Mortgage, installment or lease with option to buy?

In general, there are only a few ways to purchase housing in the property. The most common, if you do not have enough money for full payment of purchased housing:

Accommodation in installments;
Buying with a mortgage;
Rent with option to buy.
Let's look at the pros and cons:


Buying with a mortgage

Mortgage loan can be obtained at the bank. The bank just will not give money. Firstly, it will check your income and calculate the amount of credit taking into account the fact that the loan payment should not exceed 35-40-45% of your income (this depending on the risk appetite of the bank). And, of course, you all still need to make a part of the expense of their own money, 10 percent, or even 30 (again in different banks have different requirements in this regard). Rate? Well, the standard rate, is now 12-17%, depending on who buy housing. In the builder - it is cheaper. What is more important? Of course, the term of the loan. The longer, the lower the payment on the loan and the more you can give the loan amount. The Mortgage maximum loan term - 30 years. One should not forget the fact that the apartment at least once and transferred to your property, but the bank is burdened by rights, ie It is pledged. Without the consent of the bank you are in an apartment, in fact, you can only live and make repairs. Neither change, nor sell nor give nor let lodgers - not.


Buying a home in installments

Installment plan - is to buy a property with deferred payment. Those. buy now, pay later. Buy a house in installments of an ordinary seller - an individual is not real. Who would give up his apartment without having to pay? But the seller - the developer can. That developers are actively provide for payment by installments. Especially now, during the crisis, they need money. Why not use it? What is the difference of the mortgage? In principle, only deferred payment terms. The mortgages have payment period is extended to 30 years, but in installments - a maximum of 5 years This means that the installment monthly (or other payment, it is how to negotiate with the developer, maybe you will have an annual payment) payment will be higher. Yes, more importantly, the developer is likely to require more than 10% down payment and the interest rate is 50, which is taken into account in installments? Well, less likely rate mortgage. If you are not planning to take a mortgage for a long time, the installments for you - option.

Hire-purchase

An interesting phenomenon, actively began to develop in recent years. Buying an apartment in a lease with the right to repurchase means that you do not become the owner of the right. This - minus. Although you will not need to insure no apartment, no self that necessarily required when the mortgage. This - plus. The rate is a little "bite", ie it is higher than the mortgage and installment. Term of the loan is less than the mortgage - up to 15 years. But in general, it is not so terrible, because during the term of the loan over 15 years, the payment amount on it almost does not change. But the more attractive the lease? And the fact that you do not need to prove your income, no one important is your check, no one will view your credit history. After all, you do not need to make an initial payment. You sign a contract with a company that is selling you an apartment, dwell in it, not being the owner, and start to pay a certain amount each month. After payment of the apartment, you become its owner.


No comments:

Post a Comment