Currently, Russia has the largest state program to support individual housing construction in recent history. It was developed by the Ministry of Construction in response to the growing demand for individual houses. Until 2024, almost 138 billion rubles will be allocated for its implementation. How not to remain strangers at this holiday of country life, what programs you can participate in and what benefits you can receive, and what pitfalls they may have, we tell you in our review.
Rural mortgage Land plot for families with three children Compensation for mortgage repayment Preferential mortgage for large families Mortgage for house kits Far Eastern hectare What to expect next
Rural mortgage
Now this is the most profitable program of all that operate in our country. All regions except Moscow, Moscow region and St. Petersburg participate in it. The list of settlements that participate in the program was approved by the government of each region.
Here are the terms of this program before October 27, 2020:
- mortgages were given for the purchase of housing, either new or on the secondary market; for the purchase of unfinished buildings, for the purchase of a plot and construction of a house (but only under a contract);
- loan amount - 3,000,000 rubles, in the Leningrad region and the Far East - 5,000,000 rubles;
- loan term – 25 years;
- the down payment must be at least 10-15% (this depends on the bank), the interest rate is 1-3%.
The state compensates banks for lost income.
This program is fundamentally different from similar ones in that it provides for improving the quality of rural life: a mortgage can, for example, cover the costs of a gas tank or an autonomous power supply to a house. Moreover, modern engineering communications are a prerequisite for obtaining a mortgage.
DimawarFORUMHOUSE Member
My option was not suitable for a rural mortgage because the house has a stove. As the bank manager explained: the electric heating works, but the brick oven does not. If only there was a solid fuel boiler...
IMHO FORUMHOUSE Member
The main point of this freebie is that the state sponsors “forward to the future” and not “back to the past.” The presence of landscaping is mandatory for this program. At least autonomous.
Despite all the restrictions, “rural mortgages” were selling like hot cakes in the cold, so the program was extended, but from 2021 it will work in a new way.
Changes were made to it by government decree No. 1748 dated October 27, 2020. Now under this program
- you can’t buy apartments in buildings with more than 5 floors - and before there was no such condition, buy at least on the 30th floor, if there is such a high-rise in your town;
- for another region, the Yamalo-Nenets Autonomous Okrug, the credit limit was increased to 5,000,000 rubles, for other regions it is still 3,000,000 rubles;
- to repay “rural mortgages” it is officially allowed to use maternity capital; previously the program did not mention a ban, but there was no direct permission either, and banks often refused to cooperate with borrowers on such terms, fearing that the state would deny them subsidies;
- Now you need registration! The borrower will not be given a mortgage if he does not register with the mortgage housing. Within six months from the date of registration of property rights, it is necessary to notify the bank that the borrower has registered in the mortgaged housing;
- It will be possible to build on a rented plot (previously, a mortgage was given only if the plot was owned. Although analysts say that the owner of the plot has a greater chance of getting a “rural mortgage” for building a house than the tenant).
Some users of our portal took out such a loan and are very happy about it, but judging by the experience of our users, it is much easier to take out a loan for the purchase of a finished house than for construction.
KutuzannaFORUMHOUSE user
In our region, purchase applications are approved, but negligible numbers are approved for construction. We have just applied for construction; we are required to have a house with a fine finish and an area of at least 15 residential square meters per person, and a large kitchen-living room is not considered residential.
What causes the most excitement in discussions on our portal is clause 9 of the government resolution on the provision of subsidies, which states that the interest rate may change “if a decision is made to refuse to provide subsidies, the basis for which is a lack of budgetary allocations and limits on budgetary obligations brought to the Ministry of Agriculture". At the same time, “a change in the interest rate under a credit agreement (loan agreement) cannot exceed the key rate of the Central Bank of the Russian Federation in effect on the date of the change.”
This is the biggest pitfall of “rural mortgages”.
Legal consultant FORUMHOUSE with the nickname Dremlin therefore advises to rely primarily on your own strengths, “as if this mortgage did not exist.” The program is stated to last for five years, but anything can happen.
DremlinForumHouse Consultant
My opinion: if you, in principle, have the full amount for construction, and you just want to save a little by taking out a loan at a preferential rate, and in the meantime put your money into circulation, or even simply convert it into foreign currency, and if you are ready for construction, not with your own hands, and with a hired contractor - yes, you can consider this program. Well, or if the full estimate for construction significantly exceeds the loan amount (for example, the full estimate is 15 million). If you are going to build with your own hands, and you only have enough money for even construction, taking into account the loan, then it is better not to get involved: a change in the rate will be deadly.
When and where will the money arrive?
When the decision to pay assistance is made, the applicant is issued a Subsidy Certificate within 10 days. You should go to the bank with this document.
The budget works with banking institutions participating in the state program. Local administration employees will tell you which one to contact.
The bank will open a special account in the applicant's name. The basis for this operation is only the Certificate of Assistance. The account will be special; funds cannot be withdrawn from it, only transferred to contractors. To carry out such an operation, you must provide the bank with an agreement with the builder or other papers.
Specifically, you will have to consult with specialists from the financial institution on this issue.
Budget money is strictly controlled. Follow the bank's instructions exactly.
How much can you expect?
State support for housing construction in 2021 is calculated based on the sum of the parameters. These include the following indicators:
- standard living space per person;
- price per square meter in the region.
These parameters are established by the Government of the Russian Federation annually.
The applicant himself can estimate how much money he will receive from the state. Typically the amount does not exceed 70% of actual costs. But it can be significantly lower - from 10%. It depends on the composition of the family, the number of dependents and other factors.
The decision is made by local authorities, which take into account the degree of need for housing improvement and the characteristics of the area. In particular, there are cases when the budget takes on 100% of the costs of building a house.
How to report on budget money
The funds received by the citizen are earmarked. To confirm their use, you must provide relevant documents.
If a targeted subsidy is provided, this is:
- copies of payment documents related to the construction of the house (a month is given to collect them);
- extract from the Unified State Register of Real Estate.
Control of the amount of compensation from the budget is carried out when submitting an application (see above).
If you cannot justify the intended use of the funds, you will be forced to return the entire amount. The inspection is carried out by local authorities. They are required to provide the results to law enforcement agencies. If the expenditure of targeted funds is not confirmed by documents, a criminal case may be opened.
Plot of land for families with three children
A family with three or more children can count on receiving a free plot of land (according to Article 39.19 of the Land Code of the Russian Federation).
To receive land, all family members must be citizens of the Russian Federation, the parents must be officially married, but if there is only one parent, the family can also apply for a plot. None of the family members should own a land plot with an area of more than 6 acres. In practice, large families have to wait in line for years for a plot of land - there are always a lot of people who want to get a free plot.
SergeyAkinshinForumHouse Member
Now, as a large family, we are standing in line to receive a free plot of land in the area of number 700. We can wait a very long time for this land in Odintsovo (from 5 years).
But the chances of getting land for free are very high, and many members of our portal have successfully realized this chance. Different regions have different opportunities for realizing this legal right of large families; in some places they provide plots of 6 acres, in others 15 acres, on average the size of such a plot is 10 acres.
Dimetra84FORUMHOUSE Member
In Krasnogorsk, 100 families have now received plots of 8 acres in the Krasnogorsk district itself. The rest will be given in the Klin region, but 15 acres each.
In a number of regions, instead of land plots, “land certificates” have been issued for several years now: their number and the amount of funding are determined annually by the regional government before forming the budget. As a rule, all large families are registered as eligible for social support, and notification of the opportunity to receive a certificate comes to them by mail. If not yet, you need to write an application for registration with local authorities. In different regions, the subsidy amount is 200-300 thousand rubles.
Industry prospects
According to the World of the Older Generation association, at the beginning of 2018, about 630,000 older people needed inpatient care in specialized institutions. It is expected that by 2025 the public care system will not be able to cope with demographic changes, either financially or organizationally.
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Taking into account the statistics on aging, we can say that the state is clearly not coping. The need is growing, and if we add the economic component for the country as a whole, then we can confidently say that only private business can solve this problem.
Given the current level of income of the population and the size of the average pension, it cannot be said that business will certainly be profitable. However, there is definitely a pent-up demand for these services. The choice of approach may vary, but in general, payback can be expected no earlier than in five years, and the average profitability varies from 5% to 18%. The main thing is to understand the possibilities and take into account existing developments. Here are a few lessons we learned from our experience:
- when developing a business model, you need to decide who you are going to serve: guests who are able to care for themselves, disabled people, bedridden people or elderly people with mental disabilities, for example, with the most common disease - dementia;
- revenue depends on occupancy, and that, in turn, on the season; the average percentage with a favorable arrangement is about 75-85%;
- the location of the facility affects the cost of services and profits, and the calculated price of accommodation and subsidies depends on the region itself;
- the network provides more advantages; also, do not underestimate investments in advertising and reputation;
- There will always be difficulties in finding qualified and experienced employees; it is easier to “grow” them yourself;
- you can combine the location of both social and commercial places in one establishment (through building relationships with the government customer), thereby increasing your stable occupancy, since commercial guests, as a rule, are accommodated by relatives temporarily, and social guests - permanently.
The author's opinion may not coincide with the editor's point of view
Mortgage repayment compensation
Large families have another great opportunity to improve their living conditions this year: you can receive 450,000 rubles from the state to pay off your mortgage. According to Federal Law No. 157-FZ dated 07/03/2019 “On measures of state support for families with children in terms of repaying obligations on mortgage housing loans (loans)”, this money can be received by every family in which the borrower from 2021 to 2022 a third (fourth, fifth, etc.) child was born or adopted. But if the third child is born before 2021, the family is not included in the program.
A family can receive money under this program once and to repay only one loan, if the amount of the mortgage debt is less than 450,000, the rest of the money will simply “burn out” and cannot be used anywhere else. Therefore, people try to pay off a mortgage (including on a plot of land for building a house) with a small balance with their own funds, take out new loans, and pay it off with this compensation. To receive it, you must present to the bank documents about the birth of the child and his citizenship (the child must be Russian).
Types of government assistance
We can distinguish two types of state aid in the case of subsidies:
- Targeted payments for the construction of a residential building.
Here it is understood that money is issued before the start of construction activities. Together with the housing commission, citizens approve the directions for using the funds provided. The payment is received based on the estimate. The document is provided by the applicant who applied for the subsidy. - Compensation.
An individual receives funds after all construction activities. The time allocated for receiving payments upon completion of construction is 2 years.
Note 3.
Mixed subsidies are sometimes practiced. The applicant receives part of the money before construction begins, and part after.
Mortgage for house kits
But this is an interesting opportunity not only for large families, but in general for all people who want to live in an individual house: from July 1, 2021, banks should have new preferential mortgage programs for wooden houses made from factory structures. The difference between preferential and market mortgage rates to banks is compensated by the state.
Types of subsidies
According to regulatory documents, there are two types of preferences for building a house from the state.
Important! The targeted subsidy is calculated and issued for a specific finished house project. It cannot be used for other family needs.
Accordingly, as mentioned above, there is a targeted or compensatory subsidy.
- A targeted subsidy is issued for the construction of a house before the start of construction work. The amount of payment is determined according to the prepared estimate. The maximum payment parameter is determined by the prices of building materials in the specific constituent entity of the Russian Federation where the residential building will be built.
- Compensation payments are a subsidy that is paid to citizens after completion of construction work and is intended to replenish the funds spent on building a house. These preferences are also regulated by the regional authorities of the constituent entity of the Russian Federation. The legislation establishes an important condition for the owner of a built house - you need to apply for money no later than 24 months after completion of construction.
The subsidy can be issued as compensation for an already constructed house, provided that it meets all the requirements laid down in the program
Far Eastern hectare
Every citizen of Russia has the opportunity to receive a free hectare of land in one of the regions from this list: in the Amur region;
- In the Jewish Autonomous Region;
- In the Kamchatka region;
- In the Magadan region;
- In the Primorsky Territory;
- In the Republic of Sakha (Yakutia);
- In the Sakhalin region;
- In the Khabarovsk Territory;
- In the Chukotka Autonomous Okrug. In Buryatia
- In the Transbaikal region.
For the first five years, the land is given only for use “for any type of activity not prohibited by Russian law,” but if you build a house on the site, the land can be registered as ownership immediately.
In the summer of 2012, the program will expand to Arctic “hectares”: plots will be available in North Karelia, the Arkhangelsk region, the Yamal-Nenets Autonomous Okrug, the Nenets Autonomous Okrug, the Murmansk region and in some settlements in other regions of the North.
Regional programs
As already indicated, federal legislation allows regions to make their own adjustments to issues of housing subsidies. For example, in Omsk, Irkutsk and Novosibirsk regions, in addition to assistance in construction, citizens are allocated land in rural areas.
The maximum size of a free plot is 15 acres. Upon receipt of land, construction must begin within a year. If the deadlines are not met, the land may be revoked and become government property again.
What to expect next
Residents of the countryside, for the most part, are not paternalists at all and are accustomed to relying on their own strengths. But, as we see, every year the Russian government adopts new programs to support individual housing construction, and many of our users successfully participate in these programs. We will continue to talk about the opportunities to receive benefits or other preferences that the state provides for the purchase or construction of a house on land.
Read on FORUMHOUSE about the new government program for supporting housing investment, get acquainted with the experience of building a house with a mortgage. Participate in a discussion of the opportunities and risks of rural mortgages.
Reasons for refusal of help
Payments are transferred only if all conditions for participation in the subsidy are met.
Failures are usually due to:
- provision of false information (documented);
- non-compliance with funding requirements;
- submission of an incomplete package of documents or papers with errors.
The applicant, if there are these shortcomings, can apply again after they have been eliminated.
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