How to choose an apartment in new buildings in Tashkent?
With the increase of construction companies and new buildings in the city and the emergence of a large selection of residential complexes, there are more and more questions related to the purchase of housing, and choosing an apartment in the city is becoming increasingly difficult. In this article, we will discuss a few details that should be taken into account when intending to buy an apartment in new buildings in Tashkent, which will greatly facilitate your choice of future housing.
Pay attention to infrastructure
One of the criteria to be considered when buying an apartment in new buildings is suitable social and transportation infrastructure. Today we try to pay special attention to these moments, building on the territory of residential complexes schools, shopping centers, recreation and entertainment areas, parking lots. As for transportation, based on your place of work or the place of study of your children, choose new buildings in the most convenient areas for you, closer to the road, bus stops or subway. This will make your life much easier, and in the future, you will say thank you!
Research the developer
An equally important criterion to which you should devote time and attention is the experience and reputation of the developer. To familiarize yourself with this or that company, it is enough to allocate time for reconnaissance in the media. Today, try to do advertising and provide as much information as possible to the population about residential complexes, their advantages and conditions. Visit the official website, where the years of activity and successful projects are indicated or find out all the necessary information on our site.
Evaluate the family budget
Before you decide to buy an apartment in a new building, you should seriously consider calculating and assessing your financial possibilities. Prices for new buildings vary considerably today for various factors, including – the class of the new building, its location in the city (new buildings in central areas usually offer higher prices), as well as the floor of the apartment and its area, the number of rooms and the state of finishing.
Therefore, if you summarize in advance how much you are willing to spend to buy an apartment in new buildings, it will help you avoid debt pits, a lot of unexpected expenses, as well as faster to decide on the choice of housing, as you can immediately filter out unsuitable options at the stage of consideration. If at the moment there is no possibility to pay a hundred percent for an apartment in a new building, we offer you to consider the option of buying an apartment in installments or under mortgage.
Installment or mortgage?
Installment payment as one of the methods of buying housing today compared to a mortgage has both its advantages and disadvantages, let’s look at a few of them:
The first plus of buying an apartment in installments is that the developer offer it without a down payment, which makes the purchase of an apartment in new buildings in Tashkent a much more realistic process, because in this case to buy it will be able to even a person who does not have a large amount of money at the first stage of the purchase.
Also, you will not have to overpay a percentage of the total cost, and the probability of a more competent distribution of finances and monthly expenses will increase several times. But there are disadvantages and multiple risks that should certainly be taken into account. In case of non-payment of the amount put forward by the developer in due time, you can lose the apartment and the money paid. Also, the property is not registered on you until you pay the full amount. In Tashkent, an apartment in installments is issued for a maximum of 7-10 years, compared to a mortgage is much less, but as already mentioned, you will save on lower interest rates.
Difference between a mortgage and a loan
Many people have the misconception that selling apartments with a mortgage is a kind of long-term loan, which must be paid at high interest rates. But this is not the case, the key differences are many: In terms of % rate you will get much more favorable conditions: the rate is much lower than any loan program. This will lower the overpayment rate and increase the chance of early repayment.
Long-term repayment scheme: The mortgage is paid for up to 15 years, which significantly reduces the amount of monthly payments. The family budget will not be so much affected by financial costs. The collateral is the object of the mortgage, while any consumer loan is issued under the borrowers’ existing housing, which may not feel very comfortable. Buying an apartment mortgage in Tashkent, you will know that you are paying the mortgage for the apartment in which you live, gradually reducing the remaining amount. For many people, this is the optimal choice in terms of comfort and peace of mind.
The transaction is as safe as possible! Mortgage real estate in Tashkent undergoes a comprehensive assessment by banking services and insurance companies. The purity of the contract from the legal side ensures a high percentage of safety of the transaction: banks, insurers, borrowers.
We would like to draw attention to an important point! When choosing a mortgage, the buyer does not “tighten the belt” tight and does not limit himself literally in everything, as this type of purchase – not direct lending, when people are forced to pay the entire amount for up to 5 years. Borrowers plan individual incomes, having a long-term perspective and at the same time, live in their apartment, without spending huge sums of money on the rent.
Peculiarities of the mortgage loan
Mortgage loan in Tashkent, allocated to an individual, is a loan for the purchase of square meters in an apartment building. The interest rate is determined in proportion to the initial amount, the payment of which is included in the total cost of the apartment. The term of lending for the purchase of housing can be up to 15 years, it depends on the level of solvency of borrowers, interest rates and grace periods for repayment of principal. At the same time, the main requirements for a potential borrower are as follows:
Advantages of mortgages:
The main advantage is the possibility of purchasing without having the necessary final sum on hand. For those who do not accept rent or live in a small living space with other family members, a mortgage loan is the only option when it is not possible to save the entire amount. With the help of a mortgage you can get your own apartment and live there, paying a mortgage payment every month.
By taking out a mortgage, the borrower becomes a kind of investor. The cost of real estate on the market is growing every year. The loan can be closed early, and then sell the apartment at a higher cost, while earning a decent amount. And it is not necessarily early repayment, you can close debts and exactly on time. The possibility of selling for a higher value will still be.
In a mortgaged apartment, you can do any repairs, remodeling and everything that fits within the framework of what is permitted and legal. There are government mortgage support programs. They allow you to get a loan on preferential terms and save significantly on interest.
Immediately after the execution of the mortgage transaction, the borrower becomes the owner of the housing, he has the right to live in the acquired living space, to rent it out, to register relatives on it. The only thing you can not do with mortgage real estate – is to sell, exchange or bequeath. All this is available only after full repayment of the mortgage loan.
Almost all banks offer such a service as early repayment of the mortgage. If there is an opportunity and means, the loan can be repaid early, and the interest will be many times less. The advantages of the mortgage is that it is given for a long period of time, so the amount of the monthly payment may not be so burdensome, which allows you not to experience serious financial difficulties. The bank before granting a mortgage, carefully checks the selected housing on all parameters. The borrower can be confident in the legal purity of the transaction and the housing itself.
These were the pluses of mortgage lending, and there are many of them. But before signing the contract, the borrower should know that there are also disadvantages of mortgage lending:
Large overpayments. If the real estate is taken for a long period of time, the amount of overpayments can be equal to two or even three times the cost of living space. But taking into account the annual inflation at the end of the loan term overpayment on the mortgage will not be so large.
The borrower, when applying for a mortgage loan, pays not only the down payment, there are other costs, such as insurance of the housing purchased at the expense of the mortgage and notary costs for registration of the mortgage.
The real estate that is purchased serves as collateral for the bank in case the borrower stops paying the debt. If this happens, the bank will simply seize the property and sell it to repay the remaining loan amount. Therefore, there is always a chance of losing the property in case of non-payment.
Mortgaged property cannot be sold or exchanged until the entire debt has been paid off.
The bank has strict requirements not only for the property, but also for the borrower. He undergoes a bank check, collects a lot of documents, among which the main one is the amount of official salary confirmed by the employer. It is not a fact that the bank will approve the application. The main reasons for refusal are a bad credit history and low salary.
The down payment can be a snag in the mortgage, as not everyone has the opportunity to save even 30% of the cost of housing. Since a mortgage has both its pros and cons, it is worth knowing the situations when this option will be really reasonable and favorable for you, and when not. If the borrower is responsible and realizes that he needs to give 1/3 or even more of his personal income or family income every month in strictly specified numbers, and he is ready for this, then the mortgage can be issued. For non-serious people, this option is definitely not suitable.
We understand that it is difficult to accumulate the amount, money depreciates, the cost of real estate is growing. And not everyone knows how to save when there are so many temptations and advertising around. A person with a stable good income is sometimes easier to take out a loan, and make every month a large amount, then the mortgage will be paid off faster and move into your own home can be immediately after registration. And to pay rent for rented housing and save for your own – it is morally and physically very hard. Each borrower must understand for himself that for him the mortgage.
For someone it is “bondage for life”, and for someone a good chance to buy their own home. In both cases, you need to preliminarily study the advantages and disadvantages of mortgage lending, choose the right bank and carefully familiarize yourself with the terms of the contract, reading the letters in small print and footnotes under the asterisk. Only then should you make a decision.
Age: 18 to 50 years old.
It is obligatory to have a permanent income, which is sufficient for monthly payments, repayment of interest rate and principal debt on loans.
Debt load indicators (calculated by the lender according to a special algorithm) should be no higher than 70%. The primary condition – there should be no overdue payments on other credit programs.
Citizens of Uzbekistan successfully apply for mortgages in banks such as Hamkorbank, Asaka, Kapitalbank, Ipak Yuli and other large and proven banks.
At the same time, the state pays attention to supporting vulnerable people. This is a relatively new mechanism for improving housing conditions, it is realized by subsidies and compensations for the payment of down payments and interest on the loan. Migrant workers, orphans, young families and people in difficult social situations are entitled to subsidies. To summarize, let us say that it is the mortgage for the purchase of apartments is the most acceptable option for those who want to settle in the capital of Uzbekistan for a long time. But in order for the purchase to fully justify expectations, we advise you to take seriously the choice of housing.
Where it is cheaper to buy an apartment in Tashkent?
According to the Institute of Forecasting it was possible to find out in which district it is cheaper to buy apartments in the capital of Uzbekistan. It turned out that the cheapest apartments are in Sergeli and Bektemir. For 6 months in Tashkent up to 50 thousand agreements on purchase and sale were concluded. The indicator is equal to 27% of the national share of such contracts. Last year, the indicator was equal to 48.3 thousand contracts. According to statistics, for the year the cost on average increased by 10-12%, and for new buildings by 8.3%.
High prices were recorded in 6 districts at once: Mirabad, Yakkasaray, Shaykhantahur, Mirzo-Ulugbek, Chilanzar and Yunusabad districts. The average cost of 1 sq. m. in these districts amounted to – $957.2, and in the secondary market – $888.3.
How not to miss out on an apartment and what mistakes are made?
«Let’s hold off»
This is a position that has misled a great many people over the past few decades. For example, there are many people who have saved up $20,000, but the cheapest house (let’s say) costs $25,000 (recall that real estate purchases in Uzbekistan are mostly made in US dollars). They don’t want to take a loan, they don’t like the $25,000 house, they even look at it with disdain and dream of houses more expensive than $30,000. Losing starts with “hang on” and the intention to save the rest of the money. The trend is that home prices will rise; by the time $30,000 is collected, homes costing $25,000 will be selling for $35,000. The accumulated money loses value (inflation). Both time and money are lost.
The practical advice is as follows: If you have collected an acceptable portion of the house price, go ahead and take out a loan. Believe me, even if housing prices fall, you will not lose out. Because it is blessed with the income of a person who lives in his home, and you will quickly get rid of the debt. The main thing is that if you buy what you can, and save for the rest, you will never lose. That is, if you buy with all your money, it will be immeasurably easier to expand in the future than to buy from scratch.
«An apartment with no repairs, as long as it’s cheap»
This is what our compatriots like to say. For some reason they think that an unrepaired house will cost very cheap, and they will save a lot of money by repairing it themselves. They are shown a house with good repair, they say: “On the repair of this house was spent 5 thousand dollars, so the price is 40 thousand dollars”.
But you are looking for no renovation to win about 3 thousand. Once you buy a house like that, you can’t even renovate it for 5 thousand, and you’ll be busy for at least a quarter. For example, the rent for 3 months will be up to 600 dollars, and you will lose on this side too. But everything is useless.
Today, a complete repair of the apartment will cost a round sum. Reduce the cost of production can only through continuous repair of at least 3-4 or more apartments. Besides, if you get a master who does not do it regularly enough, he will make you nervous and spend too much. Therefore, we don’t recommend purposefully looking for an unrenovated house, thinking to get something out of this purchase by renovating it yourself. This is a difficult plan to implement.
«There will be those who are urgently selling»
That’s not going to happen. Believe me, no miracle will happen, and no one will sell a house with a market value of $30,000 for $20,000. On the contrary, the owner will think about whether to sell to you for 29,000 or not. The nineties are long gone into history, there are no more people who urgently sell houses and leave for Russia or other countries. In addition, there are now quite a few rich people who are willing to invest in real estate.
No matter how urgently the owner sells, he will never give not only for half the price, will not give up even a quarter. Even if his discount is up to 5%, for such an option will be a lot of competition. Because people have long realized that real estate is a good investment. While you come from somewhere, consult with relatives, go to collect the required number of friends and acquaintances, there will be a client with ready money and voila, the apartment is gone. Yes, and formalize the sale is now very easy. If you agree, you can formalize everything and become the owner of the house in an hour.
«Let’s think about it. We’re not buying potatoes»
There are buyers who should definitely consult an acquaintance who has “seen a lot”. But our people have a habit, when giving advice, of looking for flaws rather than seeking to close the deal. Instead of saying: “If you like it and you finally get what you’ve been dreaming of for so long, I like it too”, they start to discourage: “Isn’t it expensive, you shouldn’t hurry… And why on the outskirts, didn’t they find it closer to the center? I don’t care how you want…” and so on – thus discouraging the buyer. Spouses, relatives get together and consult, consult, consult… And houses find owners, while they come to an opinion.
«Prices will come down, look how many houses are being built»
In people’s imagination, there are too many houses being built, and sooner or later this will lead to a drop in prices. In fact, the reason why houses are being built is because of the high demand for housing. Uzbekistan is a country whose population has almost doubled over the years of independence. In addition, the national tradition of 2-3 brothers living in one yard is disappearing, now everyone wants to have their own dwelling.
Prices for construction materials are rising, inflation is increasing. Although many people do not want to admit it, the incomes of a larger stratum of the population are increasing. Entrepreneurship, cash flow from abroad is increasing. Everyone knows that a reliable investment in such times is housing.
It is true that the price of a product cannot rise forever, and real estate prices, among other things, may fall. But this can be attributed not to a decrease in demand for real estate, but to an economic downturn. In other words, when the price of a house falls, it becomes difficult to buy it for that price as well. This applies to those who put off buying a home and thereby reducing their chances.
If you have certain funds, if you have found a house that you like, don’t hesitate too long and buy. Many years of experience confirms that you should forge iron until it…
Checklist – «How to choose an apartment in new buildings in Tashkent?»
- Budget: Determine your budget in advance so that you know how much you are willing to spend on buying an apartment. Take into account not only the cost of the apartment itself, but also additional expenses such as agency fees, taxes and charges.
- Location: Decide in which neighborhood of Tashkent you would like to live. Take into account proximity to work, public transportation, stores, schools and other necessary infrastructures.
- Infrastructure and amenities: Research what amenities the new building offers, such as parking, elevators, security, sports fields or green spaces. Decide which of these are most important to you.
- Quality of the apartment: Pay attention to the quality of construction and materials used. Research the reputation of the developer and study reviews of past projects.
- Layout and dimensions of the apartment: Decide on the layout and size of the apartment you prefer. Take into account space requirements, number of rooms, kitchen and living areas.
- Legal aspects: before buying an apartment, make sure that the developer has all the necessary permits and official documents. Consult a lawyer or a real estate agency to check the sales contract and other legal aspects of the transaction.
- Site visit: If possible, visit the construction site and familiarize yourself with its condition. Pay attention to the quality of the construction work and the general atmosphere around it.
- Compare the options: Consider several apartments in different new buildings and compare them on various parameters – price, location, quality and general convenience.
- Obtaining professional advice: Ask a real estate agent or consultant for more practical advice on choosing an apartment.
Take your time in making your decision and do enough research before buying an apartment in a new building. This will help you choose the most suitable option that suits your needs and preferences.