In Search of Profit: Private Investors See Increased Demand for Near-Zero Rate Mortgages

A new trend has emerged on the Moscow primary real estate market: short-term mortgages with a near-zero rate have become increasingly popular among private investors. Despite high rates and a significant burden on the budget, a number of mortgage programs remain a popular tool for purchasing housing.

As Yulia Arkhangelskaya, head of the commercial services department of the development company Mangazeya, told MK, based on data received from partner brokers, currently about 7-10% of clients in Moscow are purchasing housing with the help of short-term mortgages specifically for investment purposes. Moreover, this share has grown by 1.5 times compared to the beginning of the year. Among the most active investors are clients from Kazan, Omsk, Novosibirsk, Samara. They are united by a similar profile: two or three real estate properties in ownership, a small business or a stable income, the desire to preserve capital in a reliable asset.

First of all, such programs with an average rate of 2.49% to 5.99% for the first 1-2 years allow you to fix a favorable price for an apartment at the time of purchase and minimize monthly payments, the expert explained. According to the calculations of the online calculator, with a down payment of 50% and an apartment cost of 17 million rubles, the monthly payment will be about 62 thousand rubles. This makes this format more attractive compared to installment plans or family mortgages - especially if the purpose of purchasing real estate is an investment, she concludes.

It is also important that from a legal and financial point of view, an object purchased with a mortgage is easier to resell, Arkhangelskaya adds. Unlike installments, where the assignment process may be accompanied by a number of restrictions, a mortgage object can be quickly sold on the market. This is especially relevant in conditions where the heads of the country's largest banks predict a reduction in the key rate to 15% in the next 12-18 months. Let us recall that during SPIEF-25, Sberbank CEO German Gref said that by the end of the year the key rate could fall to 15-16%. This creates the potential for refinancing and exiting the deal with a greater profit.

The financial context also plays into the hands of short-term mortgages. According to Arkhangelskaya, while bank deposit rates have already begun to decline — in some banks they have dropped to 15-16% — real estate investments continue to demonstrate high profitability. At the stage from the foundation pit to the monolith, the growth in the cost of a square meter in some lots reaches 30%. And even taking into account mortgage payments, the buyer remains in the black.

However, even with a visible benefit, in order to avoid a crisis situation, the expert recommends not exceeding 50% of the total family income for a monthly payment, and also creating a safety cushion for at least 3-6 months. "This will help maintain financial stability even with a decrease in income or a change in life circumstances," the specialist emphasizes.

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