After the increase by the Central Bank (CB) of the Russian Federation of the key rate when buying and selling housing, one should not give in to emotions, Sergey Zaitsev, sales director of the federal company Etazhi, told Izvestia on August 15. He gave some advice to buyers and sellers of real estate.
“In the case of a sale, [it is necessary] to evaluate: how urgently it is required to sell the property and for what purpose, in what period it is planned to use the funds received from the sale. When buying, assess the real need to buy new housing, income stability and the level of debt burden, ”the expert noted.
According to him, the current situation is beneficial for those buyers who purchase real estate with minimal borrowing: due to the fact that the owners currently feel a decrease in demand, they will actively bargain, which means that you can buy an apartment with a good discount. He called it a riskier option to buy an apartment at a discount on a mortgage at existing rates in order to refinance it in the future at a lower interest rate.
“If we talk about the primary market, preferential mortgage programs remain on it, but it must be taken into account that as rates for standard programs increase, those who are interested in buying a home here and now will begin to reorient themselves towards new buildings, which means that there are risks of rising prices in this segment and reducing the volume of available supply,” said Zaitsev.
He recommended in each case, for each property, to calculate the amount of monthly payments and the total amount of overpayment on the loan for the entire period that the borrower plans to use it. Discounts on ready-made housing and the absence of the need to invest in repairs and temporary rental of an apartment can significantly reduce the difference in real costs between the primary and secondary market.
“For those who have already received loan approval on the old terms, it makes sense to speed up the selection of real estate, since with such a sharp increase in the key rate, there is a risk of revising the application if the loan agreement is not signed,” Zaitsev added.