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nicklcool
01-07-2018, 08:47
Has anyone purchased an apartment to fix & flip or hold and rent using a mortgage? Do Russian banks have rules that a mortgage-financed property must be owner-occupied, like in the States? And have you tried using one of the government-backed programs like materinskyi capital or a subsidized loan to purchase an investment property? Or do those programs also require the property to be owner-occupied? Thanks to all for your input!

Uncle Wally
01-07-2018, 10:35
Has anyone purchased an apartment to fix & flip or hold and rent using a mortgage? Do Russian banks have rules that a mortgage-financed property must be owner-occupied, like in the States? And have you tried using one of the government-backed programs like materinskyi capital or a subsidized loan to purchase an investment property? Or do those programs also require the property to be owner-occupied? Thanks to all for your input!




Yes the owner should live there but this is Russia.

Hans.KK
01-07-2018, 11:01
Had just got informed that new rules about sale of apartments n Russia is in force of today.
The idea is property (apartments) can only be sold when they are ready for the final owner, you can get the key so to speak, and you can only buy this property from the bank, no more buying from the building company. Had anyone heard about this?
In last week a lot of real estate agents, notary's, and building company's was very busy selling apartments, and some with a very nice discount (40-80%) and some banks even had nice offers and loans too (7%), not all banks, ВТБ would not deal with any new apartments sale, but Sperbank and Bank Sankt Peterborg did.
The most interesting is that all new apartments apparently only can be bought in a bank, the goal should be to secure the buyer from investing his money in some construction work that will never be finish or even build. So now all building company's is standing with a lot of apartments that they had not been able to sell by the old rules, and now they can only sell to the banks, and that banks are the only buyer so price may go down, then banks have time to wait for the right price? And what may happen to the end user price, the banks need money so this price may go up, up, and the winner is: The banks, and who is the owner of the banks? If we can get peoples money one way, we take it in an other way.

Alan65
01-07-2018, 12:00
Had just got informed that new rules about sale of apartments n Russia is in force of today.
The idea is property (apartments) can only be sold when they are ready for the final owner, you can get the key so to speak, and you can only buy this property from the bank, no more buying from the building company. Had anyone heard about this?
In last week a lot of real estate agents, notary's, and building company's was very busy selling apartments, and some with a very nice discount (40-80%) and some banks even had nice offers and loans too (7%), not all banks, ВТБ would not deal with any new apartments sale, but Sperbank and Bank Sankt Peterborg did.
The most interesting is that all new apartments apparently only can be bought in a bank, the goal should be to secure the buyer from investing his money in some construction work that will never be finish or even build. So now all building company's is standing with a lot of apartments that they had not been able to sell by the old rules, and now they can only sell to the banks, and that banks are the only buyer so price may go down, then banks have time to wait for the right price? And what may happen to the end user price, the banks need money so this price may go up, up, and the winner is: The banks, and who is the owner of the banks? If we can get peoples money one way, we take it in an other way.

Yes, I have heard/read similar things on fontanka.ru or saint-petersburg.ru, basically many people took out mortgages to finance the development, developer went bust and were left with nothing, there is a good programme on BBC i player about similar schemes in Manchester and Liverpool

https://www.bbc.co.uk/iplayer/episode/b0b8m22m/panorama-exposed-northern-dreams-failed-schemes

caveat emptor

the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.

Alan65
01-07-2018, 12:12
Has anyone purchased an apartment to fix & flip or hold and rent using a mortgage? Do Russian banks have rules that a mortgage-financed property must be owner-occupied, like in the States? And have you tried using one of the government-backed programs like materinskyi capital or a subsidized loan to purchase an investment property? Or do those programs also require the property to be owner-occupied? Thanks to all for your input!

Yes, I looked into it about 6 or 7 years ago, not with a mortgage though, the places I was looking at were old Kommunikalkas (sp), typically old places in St Petes, that had become run down, the issue was communal services, on going maintenance, setting up a management company that would do the maintenance etc, it is hard enough in the UK let alone in Russia as most of the people in the blocks have no interest in doing this or maintaining them....hence the amount of really nice old buildings in Russia going to rat sh!t.

All in all fix and flip is not something Russians do, they would rather knock down and build from scratch.

tasel
01-07-2018, 16:52
Has anyone purchased an apartment to fix & flip or hold and rent using a mortgage? Do Russian banks have rules that a mortgage-financed property must be owner-occupied, like in the States? And have you tried using one of the government-backed programs like materinskyi capital or a subsidized loan to purchase an investment property? Or do those programs also require the property to be owner-occupied? Thanks to all for your input!

If you're looking for good returns from renting out the apartment using mortgage, it is not a good option. This is my opinion and everybody looks in different ways.