The Cabinet of Ministers has permitted the State mortgage institution (SMI) to give apartments to lease. While we are talking only about the amendments to the Charter. But if the relevant Ministry and the government will take developed a methodology, already this year, some Ukrainians will benefit from preferential “loans”. The main differences from the mortgage – you do not need to pay the first payment, no security Deposit and at any moment you can return money paid. Moreover, officials expect that the monthly payment will be even less than the cost of renting an apartment. The website “Today” found out who and when will Ukraine be able to take advantage of the new program.
What is leasing and how it differs from mortgage
According to official data, in Ukraine more than 400 thousand families rented accommodation. The real figures are, I’m sure the realtor Maxim Baborak, can be several times higher. Many Ukrainians do not live at the residence, a contract for the lease and does not register it. To calculate such tenants official statistics can not, says the expert.
To raise funds for the purchase of square meters with the average salary is extremely difficult. A mortgage in Ukraine is one of the most expensive in Europe – around 20% per annum. Recently the Cabinet of Ministers has permitted the State mortgage institution to give apartments to lease.
In form, a lease is the same lease, says the lawyer Alexander Plakhotnik, only the rent is not in the pocket of the owner, and repays the cost of housing. Leasing SMI plans to issue for up to 20 years. During this time you can fully pay for housing and obtain a right of ownership.
Photo: archive
“Leasing does not involve collateral. In fact, you live in an apartment that does not belong to you. If it is a lease with a private company, then there can be risks. For example, this company can take the apartment for which you pay the loan. But if this is the state leases, the risks are minimized”, – said Alexander Plakhotnik.
“Leasing does not involve collateral. In fact, you live in an apartment that does not belong to you. If it is a lease with a private company, then there can be risks. For example, this company can take the apartment for which you pay the loan. But if this is the state leases, the risks are minimized”, – said Alexander Plakhotnik.
As told “Today” the State mortgage institution, the annual interest rate (the so-called “lease fee”) will increase to 15.3%. To pay the first payment is not necessary. For comparison, the average Ukrainian rate on mortgage loans over 20% per annum, the first payment will range from 30 to 50% of the cost of the apartment. The state “Oschadbank” offers its customers a mortgage at 23% per annum with maturities up to 15 years. Leasing can be issued for 20 years without the first payment.
Apartments for the program plans to purchase through the system ProZorro directly from developers. How many have to pay monthly to participants of the program, unknown at this time. First of all it depends on the purchase price and the term of the agreement, however, in the SMI hope to pay for leasing will have even less than the rent the same apartment. By the way, the capital cost of renting a Studio apartment can range 5-7 thousand hryvnia in the segment of “budget housing” (“Khrushchev,” not far from the metro station).
When and who will be able to use the program
The pilot project is scheduled to launch in Kiev this year. But use them only combatants. The list of participants of the program will be the relevant Ministry, and the apartments will buy from developers with a system ProZorro at public auction. SMI immediately buy apartments and put them fighters.
The next step if the government approves the methodology, apartments for state employees. This primarily law enforcement and the military. After – all remaining preferential category. We will note, according to article 47 of the Constitution, free housing provided for the citizens who need social protection. In fact, under this category fall a thousand people – orphans, disabled, large families, etc However apartments are only a few.
Photo: archive
“Next year we hope to be able to run the program for the rest. But, of course, in the first place is the waiting. According to the “morgenavisen” the rules are the citizens who need better housing conditions”, – told in the press service of the SMI.
“Next year we hope to be able to run the program for the rest. But, of course, in the first place is the waiting. According to the “morgenavisen” the rules are the citizens who need better housing conditions”, – told in the press service of the SMI.
Officials suggest: take advantage of the state leasing will be able to Ukrainians that do not fall under any preferential categories. However the turn comes to them only in the case that the securities market will develop steadily (SMI receives no government funding and attracts money from the market).
“While revenge is a project. Now adopted amendments to our Charter. We were given the right in addition to refinance mortgage loans and engage in leasing. We have developed a draft program to provide housing in the conditions of financial leasing. This project is subject to approval by the Cabinet and relevant ministries. The next stage is the adoption of the Cabinet resolution, which will determine the order of housing provision. Then you can talk specifically,” explained the State mortgage institution.
By the way, in developed countries, where the risks for banks less, and the rate of inflation can vary between one percent per year, mortgage can be taken at 3-5% per annum. So, in the US you can get a housing loan (called a mortgage) with a fixed rate of 3.72% per annum for 30 years. For example, a client who took a loan of 200 thousand dollars, the Bank in 15 years will receive 252 thousand dollars. In Ukraine, experts explain, in terms of devaluation and double-digit inflation to speak of “cheap” loans, that is not necessary.
As has informed earlier “Today”, according to international research Global House Price Index, the level of decline for the 2016 first in the world ranked Brazil and the second – Ukraine. This year, property prices fell another 2%. The real estate market is directly linked to purchasing power and state of the economy.
