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Your Russian And Want To Borrow To Buy An Apartment

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Part of an email I received from someone buying a small apartment just outside Moscow for her mother to live in.

USD 40000 for 15 years with 11% annual interest. So, now I can look for the apartment for USD 60000.

For this price we can get a small one (1 room, kitchen+bathroom) about 15 km out of Moscow.

There will also be additional costs, like bank fees, estate agent and notary charges, etc. which will total approx. 2500-3000.

Just imagine interest rates here at 11% and corrosponding savings rates.....what price houses then :ph34r:

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Part of an email I received from someone buying a small apartment just outside Moscow for her mother to live in.

USD 40000 for 15 years with 11% annual interest. So, now I can look for the apartment for USD 60000.

For this price we can get a small one (1 room, kitchen+bathroom) about 15 km out of Moscow.

There will also be additional costs, like bank fees, estate agent and notary charges, etc. which will total approx. 2500-3000.

Just imagine interest rates here at 11% and corrosponding savings rates.....what price houses then :ph34r:

Russian inflation at 10.9% for 2005 so 11% is a good borrowing rate - but I think there are other "risks"

Edited by Sisyphus

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Russian inflation at 10.9% for 2005 so 11% is a good borrowing rate - but I think there are other "risks"

Yup, the mayor of moscow (Yuri Mikhailovich Luzhkov) is big on 'redevelopment', not least because his wife is a billionaire thanks to the construction industry. They have the habit of taking over parts of the capital and knocking them down for high rise offices and apartments. This is not slum clearance by any means, it's no different to requisitioning Belgravia, razing it to the ground and then building the Shard or Gerkin in its place, built by his cronies and then owned by his cronies.

As one 'owner' commented - "In Russia you own nothing, state owns four walls and you own the air between them". If a place burns down to the ground then you lose all rights and the land automatically reverts to the state, unsurprisingly there are numerious spontaneous combustions each year and people have taken to hiring private security guards.

Edited by BuyingBear

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Russian inflation at 10.9% for 2005 so 11% is a good borrowing rate - but I think there are other "risks"

10.9% IR is in local currency. 11% rate mentioned above is on the sum you borrow in USD if I am not mistaken, so high local inflation would not help you. Weak dollar would though.

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10.9% IR is in local currency. 11% rate mentioned above is on the sum you borrow in USD if I am not mistaken, so high local inflation would not help you. Weak dollar would though.

You are mistaken - you cannot borrow USD to buy a property in moscow. what you have to do is to borrow the local currency equal to USD price and then pay back in local currency. But it's not to bad - they have a very high salary inflation. <_<

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10.9% IR is in local currency. 11% rate mentioned above is on the sum you borrow in USD if I am not mistaken, so high local inflation would not help you. Weak dollar would though.

who in their right mind would pay 11% to borrow dollars - that would be a RUB rate.

unless 11% is the local mafia "stamp duty".

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
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      • up 5%



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