practice for the Azbuka Housing, but the popularity of the system is increasing, and several successful deals have already been made.

The Baltic Bank is near...

The client requested that the 2-bed apartment, 56 square metres, in Moscow, be sold at a cost of 12,800,000 roubles in freedom and that the 2-room apartment, 63 square metres in the new Baltic Quarter, with a fenced area protected by parking and underground parking, be purchased at a cost of 12,400,000 roubles.

A contract was entered into with the client for the sale of his apartment on the street of Liberty, after which the agency booked a customer-selected apartment at the Baltic Quarter with a price fixed for the time of the sale of the old apartment.

Botovo Park Novels

In a similar scheme, a 2-room apartment was sold in the city of Iron Road, Mr. South Kucino, with an area of 50 square metres and a value of 5,100,000 rubles. With the money received, the agency's client purchased a 2-bed apartment with a pre-book of Housing, with a cost of 4,780,000 roubles in the new Butovo Park housing complex.

Multiply by two.

A 3-bed apartment on the street of Nelidov, with an area of 65 square metres and a value of 11,500,000 rubles, was sold by Azbuki Gilya, immediately after the title of the new owner was issued, the agency's client purchased two 2-bed apartments with an area of 64 square metres and a cost of 5,000,000 rubles at Putilkovo.

Despite some of the limitations imposed by the netting scheme, it remains one of the fastest, most convenient and least risky ways to improve housing conditions; even in comparison with the mortgage, the netting is easier and much cheaper.