Home
Buying
| Buying Apartments / Houses |
|
|
|
There is an active market in buying and selling of apartments and houses. Initially it was a market for cash-packed players. Today this has changes. The property market has been fueled by the growing number of financial institutions that offer mortgages/loans. Conditions for loans are still tough but gradually the interest rates are dropping, the loan amount and duration of the loans are increasing and the general terms and conditions are developing more into the direction of more developed markets. The government is offering attractive mortgage schemes for young people in order to enable them to buy their first property.
Prices for residential properties have increased significantly over the past years. In 2001/2 the prices for apartments were 4x cheaper. Today the prices are comparable with any large city in Europe. This has increased the number of new projects in and around Kiev and will continue for the years to come. Generally it is expected that the prices will keep rising gradually.
A significant difference exists between the primary market (newly constructed) and the secondary market (existing property market). In the primary market the apartments are sold before they are commissioned (stamp from city that building is ready for use) against a premium price. The so-called investment contracts. The risks are higher then on the secondary market. The main risks are whether the building will be finished and if delays in construction that often occur. The primary market still rewards the risk but we expect a similar trend as in Moscow where developers will get cheaper access to finance and as a result this will reduce the premiums awarded.
|
|
Buying a property on the secondary market is less risky and a fairly straight forward process. Contrary to the common perception by foreigners, property ownership records are kept in meticulous order by the designated authorities. The main challenge is to find the desired object for the right price. For this we propose the following steps written below.
We find it very important to first organize a meeting to match the expectations. This first meeting can save a lot of time, prevent annoyances in the steps to make and will resort into an efficient and targeted approach.
|
1 - Initial meeting
|
 |
2 - Long list
The S1 property consultant will compile a long list of properties for viewings. From experience we know that there will be a great variety of different quality properties. It is a time consuming process and the right input by the client is essential.
3 - Viewings
Tour the listed properties selected
4 - Short list
In this relatively untransparent market often one or two specific properties stick out to all the others. If the final choice has been made a brief review of the legal documents can be conducted in order to enter into the next steps of negotiations.
5 - Negotiations and down payment procedure (preliminary agreement)
Firstly a negotiation strategy should be planned in advance and then put into action. Once the head of terms are agreed between the parties, the preliminary agreement can be drafted. To secure the property from being offered to other parties until the final sale/purchase agreement has been signed a deposit is required by the seller to be paid by the buyer. The amount of the deposit is not fixed but is often between 5%-10% of the total purchase price. Once the preliminary agreement is signed and the deposit has been transferred the period starts whereby the seller has to produce the full set of documents in order to hand over the property. If all documents are ready the sale/purchase agreement can be signed and after the final payment the property will be handed over to the buyer (step 6).
The above description is simplified and many issues need to be addressed. We at S1 will be able to guide you safely through the process.
6 - Final purchase
The property will be registered in the name of the buyer/legal entity. Registration, utilities, physical move out and other small administrative things will be arranged in the successive 2 weeks.
7 - S1 support after signing the final sale/purchase contract
Once one becomes owner there are a lot of issues to take care of such as registering of ownership, transfer of utilities, telephone etc. In case one plans for a renovation a lot more need to be dealt with. We have experience with all this and are more than happy to share knowledge, experience and network of contacts with you. On a case to case basis we take on the management of renovation projects. In case one wishes to rent the property out we can also manage that process (see property management).
| Buying office space
|
|
Please contact our office for more detailed information on buying small to medium size office space
|
|
Tel: +38 044 272 2905
|