The Russian government will allocate 5 billion rubles to improve the living conditions of young families with children. This was announced on Friday, July 24, by Prime Minister Mikhail Mishustin.
“We are talking about compensation of 35% of the cost of housing for young families with children, and first of all for large families. A government decree has been signed, which allows them to use the payment for the purchase and construction of housing not only of economy, but also of a higher class, ”Mishustin said at a meeting of the Cabinet.
As the Prime Minister emphasized, the measure will help solve the housing issue of more than 15 thousand young families. Moreover, the authorities are currently considering expanding the number of beneficiaries. As State Duma deputy Svetlana Bessarab told RT, the other day a bill was introduced to the lower house of parliament to raise the age of youth to 35 years.
“Now only Russian families with children under the age of 30 can receive funds to improve their living conditions. But in practice, the average age at marriage in Russia has grown significantly in recent years and often goes beyond 30 years. Therefore, it would be logical to consider Russians as young people under 35. This will allow a larger number of citizens to take advantage of government support measures, including benefits for the purchase of housing, ”the MP said.
According to analysts interviewed by RT, payments should support Russians during the period of economic recovery. According to Artyom Deev, head of the analytical department at AMarkets, many families will be able to use funds to refinance the current mortgage and thereby reduce the burden on their budget.
“These funds can be used to shorten the maturity of a mortgage loan or reduce the monthly payment on the loan. Considering that the average cost of an apartment in Russia is about 3 million rubles, the program participants can receive compensation from the state in the amount of 35% or 1 million rubles, which will be a good help for Russians with children, ”the expert emphasized.
Citizens will be able to use the funds received as a first installment on a mortgage, says Pavel Sigal, vice-president of the all-Russian public organization of small and medium-sized businesses "Support of Russia". As the expert noted, it often takes a long time to collect money for the first payment for housing.
“Often, cramped living conditions or living with relatives do not allow newlyweds to think about increasing the number of family members, and the large size of the first installment pushes them away from the decision to buy their own apartment. This state of affairs also slows down the demand for housing among young people. State support, coupled with other concessional lending programs, will solve these two problems, "Sigal explained in an interview with RT.
- RIA News
- © Alexey Maishev
According to experts, in recent months, the program of preferential housing loans at 6.5% per annum has been the most popular among young Russians. So, until November 1, 2020, citizens can apply for loans with an appropriate rate for the purchase of apartments worth up to 12 million rubles in Moscow and St. Petersburg agglomerations, as well as up to 6 million rubles in other regions of the country. According to government estimates, banks have already issued 80,000 loans at a reduced rate in the amount of 205 billion rubles.
“The program has caused a huge demand among Russians, who hastened to get a mortgage on attractive terms. As a result, this measure provoked a record decrease in the average rate on housing loans in Russia and at the same time supported the real estate market, ”noted Artyom Deev.
According to the Central Bank, in May 2020, the average mortgage rate in Russia dropped from 8.32% to 7.4% per annum. The value became the lowest ever observed. According to analysts, the further reduction in the cost of loans for housing will largely depend on the policy of the Bank of Russia. Financial institutions monitor changes in the key rate of the Central Bank and, on the basis of decisions made by the regulator, independently determine the level of long-term lending rates, including mortgage rates.
At a meeting on Friday, July 24, the Central Bank lowered its key rate to 4.25% per annum - the lowest level in the entire post-Soviet period. As a result, by the end of the year, the average mortgage rate may drop to 6.2-7% per annum. This opinion was expressed in an interview with RT by the investment strategist of BCS Premier Alexander Bakhtin.
“Reducing the cost of a mortgage loan even by 1-1.5% per annum can significantly reduce the costs of families to pay off the loan. In general, the trend towards lower rates will increase the demand for both new buildings and the secondary market, ”the expert concluded.