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Thursday, March 22, 2018

The purchase of an apartment in a house under demolition: the deal could bankrupt the buyer

Long-running program of demolition of dilapidated housing coming to an end. Stayed in Moscow to raze only a hundred-story building. Analysts have conducted a study and found, is it possible to buy an apartment in the demolished housing stock with the prospect of getting square feet in the building. And is there any benefit from such transactions?

photo: Gennady Cherkasov

A few years ago to replace the demolished housing, it was possible to get an apartment in the building, and at the rate of 18 square metres per person. Then there were many willing to buy such “tainted” the meters — the benefits were too obvious. Especially popular apartment in the Central district: in the middle of the “zero” years, a law was passed obliging the authorities to provide housing in the same area, where there was a house under demolition.

— For almost the entire period the program of demolition of houses legacy series apartments in the old five-story building was one of the most popular formats of real estate in the capital market — say the study’s authors, Analytics “Metrium Groups”. — Buying a house, in the near future you can expect to move to a new home. Quite a long time it was almost the only opportunity to become an owner of apartment in a new building in one of the populated areas of the capital, and not somewhere in the “sleeping bag” for MKAD.

Apartment prices in the five-story building under demolition is always kept at a very high level — they could be more than double the average on the local secondary market. The study showed that nowadays, to carry only a little more than a hundred homes, the situation has not changed much.

— We can safely say that the segment of apartments in the demolished five-story building today is one of the most scarce in the city. Of the remaining addresses almost everything is settled, — says the managing partner of the company Maria Litinetskaya. — We managed to find more than two dozen lots offered for sale. Most of them are located in the Western administrative district, a few in the South-West and North-East.

Experts compared the prices of these apartments with the cost of new housing. As it turned out, the demolished five-story building is overrated.

Western administrative Okrug is the leader in the number of five-story building being prepared for demolition: there are 48 addresses. Many dismantled houses are in the area of Fili-Davydkovo. The average cost per square meter is 243 thousand rubles. Small-size “kopeck piece” area of 46 sq. m will cost more than 11 million rubles. The cost of housing comparable space in the building will cost the same amount.

In Kuntsevo in five-storey buildings demolished series offered only one apartment, 46,3 sq. m, 7.7 million rubles (166,3 thousand rubles. for “square”). A primary market the minimum cost of a “square” is 177 thousand. In the sale on the market of new left, or large apartments cost from 12,25 million rubles, or Studio with an area of 22.4 square for 5.44 million rubles. It turns out that in the area buying apartments in the demolished five-story building and then get in a new home can be a profitable investment.

North-Eastern administrative district is in second place for number of remaining five-storey buildings demolished series: here 28 locations. The prices for housing in the dismantled homes comparable to the more prestigious area of Fili-Davydkovo. For example, in the Ostankino district for 12.5 million rubles is offered an apartment of 35 square meters) of 12,25 million rubles in the same area, you can purchase a two-bedroom apartment in a newly built residential complex, an area which is more than in 2 times more — 87,47 sq. m. And housing the same dimensions would cost in this area in 2 times is cheaper: 5.4 million rubles per sq. m. 35,44

Southwest closes the three leaders in this County are left to dismantle the 17-story building. In one of the upcoming demolition of the apartment of 32 sq m for 6.4 million rubles. In this budget you can buy a house a little larger in the zyuzino district: 6,39 million roubles here it is proposed apartment with an area of 35.3 sq. m.

Important question: is it possible to buy an apartment in the house that will be demolished? Or selling of housing in such buildings is prohibited?

In accordance with the Moscow city law “On ensuring the housing rights of citizens at resettlement and release of premises in the city of Moscow” dated may 31, 2006, the owner of the premises must be notified in written form about the adopted legal act of withdrawal owned dwelling not later than one year prior to the upcoming withdrawal. The housing code provides for the mandatory conclusion with the owner the agreement on the withdrawal of his residential premises in connection with the demolition of the house. After the government act on the demolition prior to the signing by the owner of the relevant agreement to buy the owner owned the apartment, which is located in a house under demolition. After signing — anymore — says the legal counsel office “Water stadium” INKOM-real Estate Irina Malysheva.

— If the apartment is in the house to be demolished is owned by the owner, to sell it he may at any time before signing of the contract of barter for new housing with the city administration — said the Director of the network of offices of real estate Est-a-Tet Alexey Bernadskiy. — Misconception that this apartment can not sell, if the owner receives notice of demolition and resettlement, and in some other moment. If the apartment is not privatized municipal and tenant, to sell such an apartment tenant can not in principle. And after the announcement of the demolition of the house he can no longer and register in this apartment by other residents.

Actually buying an apartment in a house under demolition, with the goal of receiving more costly housing in the new house is a whole business that a number of people engaged professionally and have a good income. It is most advantageous to buy three-room apartments in buildings under demolition. In law apartment in a new house must be in the same room as in demolished. However, the area of one-room apartment in the panel “Khrushchev” — 30 sq m, the new panel a typical house, which give the apartments for the displaced persons — 38 sqm; two bedroom in the old house — 45 sqm, new — 58 sqm; two-bedroom “Khrushchev” — 58 sqm in a new building — not less than 70 to 75 “squares.”

Apartments in houses to be demolished and therefore are somewhat more expensive than similar proposals in prefabricated houses: it is possible to get a more modern and spacious housing, — the expert continues. — Some unscrupulous owners to sell the apartment more expensive and faster, the announcement indicates that it is in the programme of demolition of homes, although this may not be true. The hardest part of this business to know what the house is worth in the programme of demolition, because this information is not in the public domain.

In addition to the demolition of houses by municipal authorities there are also commercial demolition, when tenants by private companies that also rarely advertised in the public domain before running the program. Even those people who have access to lists of houses in the demolition and are able to accurately see what homes are planning to bear risk: it happens that some objects are eliminated from this list or the date the demolition be delayed for a long and indefinite. However, with this information, some investors are specifically looking for such apartments. And those owners who have already received official notification of the demolition, rarely sell their apartment or asking for them amount similar to the cost of an apartment in a new building with consideration for the prospects of settlement.

The second interesting nuance of this business is to achieve under the settlement house in a good area, not in Moscow, as it is often offered to immigrants. By law, the tenants of the house in the Central district they must provide apartments within the same Central County, but can, alternatively, and in another district. Residents of houses in all other districts, the state undertakes to resettle in the same area, in the best case the next, but not for Moscow. However, not all people know the laws and fearing that the house on Leninsky Prospekt were moved somewhere in Solntsevo, sell these flats on ignorance.

In the Russian registry receives information that the building to be demolished, and the state registration of the transfer of ownership at this location is closed, ” says senior Manager of the Department of secondary housing estate Agency “ABC Housing” Alexander Lunin.

There are three main programs of resettlement of tenants under the program of demolition of dilapidated housing to 2016 in Moscow.

First: the provision of apartments in new buildings to choose from. Squaring the demolished housing area must conform to provide. For the additional square footage will be asked to pay.

Second: the city allocates funds for independent acquisition of the same housing area.

And the third — possibility to take a mortgage on favorable terms in conjunction with the subsidies. It all depends on the specific situation, wishes and decision of the housing Commission. But the reality is that the extra will not, therefore, to speculate on this will not work.

— The benefits of acquisition of demolished homes can be affected by many factors: location (higher unit cost of land, availability of nearby houses higher price category — it directly influences the market valuation of seized property), the presence of at home programs on the demolition and relocation (without this you a long time to settle to a new apartment), getting more money instead of attractive real estate (a planned development to replace the demolished stock) — says the lawyer of CENTURY 21 Russia Damir Hakimov.

Is actually not always profitable to buy an apartment in a house under demolition, — believes the managing partner of “MIEL — offices of real estate” Marina Tolstik. — And here’s why. As soon as it becomes known for sure that the house will be demolished and the tenants in return will be given other housing, sellers typically increase the price. Apartments can be overrated. Based on the practices, I can say that it is not always the price of the new issued apartment is sure to be higher. Under the law the owners of apartments affected in return should be granted another dwelling in the same area. However, in the case that in this area there are no suitable apartments for the resettlement, the owners may be provided housing in another district, but within the city. It is worth remembering that under the law the owner of the privatized apartments in return receives housing similar area regardless of the quantity prescribed. Of course, the owner may receive in return a larger apartment in the house of a higher class, but in this case he will have to pay the difference in cost.

However, the option of resettlement in the apartment a larger area without extra charge is also possible. For example, in the southwestern area of very few homes in which to resettle the owners of the houses that will be demolished. So many people offer to move to bigger flats and at no additional cost, but in the New Moscow.

— If you know in advance that in a few years the house will be a disaster, the purchase of an apartment in such a facility profitable. However, one can say that the price of the future flats will be higher than demolished, ” said managing Director of residential real estate Department at NAI Becar Katerina Sobolev. You must consider the square footage of a new apartment and its location. If the square footage is comparable, the cost of the new apartments will be higher. As for how often the residents are being moved from exclusive areas in the more remote. As a result, the cost of these apartments will be lower.

— The peak of investment attractiveness of the demolished “Khrushchev” came in 2002-2008, — says the Director of the Department of the secondary market ” INKOM-real Estate Sergey Shloma. The program is actively implemented, the house quickly torn down, and people really get an apartment that was much better, larger and more expensive than old housing. In 2008 was recorded the highest high for this category of secondary housing in Moscow: 177,4 thousand rubles for 1 square meter apartment. In those days the benefits of buying housing in the demolished five-story building reached 200-300 percent. Investing, for example, 6 million rubles, the investor could be fast enough to 20 million rubles.

Then stir awake. The role played by economic crisis and reorientation of the new leadership of the city with housing and road construction. A five-story building is “frozen”: the plans for the demolition they were listed, but the timing of the demolition was completely uncertain. In 2013, after the new municipal authorities have declared their intention to complete the program of demolition of dilapidated housing, interest in the purchase of this “secondary” was resumed. Gradually began to increase prices has increased the price gap between demolition and rock-steady five-story building. In 2014, the apartments in buildings under demolition was already about 25% more expensive. However, the investment attractiveness in the beginning of 2000-ies, these apartments do not have. More than that — investing decent money to get an apartment, which cost 15-20% less. The likelihood of this outcome is small, but exists: if, for example, there are no buildings of economy class, the tenants can be relocated to a less prestigious area. Or even in Moscow.


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