Secondary housing is what?

Today, one of the main indicators of the welfare of an ordinary citizen is the availability of real estate. And all due to the fact that house prices have been sky-high and do not stop at the achieved level. There is nothing surprising in the fact that many people approach the choice of housing with maximum responsibility - in fact for many people this is almost the main purchase in life, which, perhaps, will not have to be repeated.

When future buyers have to deal with the concepts of primary and secondary housing, then there are doubts and disputes. For some, new construction seems more profitable at the expense of a low market price, and other advantages, it is not devoid. But this does not mean that the primary market can be considered ideal, and the formerly owned apartment overgrew with flaws. We will understand what secondary housing is, what are its pros and cons.

Secondary housing is what?

First, we will understand the concept itself. For many, the secondary housing market can only be represented by the apartments of the old fund. That is, there can be no talk of any new planning and modern living conditions. In addition, there are old elevators, meters, wiring and pipes. And neighbors leave much to be desired, whereas in new buildings, dubious persons do not settle.

Undoubtedly, there is some truth in these statements. But even in the secondary market apartment apartment is different. Secondary housing means that property rights have already been drawn up. That is, the main difference that separates the primary market from the secondary market is the availability of a record of appropriation of property in the Unified State Register.

The second-hand apartment is always "old"?

Why not take it for granted that secondary housing is necessarily an old, worn out house? Because the apartment in the new building can also be formerly owned - does not anyone sell absolutely new housing in a newly built house due to relocation or other circumstances? In addition, if after the introduction of a new house, not all apartments are sold, the developer issues the property for himself, and no one who is occupied automatically switches to secondary status.

What are the apartments in the secondary market?

Secondary housing is a rich choice of apartments, different categories and characteristics. Real estate specialists distinguish several of its types in this market, classified by physical characteristics and level of value:

• Low-grade housing - apartments in the houses of the old year of construction, with a height of 2-3 floors. In such premises, there are often no basic communications - sewerage and water supply. Heating of houses is often carried out due to stove heating.
• Standard rooms - usual secondary housing, one-room or two-room apartments in typical houses with a height of 5-16 floors.
• Apartments of improved type - housing in modern and standard houses, characterized by increased comfort. Characteristic of the presence of ancillary facilities such as storerooms and cloakrooms, as well as a greater number of bathrooms than in ordinary rooms.
• Elite housing is a property of class A, the feature of which is the presence of a decent local area, parking, concierge and security guards. In elite houses, as a rule, not more than 30 apartments.

Other factors affecting pricing

It should be taken into account that the price of an apartment may fluctuate depending on the location of the house and the availability of a developed infrastructure in the area of housing. So, comfortable and comfortable one-room apartment of the improved type, located on the outskirts of the city, can cost much less than a modest odnushka in the house of the old layout in the center. The pricing is also affected by the physical condition of the premises and their area.

What are the disadvantages of an apartment in the secondary market?

Let secondary housing - it is not necessarily a "second class" housing, but some of the disadvantages of such property is not deprived. We will not take into account the problems with communications in really old houses. As an example, consider a comfortable apartment in a house with a fresh layout. Even here new owners can expect pitfalls:

• The unclean "legal history" of the apartment. It has long been known stories about property owners who serve time in places not so remote, or are in a psychiatric clinic. From this point of view, secondary housing is like a cat in a sack.
• Outstanding debts for communal or other payments, arrest of the apartment by bailiffs for non-payment of debts.
• Wrong documents for the apartment. If such a fact is revealed after the purchase by new owners, the contract of sale is recognized as invalid and the transaction is canceled.
• Dysfunctional neighbors. For someone, this problem may seem insignificant. But, as polls show among the population, noisy and scandalous neighbors often provoke some citizens to change their place of residence.
• Price. Whatever one may say, an inexpensive secondary housing can only be in a stalinka or a Khrushchevka with old and rusty pipes. In other cases, the cost of an apartment in the secondary market in new homes is much higher than the cost of uncommitted apartments.
• Another is not the most pleasant trifle, not allowing you to save money when buying an apartment: it is almost impossible to buy a second home without intermediaries. Owners of premises prefer to apply to specialists in order to sell real estate more quickly. And those add to the cost of their commission - because for the works of real estate agents, someone must pay.

Advantages of the secondary housing market

Despite a number of shortcomings, real estate professionals are actively defending the secondary market. There are quite logical reasons for this:

• There are many proposals on the market. This allows the buyer to choose the area, category and type of housing that will meet his requirements.
• Mortgage for secondary housing is provided more readily and with lower rates. This is due to lower risks for the bank when entering into a transaction for real estate.
• The apartment is in the "buy and live" mode. Unlike the new building, when the house is not ready, the documents do not yet exist on the documents, and after commissioning, long-term finishing works are most often required.
• The cost of second homes, of course, exceeds the price of an apartment in a new building, but this is more than offset by the lack of the need for repair and decoration costs.

How do banks treat the secondary market?

As it was already noticed, mortgage for secondary housing is provided by credit organizations much more often than on a new building. There are several reasons for this. First, the new housing market is renewed at a slow pace, while the secondary market offers a rich choice of various price categories.

Secondly, housing that exists only in the project, as in the case of new buildings, poses some risk for the bank. Credit organizations carefully choose developers for cooperation, but from unforeseen circumstances no one is insured.

Requirements of banks to the secondary market

But also to the apartment that has visited the property, credit organizations make their demands. After all, real estate becomes a bank guarantee for the entire crediting period. In the event that the borrower turns out to be financially insolvent, the bank will be required to realize the collateral in order not to incur losses. Therefore, the apartment must meet certain physical characteristics, so that nothing prevents its subsequent resale.

• The house in which the borrower plans to purchase housing, should be erected no earlier than 1957.
• A prerequisite is the availability of all modern communications. The bank will not pledge a house in which there is no hot and cold water supply, heating and sewerage.
• By the time of full mortgage payment, the house in which the apartment is located should not be physically worn out by more than 70%.

What about the legal cleanliness of housing?

Banks are required to the legal history of the apartment - no encumbrances are allowed. It is not allowed to register in the premises of third parties, as well as the availability of arrests or pledge agreements with other credit organizations. In addition, the bank will require all the title documents and check them for the presence of errors and inaccuracies. This is on hand and future owners - they will get a quality checked apartment, which in time will not reveal unpleasant moments.