Can I buy a house without a mortgage in 2019? What are the alternatives if you do not want to take a bonded loan?
Society is divided into two opposing camps: some people believe that the mortgage is a voluntary bondage, which for many years burdens a person or the whole family with a number of duties. Others believe that only thanks to the mortgage you can buy your home without decades, going to the accumulation of the necessary amount, this category of people considers a mortgage good.
If you belong to the first category of people, this article will help you learn a few practical tips that will tell you where to get money for an apartment without getting a mortgage.
Mortgage or lease
This question is key for people deciding whether they need a mortgage. Many people ask what is more profitable: to save without a mortgage and live in a rented apartment or still take the money from the Bank and solve the housing problem immediately. Soon on our website there will be a separate article on this subject. In this article we will consider only the main arguments.
Opinions on this topic are currently at odds, not only among ordinary people, but also among experts in the field. However, it is safe to say that the scheme with the accumulation of the required amount and accommodation in the rented premises is relevant for all who are not tied to the same place of residence. Such people often move and the availability of permanent housing, especially acquired in a mortgage, is not an extremely necessary solution for them.
However, accumulation should not become the usual "folding money under the mattress." You need to learn how to invest, so they do not just lay and accumulated, and worked for you.
Often you can find such a scheme:
- A room in a communal apartment is purchased with a small capital;
- Money is saved up until it is impossible to sell the room and buy a small Studio;
- The process is then repeated until the acquisition of housing that meets the needs.
The main advantage of this scheme is that there is no need to overpay. The main disadvantage is the need to make a large number of sales transactions. At the same time, we constantly have to study the market and its trends.
Where to find money to buy a home without a mortgage
The scheme described above is a good option, but what if there is no desire or opportunity to use it? Is it worth saying goodbye to the idea of buying your own home without a loan?
Do not despair. There is another option, the effectiveness of which is not worse. It is necessary to invest their own income. Returns on investment should be set aside for future purchases.
Let's analyze both methods of buying an apartment.
- Buying an apartment in a new building with a mortgage
For example, an apartment worth 5 million rubles is purchased under a mortgage agreement with a popular interest rate of 11.45% per annum, for a period of 15 years and an initial payment of 1 million rubles. the Amount of monthly contributions in this case will be 43 thousand rubles., by the end of the term you will have to pay a little more than 8.3 million rubles. (+1 million rubles initially), of which 3.3 million rubles.
- Accumulation of funds for the apartment at the expense of monthly Deposit in the Bank
For example, we have opened a Deposit at 7% per annum, which is replenished monthly for the same amount of 43 thousand rubles. As a result, for 7 years of such replenishment will accumulate a little more than 4.67 million rubles. a Little more than 1 million rubles. – interest under the contract.
As a result, from 6 – 7 years of savings with deposits can be collected on the same apartment. The only caveat that should be taken into account in this case is the absence of strong economic shocks.
Additional ways to purchase an apartment without a mortgage
If none of the above methods are suitable for you, you can use one of the alternative methods that we will describe below.
- Consumer loan
In this case, no Deposit will be required, no need to wait a long time for the approval of the application. This option is suitable for those who have at least half the amount needed to purchase an apartment. It should also be understood that due to the fact that such loans are more affordable, they have a higher interest rate and a shorter maturity.
- Installment agreement concluded with the developer
Additional opportunity to buy a house without a mortgage agreement. The installment agreement becomes especially popular in a period of unstable economic situation. Developers periodically offer profitable options for those who want to buy a house, having only 30% of the required amount.
- State program
Some categories of citizens have the right to preferential conditions for the purchase of housing. State housing subsidy programmes help to make housing more affordable for military personnel, civil servants, various categories of families (low-income, large and young), war veterans, scientists, etc.
- Maternity capital
Another option to purchase an apartment without a mortgage, loans and other complex multi-year methods. All you need is to sell the existing property (if any) and buy a new one, using a surcharge from the state, after the second child reaches the age of 3 years.
- The annuity contract or annuity
Such contracts are most often concluded with elderly citizens who have housing and who need constant care. In the case of an annuity contract, the claimant pays the current owner at least 2 minimum monthly wages. In the second – for life cares for him. The agreement is mutually beneficial and widespread. If an elderly person declares conflicts, the contract will be terminated, even if other conditions of the contract were fulfilled completely.
This scheme is suitable for those who already have a home, but they would like to change it to a more suitable option. In this case, the cost of one of the apartments is counted towards the cost of the other apartment. Naturally, the remaining amount is paid. During the transaction is two synchronous contract of sale, according to which the apartment is purchased from the owner, and in return provided your apartment, plus a surcharge.
As you can see, there are a lot of ways to buy an apartment without a mortgage. Some of them are easier, some more difficult, but the main thing is to clearly set a goal and go to it.
If you have any questions, please write in the comments, our experts will answer them.