Real Estate Borrower Market

One of the main reasons for increasing popularity of mortgages is the impossibility of "catch up" in housing prices. One friend a couple of two years trying to solve the housing problem without using credit. However, just a few days before the required amount to accumulate a modest apartment, the housing market has once again changed and the planned acquisition was postponed until better times. Wait for the fall or at least stagnating real estate prices is futile, especially if you have to periodically give a significant portion of the salaries for the lease in effect someone else's apartment somewhere in a quiet area of the city. The same amount may be paid in the form of monthly payments on a mortgage, but it is for her own apartment. Choose a market to start to define what you really need.

You can take the credit for the purchase of real estate primary or secondary housing market, to buy their own house or building. While out of competition apartment, they account for 90% of all mortgage transactions, and lending houses only gaining momentum. Often not just to make a choice between primary and secondary markets. On the one hand, buying property in the new building, you get a new apartment with a 100% guarantee against rotting wood floors, break the rusty pipes and other "Surprises". On the other hand, the introduction of property rights can be extended, in the worst case and did not take place. Banks recognize the increasing risks, and tend to set higher interest rate for the period until the borrower becomes the legal owner of the acquired property.

Leasing Insurance

Today the share of transactions with the insured property is 96% of the total cost of leasing transactions, and insurance coverage is provided for several kinds of risks. It should be noted that the Federal Law “On Leasing” states that “the insurance business (financial) risk is carried out by mutual agreement and lease agreement not necessarily. ” This is evidenced by the fact that the share of the insurance institution and credit risk does not exceed 3% of the total insured transactions. The reason for this are the high rates for these types of insurance risks – from 3 to 11% of the payments, as well as the lack of a license for insurance against financial risks in a number of insurance companies. Such conditions significantly affect the insurance situation in the leasing market. Increase lease payments due to insurance, making leasing schemes less attractive to the lessee.

Therefore, about 20% of companies have an annual loss of 0.1% to 12% of the cost of leasing portfolio. The complex economic and legal nature of the leasing market predetermines the appearance of complex insurance of the leased asset. More and more insurers are willing to offer for leasing companies specialized insurance product that reflects the specific interests of participants and leasing transactions. Some market operators also offer insurance of political, social and administrative risks. Many insurance companies developed special conditions of insurance payments on leasing transactions in the form of “Rules of voluntary insurance against the risk of default on lease payments.” Thus, the specificity of the market is that insurance companies leasing transactions exclusively insuring the leased asset. Insure non-payment or late payment of lease payments the lessee is economically inexpedient because of high tariffs. Simply lessor refuse to participate in such transaction or to increase the down payment. In extreme cases, leasing companies insure only the first payments, which are an indicator of the client’s solvency. It should also be emphasized insufficient supply by insurance companies offering insurance against financial risks.