Brusnika Development: 13 New Towns Join Home Trade-In Program

4 March 2020 (09:10)

UrBC, Yekaterinburg, March 4, 2020. The housing developer Brusnika expanded its own home trade-in program to satellite towns near Yekaterinburg, Novosibirsk, Tyumen, and Surgut, the company’s press service reports.

‘Last year’s economic recession and increased government regulation in the housing construction sector (the launch of project financing and escrow accounts) made Russia’s construction market shrink a bit, which resulted in rising housing prices. According to DOM.RF, 28% of all the apartment buildings currently under construction or recently commissioned in Russia (2,790 buildings, or every one in twenty hosing projects) get financed through escrow accounts at the moment. Additionally, new mechanisms making home ownership more affordable appear as well: lower interest rates on mortgages and special terms for escrow funding involving federal subsidies for multiple-child families, among other things. Also, you can now rely on the developers’ home trade-in programs instead of applying for a mortgage. This means you can use your existing property as an investment. The exchange is available to every home owner with a place in an apartment building,’ the company says.

Brusnika has been running its home trade-in program since 2009. In the last decade, the developer has bought out/traded in some 4,500 apartments in Yekaterinburg, Novosibirsk, Tyumen, Surgut, and Vidnoye, Moscow Region. The process is part of the developer’s business and new home sale cycle. Brusnika buys your existing home on fair terms, gets the title on the property, and then uses the money to fund the construction of a new apartment in one if its housing projects. You can pay out the rest in installments or apply for a small mortgage. An existing home sells for RUB 3 million on average; the buyout price is comparable with the local market value of the property.

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