If Russian authorities decide to close the preferential mortgage program after July 1, 2024, at least two-thirds of citizens’ demand for mortgages will disappear. This opinion was expressed by BCS World of Investments stock exchange expert Valery Emelyanov in a conversation with socialbites.ca. However, he said that this was not a possible scenario.
“At current prices, very few Russians can afford to buy apartments in new buildings with their own money. And this means 60-80% of all housing sold on credit,” Emelyanov noted.
The expert added that, on the other hand, the main market for housing loans is the secondary housing stock, where people change apartments with or without additional payments.
“There is always a secondary market for any rate and contribution. Because to buy a traditional two-room apartment, you need to sell your one-room apartment, take a loan or loan from relatives and pay extra. So mortgages are an important driver of sales, but not the only one. People solve the housing problem in different ways, and for the most part it has nothing to do with concessional mortgages,” said Emelyanov.
The expert predicted that even without concessional mortgages, people would still buy apartments second-hand, not from developers, but on the secondary market. Those who cannot do this will start renting or living with their parents, Emelyanov said.
In December, the Ministry of Finance of the Russian Federation proposed to increase the amount of down payments on concessional mortgages again from 20% to 30%. By government decision in September, this rate was increased from 15% to 20%. What could the new tightening of conditions mean for Russians? material “Newspapers.Ru”.
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