How can a young family get an apartment?

Probably solving of housing questions is one of the most important problems for young families in Ukraine. Not only harmony and mutual understanding in family relationships and even birth of children can depend on its results. Today it is quite difficult to become an owner of accommodation and in big cities it is also expensive. Therefore for the majority of capital citizens having a roof over their heads is a cherished dream which often does not come true.

Newlyweds begin to think about purchasing of a real estate during the first year after marriage when renting an apartment for long term or daily in Kyiv, living in a hostel or dwelling with parents. First of all they pay attention to state programs of financial support in the moment of purchasing of an apartment. What do these programs mean and do they meet the newly married couples’ expectations?

Long-term concessional lending

This government program provides the granting of loans at 3% interest for the duration up to 30 years. There is an age limit of family till 35 years, preference is given to those who succeeded in a particular sphere, such as young athletes, scientists, etc.

Advantages:
1. Loan granting on a long-term basis (not all banks can offer such term).
2. A young family without children receives a loan at 3% interest per year, with one child - free loan, with 2 children - 25% discount of the housing cost, with 3 children- 50%.
3. The first contribution is 6% of the cost of apartment.

Disadvantages:
1. Assessment of payment capacity of all family members passes on general basis, only few people with declared salary are appropriate on such conditions for bank.
2. In case of a payment delay the recompenses are ceased.
3. You must be registered with housing authorities.

«30 on 70»

Such variant of state support provides the payment by the Youth Development Foundation of 30% of the apartment`s price, and 70% of the amount is paid by a young family. The application can be put in by the member of family who lives in the apartment where housing is no more than 7.5 sq.m per person. In this case it is possible to queue up for housing improvement.

Advantages:
1. It is almost impossible to find a 30% discount for the purchase of property on the real estate market.
2. No age limit.

Disadvantages:
1. A large apartment can not be expected if the total area of the purchased apartment exceeds the standard one (21 sq.m. per one person), therefore a family will pay the odds on their own cost and expense.
2. The necessity of being registered with housing authorities.

Cost reduction of real estate loans

The state program provides the recompense of vast majority of interest on the loan to the borrower (a young family).The interest on bank loan should not exceed 16%,13%  of which are paid by the state, and the remaining 3% are paid by the borrower. This variant of state support was created in 2012 and reminds the program «Long-term concessional lending».

Advantages:
1. A housing credit is provided at 3% interest for 15 years.
2. No need to be registered with housing authorities.
3. No age limit.

Disadvantages:
1. The down payment can be nearly 50 % of the apartment`s cost because of the big difference between the net and calculated price of the acсommodation.
2.  Payments more than 180 days late cause the amends cancellation.

All above-mentioned variants suppose the purchase of apartments on the primary housing market, more frequently bearing-wall houses of low category houses (which are of little demand). Besides the public welfare homes are not built in the centre of Kyiv, but the remote areas such as Poznyaki, Shulyavka, Troeschina are offered. As a result a lot of families have doubts about interfering in financial credit peonage where the purchase of real estate is more expensive than the daily rent of apartments or anyhow it is better to save money and to buy the housing after their own heart.

August 28, 2014