Buying a country house is much more profitable than buying an apartment. Private cottage gives the opportunity to live in an individual area with a large mansion and a spacious backyard. In addition, the cost of modern cottages is minimal and often even lower than the prices for residential areas in the city. Especially popular are mansions in the structure of cottage settlements – in micro districts with their own infrastructure and utilities. One of the advantages of suburban real estate is that it is much easier to take a mortgage to build a private house. When buying an apartment, you always have to deal with credit limits. If it is a mortgage for a cottage, then the restrictions are removed, the applicant can expect a really huge amount.
Timing and rates of mortgages for the construction of a private house
Mortgage for the construction of a house has favorable conditions for cooperation with the bank. The borrower gets an opportunity to take out a loan for up to 30 years, which is quite enough for easy repayment of debt without a serious financial burden. At the same time, the average rate varies from 12 to 14%. The indicators are comparable with the apartments, but in the end the borrower does not receive a close living space of economy class, but a full-fledged mansion.
Bets on objects under construction are always minimal and save considerable money. The loan amount for a mortgage for the construction of a house in the Savings Bank can be up to 200% of the total value of the property. In most cases, it is about 30 million rubles. These funds are sufficient even for the construction of an elite multi-story cottage, not to mention the usual cottage or a standard house made of laminated veneer lumber.
He current construction companies use budgetary frame technologies in their work, which allow building the building with minimal investments, but in the proper quality. The borrower will have money not only to build the mansion, but also to equip the backyard. On the land plot can be located business premises, baths and car boxes, and various elements of landscape design, the cost of which will also be included in the total loan amount.
Conditions for repaying mortgages for the construction of a house
If, when buying an apartment, the initial installment becomes an obligatory condition for lending, then for a mortgage to build a house, the demand is lifted. Even without the existence of personal savings, it is easy to get a large amount for a period of several decades and for this you do not need to have a high-paying job.
At the same time, it is possible to use maternity capital, which will significantly reduce the total amount of debt. To take a mortgage for the construction of a house, you can either exclusively for the period of construction of the building, or for the entire period of its operation. The second option is more profitable. In this situation, after the construction of the cottage is completed, the landlord will have the opportunity to re-arrange the mortgage and pay the money at lower interest rates.
The minimum risks of mortgages for building a house
Mortgage to buy an apartment has a lot of reefs. High interest rates, as well as a complicated procedure for issuing credit, creates many problems for borrowers. In favor of country houses speak mainly general economic trends and features of the market. Already for many years the sphere of suburban real estate is the most priority. The construction of cottages is conducted everywhere, including even remote provincial regions. Active development has caused the emergence of high demand. How to buy and sell a house will not be difficult.
The borrower who has formalized the mortgage for the construction of the house, practically does not have any risks. In case of problems with payments on mortgages, a country mansion can be sold. And the sale will be profitable. A cottage under construction or built is easy to sell along with a loan that will be reissued to a new owner. In this situation, the cooperating parties do not lose anything. The bank receives stable payments, and the “former” borrower remains even with a plus from a profitable sale.
Advantageous policy of mortgage lending
Attention should also be paid to the credit policy of banks. Both state and commercial organizations are forced to work in extreme conditions. The number of banks is quite large, which creates ideal conditions for the development of intense competition. Commercial organizations for competing with the state are forced to make significant concessions. To attract customers, companies offer minimum interest rates, comfortable repayment terms and credit debts. The requirements for a mortgage loan are reduced, which only increases the demand for suburban real estate.
Alternative Mortgage Options for Building a House
If the mortgage for the construction of a residential house seems burdensome (not everyone is willing to pay monthly amounts for 30 years), you can take alternative options for purchasing a home in the property. A loan secured by real estate is a vivid example. Its essence lies in the fact that bail is already taken from the borrower’s property on bail. The loan amount at these rates reaches 70% of the total cost of an apartment or a private house. The main advantage of a loan secured by real estate is the simplicity of registration. The applicant will not have to collect dozens of certificates and documents. Banks offer low interest rates, which eliminates the risk of high overpayment. With a mortgage, overpayment can make up the double cost of an object. However, in case of violation of the terms of the contract, the borrower can not only lose money.