The State Duma proposes to extend family mortgages to the construction of houses on their own

It’s time to oblige banks to issue loans for family mortgages to build a house on their own. More than 70% of private houses are built by citizens themselves or with the partial involvement of contractors. If you provide a million young families with your home, this will give a demographic increase of 2–3 million peoplesaid the parliamentarian.

He also added that supporting mortgages for the purchase of housing in new buildings is contrary to the demographic interests of the country.

Even for a family with two children, most apartments in new buildings look like prison cells in some Norway. Therefore, people en masse choose individual housing construction, which, without any government support, occupies 60% of the market, — concluded Sergei Mironov.

The head and founder of the construction company APS DSK, Alexander Kalsin, criticized this proposal. In his opinion, such an idea will finish off contractors who, on the initiative of the state, are forced to work using their own and borrowed funds.

In addition, it will increase the bank’s hole in the form of mortgage defaults. Individuals will do anything to withdraw real money: inflate prices for purchasing materials, even install dummies. All this looks like lobbying of banking interests. The banking system made record profits last year. So it turns out that while some are making a profit, others are saving for subsidies“, the developer said in a conversation with a correspondent from Tsian.Zhurnal.

The founder of the Metra real estate center, a member of the Association of Realtors, Anastasia Andreychuk, previously noted that the state, on the contrary, encourages the purchase and construction of private houses with the involvement of contractors working through the escrow mechanism.

But the main barrier is the unwillingness of contractors and banks to work according to this model. For many small construction companies, access to project financing remains difficult, and the procedures are longer than traditional schemes. In addition, for a private buyer it is not yet fully clear how escrow works in individual housing construction, in contrast to multi-apartment construction, where this model has already become the standard — the specialist shared.

source: CYANOGEN