Today, many people dream of their housing, however, the high cost of real estate forces most of those in need of improving housing conditions for a long time to postpone the long -awaited purchase. There are also options such as the design of a mortgage and installment plan, however, a modern person is trying in all possible ways to avoid a mortgage, since it provides a large amount of overpayment. Thus, the purchase of real estate in installments is the most profitable type of gradual calculation for new housing, but a similar type of loan has a number of features that need to be taken into account. What is an installment plan and what is its main advantages? Installment is called repayment of the value of the acquired real estate for a certain time in parts, the amount of which depends on the terms of the contract. In addition, installment plan may include the introduction of a kind of prepayment, which makes up a certain percentage of real estate value (0-20%), after which the remaining amount of the debt is divided into equal parts, which the debtor must pay in a timely manner. The installment period, as a rule, is very short and rarely exceeds 12 months. In this case, the amount of the necessary payments is usually quite large amounts. The main advantages of installments include the possibility of acquiring real estate on credit without accruing interest or with minimal interest. In addition, installment plan does not provide any insurance, commissions and other additional payments. Another significant plus of such a loan is the minimum number of documents that is necessary when drawing up a contract.
Firstly, not all developers (sellers) offer installments, and secondly, a short loan period leads to the need to permanently introduce very solid amounts, which is sometimes difficult to find in a timely manner.
Recommendations of specialists
Many realtors and large real estate agencies convince that you need to be very careful when buying real estate in installments, especially when it comes to shared construction. In such cases, developers conclude with buyers a preliminary contract that does not provide for the transfer of property rights. In this case, the developer does not have the right to demand any prepayment, since finally installments are made out only after the construction is put into operation.