Namuna Development company offers clients a flexible installment schedule for apartments in NUR Residential Block. Each of the 12 types is provided from 6 to 24 months. With an initial payment of 20% to 50%, discounts of up to 20% are provided.
It is important to remember that the investment agreement takes into account all the wishes of the client, and by mutual consent it is possible to make changes to this document.
Buying a flat by instalments: pros, cons and risks
Buying housing in instalments is a method of payment for real estate with gradual payment. Recently, construction companies are increasingly providing such opportunities, but this is rarely found in the secondary market. It is supposed to pay an advance payment and subsequent partial additional payment of the remaining amount during a specific period, which is prescribed in the contract. The amount of monthly payments and their requirements can be individual. In most cases, this applies to a complex under construction. This option is favourable for those who are not yet able to use a mortgage loan or do not have the required capital to buy at once. However, before doing so, it is worth familiarising yourself with the terms and conditions and assessing your options.
What is instalment housing
Perhaps its main advantage is that it is interest-free. That is, the value of the property is divided into equal instalments, which must be paid regularly, preferably without delay. Each developer sets the requirements independently. It is not easy to find companies with favourable offers.
For registration does not need to provide a certificate of salary (which is usually required by banks when issuing a mortgage loan) – this is a significant advantage. A personal identification document (usually a passport) and an extract from the state register of the property being purchased are sufficient. At the same time, the size of the monthly payment is higher than with a mortgage – due to the shorter term. However, the absence of commission interest makes this type attractive. To get it, you need to make a down payment – usually 20-50% of the cost. Instalment without overpayments is especially convenient for those who do not have the necessary amount of money on hand, and to take a bank loan for various reasons is not possible. Having a stable inflow of money (for example, from renting out another flat) and the ability to financially organise regular payments, this method of payment (in fact, an alternative to a mortgage) allows you to buy the desired living space.
Instalment payment in a new building
A significant number of transactions with instalments are made in the primary market, most often in a house under construction. This version of payment can also be envisaged after the object has been put into operation, when concluding the sale and purchase agreement. The pledge of this property in this case arises automatically with the signing of all the papers and must be recorded in the system. In order to remove the pledge from the object, the debt must be fully repaid. A payment calendar is generated when the contract is executed.
Any investment requires verification of the one who offers favourable investments. Therefore, it is worthwhile to gather information about the reputation of the developer and make sure that he is reliable. There are open official sources for this, such as registers and cadastral maps. The key point is the legality of construction, which is confirmed by permits – all of them should be publicly available on the official website of the developer and in his offices.
To buy property by instalments, you need to contact the sales department of the selected property, choose the flat you want and ask the manager whether it can be purchased in this way. Then discuss the amount of the first instalment, payment period and regularity of payments. To complete the transaction, you will need a passport and other documents that will be requested.
The sales agreement must be signed by a representative of the company responsible for the construction. In this case, it should clearly stipulate the amount of each payment, as well as fines and penalties for delay. The developer has the right to refuse to provide the keys until the entire amount of money has been paid in full.
How’s the secondary market
This kind of transaction is a rather rare event here. For the most part, they are carried out between relatives or friends, but there are cases when strangers are also involved. In this case, it is very important that the parties trust each other, because otherwise the seller risks not receiving the money in time, and the buyer – to remain homeless until the final repayment of the debt. During the drafting of the agreement, special attention is paid to various subtleties, which are fixed on paper.
The parties carefully stipulate the order of how to pay, the circumstances of force majeure situations and penalties for failure to fulfil obligations. And all papers should be obligatorily notarised. In this case, the usual contract of sale is drawn up, which prescribes the address, personal data and contacts of the buyer and seller, the amount of the down payment, as well as the order of transfer of ownership and penalties for delay. The secondary seller is an individual and therefore has far fewer ways to protect his rights than a construction company does.
The advantages and disadvantages of buying a flat in instalments are the small amount of the initial payment, the lack of control over the income and in-depth verification of his financial situation. However, there are also disadvantages – to pay even if construction is frozen, the existence of fines and penalties for late payment, as well as the limited availability of programmes only for unclaimed flats.
Risks of buying a home by instalments
In the primary market, the threats to the client are minimal, but the final cost will be higher due to additional payments. In the secondary market, they offer terms and conditions stipulated in the sale and purchase agreement, but the main issue here is late payments. In case of delay, penalties and cancellations will follow. The buyer’s responsibility for delay is defined in the contract, and the risks depend on the arrangements of the deal. Carefully study the contents of the documents and make sure that the developer is a party and not the bank.
In offers from banks there are possible risks, because in case of non-payment by the client, the flat can be seized against the debt. In addition, you will not be a full-fledged owner until the full repayment of the debt. This allows you to buy a residential property without banks and difficulties in obtaining it, but the cost is likely to be more expensive because of the risks for the developer. Another disadvantage is that there is no opportunity to save money on early repayment of the debt. The repayment period is usually short, whereas a mortgage loan, for a long term. It also lacks insurance, which is risky but also saves money. Overall it is cost-effective for those who are unable to get a mortgage.
