Corporation DMS together with Donetsk direction of one of the leading banks reveal individual line on housing loans

Experts predictions regarding health of real estate market, at first glance, diverse and mutually exclusive. But it is only at first glance. When scoring each figure market experts do a lot of reservations, which reveal the essence of the processes taking place in the residential sector.

This year may be a turning point for the complex construction, think in the Ministry of Regional Development, and forecast a return to pre-crisis level of construction in the second half of the year. Officials even agreed with capital builders that the latter limited the margin of 5%. This will make the housing prices in Kiev minimum and that should serve as a model throughout the country. However, according to the head of the Real Estate Department of Ukrainian Trade Guild, the cost of social housing in Kyiv is now $ 600-700. No one is going to sell it less than $1000.
A post-crisis syndrome is also observed on loan market. New buildings on the bail of purchased object are being credited at the moment by a little more than a dozen of banks. Stringent requirements for borrowers, often including conditions to provide additional collateral and financial guarantor, will be one of the most important factors limiting the growth of mortgage lending. At the same time, experts predict that in the coming months, the number of mortgage loans will continue to increase. Rates on loans can be reduced by 1-2% under the pressure of competition. However, these trends will affect mainly lending for the purchase of secondary housing. The situation in the primary market is unlikely to change. Banks do not want to lend to developers. Many unfinished objects have already been credited several times and sold. Ultimately, banks simply do not understand who they will give money to.
The only way out of this situation is the direct cooperation of banks with developers. Benefits for home buyers are obvious: from ready offer in crediting to reliability guarantees of the developer in the eyes of the lender. However, there are not many such affiliate programmes in Ukraine. Now one of them works in Donetsk: DMS Corporation signed an agreement with the Directorate of VTB Bank. We are talking about apartments in houses of construction companies belonging to the Corporation. Recall that the general contractor for these projects is Ukrainian Building Corporation LLC. Today this is the only company that builds the economy-class housing in Donetsk and the region, but with the use of modern technology.
In December 2009, Ukrainian Building Corporation LLC put into operation two houses: 5 storied-building in Petrovskogo str., 191Г and 16 - storied residential complex on the Araviyskaya, 6B. Houses are solid- frame constructions with brick walls, with modern communications and individual heating system. New building are located in areas with developed transport and social infrastructure. Management and operational issues are performed by condominiums, which provide quality public housing service. Last winter - the first for the residents – did not bring major problems as the house is equipped with high-quality facilities, and their work is in fully controlled by the condominium, i.e. tenants.
“Very often when buying apartments our customers are interested in lending conditions. However, DMS Corporation is not a lending institution. The maximum that we can provide is an interest-free instalments. However, this is not always enough,” - says Svetlana Egorova, the Head of Sales Department of DMS.
In anticipation of the start of the “second wave” of sales of apartments in these houses Corporation made its product more accessible to potential buyers. The existing housing loan market offers were previously analysed and a long-term partner, who offered the most favourable conditions, was defined.
So, those who are wanting to buy apartments in buildings in Petrovskogo, 191 Г and Araviyskaya, 6B may receive credit on the following conditions:
- initial payment of at least 30% - to 120 months at 18.5% annually;
- initial payment of at least 40% - to 180 months at 18.0 % annually;
- initial payment of at least 50% - up to 240 months at 17.5 % annually.
In addition, for customers of the Corporation and the Bank scheme of repayment is individually developed, monthly commission is cancelled, early repayment does not involve penalties.
“We studied the suggestions and experience of banks very carefully, because our potential buyers are people who are accustomed to count money,” - says Svetlana Egorova, the Head of Sales Department of the Corporation. – “There were more attractive terms, however, with certain limitations, for example, it concerned only the secondary market or there was monthly commission that, as a result, increased the percentage. Conditions of ВТБ Bank seemed attractive to us, moreover, the indicated lending percentage was created individually for buyers of apartments in our houses, for other customers of the bank it is somewhat higher.”