Housing for a young family. Who is entitled to benefits when buying an apartment?

How can a pensioner get a mortgage?

Our country has long practiced issuing mortgage loans to the population. It so happens that clients are most often young people or young families. This is not surprising. Firstly, many young people, having graduated from educational institutions and started earning money, have a desire to make their lives more independent, and, consequently, to move out of their parents’ apartment. Secondly, young families are the most common category of citizens applying for a mortgage loan, especially for those families that have more than one child, since maternity capital can be made as the first payment on the mortgage. Both are united by one factor – youth. Yes, no matter how crazy it may sound, it is much easier for young people to get a mortgage loan to buy a home than for people over fifty. To a greater extent, this is due to the long term of the loan, and, consequently, an increase in the amount that will ultimately need to be paid through interest. And also with the solvency of pensioners, since it is often difficult for pensioners to find work. But first things first. In our article we will dwell in more detail on the issue of mortgage lending to persons who have reached retirement age.

Deadlines

You can apply for a tax deduction at any time from the moment your right to a benefit arises.

For young families, the deadline for applying for a subsidy is before both spouses turn over 35 years of age.

Other benefits are issued depending on the applicant’s needs and the need to improve living conditions.

Obtaining benefits can be fraught with difficulties, since local authorities do not always have available funds to provide beneficiaries with the necessary support. One should also take into account the possible incompetence of officials, deliberate delays in the process of benefits, and abuse of rights. In a conflict situation, you should challenge the right to benefits through administrative proceedings and promptly seek the help of a lawyer.

Pensioner and mortgage

For any bank involved in this issue, issuing a mortgage loan to a pensioner is a very sensitive issue. If young people go through an almost standard registration procedure typical of any bank, then for pensioners banks pose additional risks, which can subsequently lead to non-payment of the loan and interest on it. Bank employees can also be understood, since for people of retirement age there are a number of obvious negative aspects (as loan applicants), which include:

1. The age of a person of retirement age at the time of applying to the bank is more than 55 years. This is stated in Federal Law No. 173-FZ, which regulates the old-age retirement age for men and women in the Russian Federation. This age indicates a limited period of time during which the borrower will be able to repay the loan and interest until full repayment.
2. According to statistics, the mortality rate of people of retirement age and older is much higher than the same rate for, say, 20-30 year old people. The age aspect concerns men to a greater extent, since their life expectancy is on average about 65 years. Banks provide a special program for “reverse” mortgages for retired men. The average age of women reaches 77 years, so banks most often offer retired women to enter into a mortgage loan agreement according to the standard procedure.
3. Do not underestimate the psychological aspect in a bank’s decision to issue a loan. Often, the psychological state of citizens of retirement age differs significantly from the similar state of young people. The accumulation of age-related and chronic diseases can lead to partial or complete loss of capacity, as well as to a weakening of the general background of the body. The most dangerous type of disease at this age can be dementia - this is an irreversible, often genetically transmitted disease against the background of a general mental disorder. It may be accompanied by schizophrenia, memory loss (long-term or short-term), hallucinations, dementia or delusions. The bank sets itself the goal of identifying this violation when communicating with a potential borrower, since identifying such a problem at an early stage will save bank funds later (that is, banks try to reduce the risks of non-payment of the loan to a minimum).
4. In connection with the possible characteristics of older people described above, banks set themselves the goal of checking you as much as possible in order to reduce their own risks. Very common cases of pensioners applying for a mortgage loan are loans for their children, grandchildren or relatives who are unable to purchase an apartment on their own. In addition, cases of fraud have become more frequent when a pensioner receives approval for a mortgage loan application, but after receiving the funds transfers them to third parties. Accordingly, a situation arises when the pensioner has no money and has not bought an apartment. Therefore, do not be surprised at the bank with questions about the intended purpose of the loan funds. Bankers usually find out your “ultimate” loan purpose and then try to confirm it before making a final decision on whether to issue a mortgage.
5. When reaching retirement age and receiving a pension, many people stop working, that is, they do not have additional sources of income. For the bank this is a determining factor. At the same time, pensioners are entitled to benefits, which allows them to significantly save personal finances. The client's solvency is the most important aspect when making a positive decision on a loan. But if you have finally decided for yourself that you need a mortgage and you will take it anyway, then the best solution is to attract guarantors, and preferably two. In the eyes of the bank, a guarantor is a direct and fairly strong reduction in possible risks.

Military personnel

This category of citizens has special conditions. What benefits do they have when buying an apartment? The first thing to note is that the amount of assistance depends on the period they serve.

You can apply for a subsidy:

The subsidy certificate can be used with other government assistance.

Mortgage and military pensioners

If you are not just a pensioner, but have the status of a “military” pensioner, then the state has prepared a number of concessions for you, which, firstly, will help in approving the loan, and secondly, will help in repaying both the principal amount of the debt and interest on loan.

Legislatively, Federal Law No. 76-FZ of May 27, 1998 enshrines the special status of military pensioners, which provides for the availability of targeted programs to assist in the purchase of housing. Thus, military pensioners with a total service record of more than 10 years are entitled to subsidies in the form of monthly cash payments, which you, in turn, can only spend on repaying a mortgage loan from the bank.

In addition, another Federal Law No. 117-FZ dated August 20, 2004 regulates the ability of a military pensioner to use savings funds that were formed on a personal account under the housing support system for military personnel. But, it should be remembered that these funds can only be spent to improve living conditions.

What is a reverse mortgage?

A little earlier, we mentioned that reverse mortgages are most often available to retired men. This type of mortgage is designed for people with low incomes. Before the death of a pensioner, the bank transfers funds to his account, thereby, as it were, increasing the citizen’s monthly income. But after death, the collateral (the apartment itself) becomes the property of the bank. But another option is also possible: the relatives of a deceased pensioner can challenge the contract, but at the same time they will be obliged to pay the bank the full amount of funds spent by him.

The most important negative feature of this type of mortgage is that often the cost of the apartment is disproportionately higher than the total amount of funds paid by the bank to the pensioner before his death. It is not uncommon for death to occur after a few weeks or months, but according to the agreement, the collateral, that is, the apartment, became the property of the bank. In addition, the bank sets high interest rates, so if relatives want to buy the deceased’s apartment, the amount of compensation to the bank will be disproportionately higher than the funds spent by the bank.

The positive aspect of this type of mortgage is that if the pensioner continues to live after the expiration of the contract, then he, naturally, ceases to receive monthly payments from the bank, but retains ownership of the apartment.

To summarize, we can say the following: before a pensioner thinks about a mortgage, everything should be carefully weighed and assessed. Debts can be inherited by relatives when concluding a regular mortgage, and in the opposite case, the property can become the property of the bank.

“Young Family” program in 2020 - mortgage conditions

In 2020, various banks across the country are ready to provide mortgage loans to young families with government support, launching loan programs with reduced interest rates, which is beneficial for borrowers.

“Young Family” at Sberbank – conditions for participants

The basis for receiving government assistance for the purchase of housing is the family’s need to improve housing conditions. If a husband or wife owns residential property, they will not be eligible for the federal program.

These funds are not given to spouses in cash, but are issued in the form of a separate certificate. It can be presented to a financial institution and the loan amount can be reduced. The money will be transferred directly to the bank.

Young families face the most pressing issue with their own housing. Young people are not able to save up to buy an apartment, which is due to the constant rise in prices on the real estate market. As a result, they often have to live with their parents or rent housing. In 2020, there are various government support programs, in particular a mortgage for a young family based on a social government program.

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If the spouse went on maternity leave – the benefits of the “Young Family” program

Previously, with the help of state support, it was possible to buy housing on the secondary market, cover part of an existing mortgage, or repay a consumer loan to build a house. Currently, with the help of a housing certificate, you can only become a shareholder in a residential building under construction or contribute it when purchasing an already completed apartment from the developer.

The state project of preferential subsidies for young families is free of charge. All newlyweds who have entered into an official marriage can participate in this program. However, the law within the framework of this mortgage initiative clearly distinguishes between the categories of citizens who are eligible to receive preferential housing.

Benefits for the purchase of housing are one-time, and the procedure for obtaining a mortgage is lengthy and complex. If you fail to repay your housing debt, there is a high risk of losing your property. When purchasing an apartment under the state program, you should remember the established restrictions on living space per person.

What can you get for a mortgage?

There are several types of government assistance in subsidizing newlyweds with living space. The main ones are the “Housing” and “Young Family” programs. Each of these loan packages has its own characteristics and terms of receipt.

Detailed conditions of the program to help young families are developed at the level of regional legislation. Despite the fact that this project was developed at the federal level, the constituent entities of the Russian Federation co-finance housing payments provided to citizens.

• the age of the spouses or single parent does not exceed thirty-five years - and not at the time of submitting documents, but on the day officials make a decision on their participation in this social project;
• young spouses (single parents) have: either a sufficient amount of their own savings with which they can pay the seller - in the amount of the cost of housing not covered by payments from the state;
• or significant regular income that will allow them to take out a loan for these purposes;

Package of documents

The new project has several goals. One of them is a significant reduction in the cost of residential premises, so that almost any young family (and other preferential categories specified in the document) can not only acquire real estate, but also regularly improve its quality - once every 15 years. To achieve this, in particular, the price of an average two-room apartment (54 sq.m.) by 2025 should be 2.3 times the total annual income of a family of three people. That is, if, for example, after 8 years a wife, husband and child live on 50,000 rubles a month, or 600 thousand a year, they should have the opportunity to purchase living space for 1 million 380 thousand rubles.

In this direction, you can take advantage of the state program “Young Family”. Preferential lending is provided by the participating banks themselves. Also, spouses have the opportunity to use the received maternity capital. Funds are distributed to partially or fully repay the mortgage.

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There is a program to provide housing for young families. you stand in line and wait! when yours applies, you will be given a certificate for an amount determined by the state (usually at least 30% of the average cost of housing in your region and based on the number of members of your family). and you can borrow the rest of the amount at a preferential interest rate.

Preferential housing for young people: assistance to families

When participating in the state housing program, a payment is provided that is at least 30% of the value of the property. For a young family with a child, the amount of benefits increases to 35% and by 5% with the appearance of each subsequent child. That is, young families who already have two children can purchase real estate with a 40% discount.

Mom will receive a certificate - a paper that gives the right to a specific amount of maternity capital. Then you can decide where to spend it. To dispose of maternity capital, you need to submit another application - for disposal. They indicate a specific goal there. It is also served electronically or in person. The pension fund will study the documents and transfer the money for its intended purpose, for example, paying off part of the mortgage for the family.

Are there any benefits for utilities for those who pay a mortgage?

The city authorities believe that Muscovites, with their average salary of 10.5 thousand rubles a month, cannot pay 100 percent of their rent and utilities out of their own pockets. Moscow plans to cross this milestone no earlier than in 2008.

And the Moscow region, with wages of 9 thousand rubles, crossed it on January 1, 2005. Governor Boris Gromov is confident that the powerful social protection mechanism developed by the government will soften this blow to the family budget of the region’s residents. Thanks to him, the authorities hope, the standard of living of the population will not decrease. And in order for every regional resident to know what kind of help his family can count on from the regional budget, the government of the Moscow region has prepared answers to possible questions. Today we introduce RG readers to some of them.

Who can take advantage of the benefits

Only these categories of citizens have benefits for purchasing housing. This:

• young families;
• large families;
• young scientists;
• young teachers;
• young rural workers;
• military personnel.

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Now it’s worth understanding under what conditions benefits are provided.

Benefits when buying an apartment with a mortgage

For example, the so-called “cross-subsidization”, when enterprises took on part of the population’s costs. In accordance with the decision of the Government of the Russian Federation, cross-subsidies have now been eliminated when setting tariffs for heat supply services and partially for water supply and sanitation services. The increase in tariffs was also affected by the introduction by the Russian government of an 18 percent value added tax on services for the maintenance and ongoing repairs of housing.

In addition, in 2005, tariffs for the services of natural monopolies increased both for the population and for organizations providing housing and communal services, in particular, water supply, sewerage, electricity, and gas. In accordance with the requirements of federal legislation, an independent examination of tariffs for housing and communal services was carried out for the first time in 2005, which confirmed their economic feasibility.

Federal legislation planned to reach 100 percent payment for housing and communal services back in 2003. But only two years later the regions were ordered to do this. In this regard, this year’s federal budget no longer includes funds for the payment of compensation to housing and communal services enterprises, which, of course, affected the growth of tariffs.

— What is the increase in prices for the population for housing and communal services in the Moscow region?

— Since January 1, 2005, compared to December 2004, they have increased by an average of 28.5 percent.

— Can we hope that the transition to 100% payment for housing and utilities will ensure their high quality?

— The legislation of the Russian Federation provides a mechanism for protecting citizens from poor quality work of the public utility complex. If a citizen is provided with housing and communal services in violation of their list, volume and quality, then the amount of payment must be recalculated in accordance with the methodology approved by the government of the Russian Federation.

The procedure and conditions for reducing payment for utility services when they are provided in poor quality or incompletely are determined by the “Rules for the provision of utility services”, approved by Decree of the Government of the Russian Federation of September 26, 1994 N 1099 (as amended) and the rules for payment by citizens for housing and utilities, approved by Government Decree dated July 30, 2004 N 392. Based on these rules, most municipalities of the Moscow region have developed local regulations on reducing utility bills in the event of low quality performance.

— How to save on payments for housing and communal services?

— Installation of in-house and intra-apartment meters for water, heat and gas consumption allows you to seriously save these resources and leads to a reduction in utility bills for citizens, which are calculated by meters. Therefore, it makes sense to install meters. All housing and communal organizations must post prices for the installation, maintenance and repair of household meters (water, heat, electricity, gas), as well as the procedure and conditions for carrying out these works.

Regarding the installation of gas meters, you must contact the interdistrict gas trusts of the State Unitary Enterprise MO Mosoblgaz, heat and electricity meters - to local energy supply organizations and OJSC Mosenergo, water meters - to local water utilities and MGUP Mosvodokanal, and also to local governments.

— Can housing and communal services workers, under any pretext, refuse to install an individual hot and cold water meter?

- Can not.

— Are measures being taken in the region to limit the growth of payment rates for housing and communal services?

— On February 1, 2005, the government of the Moscow region adopted a resolution in which the heads of municipalities were recommended to take measures to limit the increase in payment rates for housing and communal services by the population in 2005, in relation to the level of payment rates in 2004, within fifty percent.

The Committee for Social Protection of the Population of the Moscow Region has been tasked with ensuring uninterrupted service to citizens applying for benefits and subsidies to pay for housing and communal services; control over their timely and complete provision to citizens; simplified procedure for obtaining subsidies for housing and communal services.

— What work is taken into account when determining the amount of payment for housing maintenance (maintenance)?

— An approximate list of services related to housing maintenance and paid for through housing maintenance fees is approved at the federal level.

It includes the following works:

• maintenance of the common property of a residential building (including basements, attics, entrances and roofs) and the local area;
• removal of household waste;
• work performed during technical inspection and inspection of individual premises of residential buildings, including the elimination of minor faults in water supply, sewerage, central heating, hot water supply and electrical devices systems and other work;
• work performed in preparing residential buildings for operation in the spring-summer period, as well as the autumn-winter period;
• other types of work.

— Does the number of floors affect the cost of housing and communal services?

— No, there are no discounts for the number of floors.

— Are there any benefits for paying for the maintenance and repair of privatized housing?

- No, they are not provided.

— Where to go if the housing and communal services operating organization does not respond to citizens’ complaints about the poor quality of services?

— To the Ministry of Housing and Communal Services of the Moscow Region by phone 200-36-49.

Providing housing subsidies to citizens

— Who can receive subsidies for housing and utilities?

— Subsidies can be provided:

• to a tenant of residential premises under a social tenancy agreement;
• a tenant of residential premises under a rental agreement in the state and municipal housing stock;
• a member of a housing, housing-construction cooperative;
• the owner of a residential premises (apartment, residential building, part of an apartment or residential building), including a member of a homeowners association;
• a citizen living in a dormitory;
• a citizen living in a state housing stock assigned to federal executive authorities that provide for military service;
• a citizen who has entered into an agreement for the free use of residential premises.

As well as members of their families registered together with them at their place of residence.

— Who is not eligible to receive a subsidy?

— Citizens living in residential premises on the basis of a rental agreement concluded with the owners of residential premises of a private housing stock, or a sublease agreement concluded with tenants.

— For how long is the subsidy provided?

- For six months.

— Who decides on its payment?

— Local government bodies of municipalities.

— What documents are needed for this?

— An application and documents on family composition are submitted to the local government body at the place of permanent residence; on the legal grounds for owning and using residential premises; documents confirming the income of the applicant and all family members for the 6 months preceding the submission of the application; documents containing information on payments for housing and utilities accrued for the last month before submitting the application, and on the presence (absence) of overdue debts for payment of housing and utilities; copies of documents confirming the right to benefits or compensation for housing and utilities of the applicant and all family members; copies of documents certifying the citizenship of the Russian Federation of the applicant and his family members.

— Which living family members are taken into account when calculating family income?

— All family members registered together with the applicant for subsidies. Married parents and their minor children, as well as spouses, are considered members of the same family, regardless of whether they live separately or together.

— When is the decision to provide a subsidy made?

— The local government body, no later than 10 calendar days from the date of receipt of the documents, makes a decision to provide or refuse a subsidy, calculates its size and informs about the decision made.

— What amount of income allows you to receive a subsidy to pay for housing and communal services?

— The subsidy is paid to those who have expenses for housing and communal services within the social norm for housing area and utility consumption standards above 22 percent of the total family income. Low-income citizens whose average per capita income is below the subsistence level established in the region, within the social norm for housing area and standards for the consumption of utility services, will pay 50 rubles per month per person for the provided housing and communal services. The rest of the payment is compensated from the budget.

— How is the cost of living established?

— This is done by the regional government quarterly for the main socio-demographic categories for citizens of working age, children, pensioners, as well as on average per capita.

— What can be the maximum subsidy amount?

— It should not exceed the actual family expenses for housing and utilities within the social norm for housing area (for a certain category of citizens, taking into account the available additional living space provided for health reasons) and standards for the consumption of housing and communal services.

— What is taken into account when calculating the amount of subsidies for housing and utilities?

— When determining the size of the subsidy, the family’s expenses for housing and utilities are taken into account according to the social standard for housing area, taking into account the available additional living space provided to citizens for health reasons, utility consumption standards (electricity, gas supply, including bottled gas, water supply, sanitation ( sewerage), hot water supply, heating, purchase and delivery of solid fuel in the presence of stove heating) and removal of household waste.

— Will subsidies be calculated based on the actual area of ​​housing and the consumption of utilities?

— The calculation of the size of the subsidy is based on the social norm for housing area and the standards for the consumption of utilities for a particular family. Consumption standards and payment rates for housing and communal services for calculating the amount of subsidies are approved by local governments.

— How is the social norm for housing space determined?

— This norm was established by the regional law of December 30, 2004. For citizens living alone, it is 33 square meters. meters of total area, for a family of two people - 42 sq. meters, for a family of three or more people - 18 sq. meters for each family member.

— What is the size of the social norm for housing space for pensioners, disabled people and orphans living alone?

— For pensioners, disabled people and orphans living alone in a one-room, two-room or communal apartment, the size of the social norm for housing area is established based on the actual size of the occupied total area of ​​the living space, but not more than 42 square meters. meters of total housing area.

— Do benefits for housing and utilities affect the receipt of a subsidy?

- They don’t influence. But the amount of the subsidy provided cannot exceed the family’s actual expenses for housing and communal services within the social norm for housing area (for a certain category of citizens, taking into account the available additional living space provided for health reasons) and standards for the consumption of housing and communal services.

— Where and when should I apply if my family’s income or other conditions affecting the amount of the subsidy change?

— In the event of a change in family composition, place of permanent residence, temporary departure of family members, or change in income, the recipient of the subsidy is obliged to notify the local government within 15 calendar days.

— What if the recipient of the subsidy, when the family income increases or other conditions affecting the amount of the subsidy change, does not report this to the local government?

— If this happened without a good reason, the funds transferred unreasonably as a subsidy are counted toward future subsidies, and if there is no right to receive a subsidy in subsequent months, the recipient will have to reimburse these funds. Otherwise, they will be recovered through the court.

— Do local governments have the right to check the information submitted by a citizen to receive a subsidy?

- Yes, I have the right.

— How often will the subsidy for housing and utilities be calculated?

- Monthly.

— How is the subsidy calculated if the recipient of the subsidy pays according to the meter?

— Based on consumption standards, including in cases where meter readings are lower than consumption standards for the corresponding services.

— How is the subsidy calculated if several types of fuel are used for heating?

— When calculating the cost of utility services, the cost of one (main) type of fuel is taken into account, determined by the local government of the municipality, taking into account local characteristics.

— If the recipient of the subsidy enjoys benefits in paying for housing and utilities, will this affect the amount of the subsidy?

- Will not be.

— What is the subsidy payment mechanism?

— The subsidy is transferred to accounts in banks chosen by the recipient of the subsidy, or in the form of demand deposits. The transition to transferring subsidies to personalized accounts of citizens will take place during 2005. If the recipient cannot, for health reasons, age, walking distance or transport inaccessibility, open a bank account, local governments must decide on the delivery of subsidies through communications organizations (mail) or in another way.

— What can be paid for with the subsidy?

— Payment for housing and any types of utilities. In this case, the specified payment is made in full (without reduction by the amount of subsidies).

— In what cases does the subsidy stop?

— This happens if conditions change (place of residence, family income, family composition) affecting the right to receive and the amount of subsidy payment; provision of knowingly false information that is essential for the provision of a subsidy or determination of its size; failure to repay housing and utility bills on time in the absence of a valid reason for non-payment; failure by the recipient of the subsidy and his family members to fulfill the obligations stipulated by the agreement concluded between the local government body and the recipient of the subsidy.

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Interest-free mortgage for home purchase in 2020

The program is intended for families in which a second or subsequent child was born after 01/01/2020. It does not matter when the mortgage loan was taken out, the bank is obliged to accept documents to subsidize the interest rate if the family has grounds for this.

How to get a mortgage

• passport of one of the spouses in whose name the mortgage is issued;
• Marriage certificate;
• birth certificate of all minor children;
• other documents confirming family membership (certificate of paternity, etc.).

Not all banks work with this program; check with your bank branch about joining the state program. Otherwise, you will need to go through the refinancing procedure with another bank to be able to participate in the program.

In addition to these factors, it is necessary that the salary of future borrowers is not lower than the subsistence level established by the authorities of the region of residence. Not a single bank will approve a mortgage, even with state support, if the borrowers lack the solvency.

Are there any benefits for utilities for those who pay a mortgage?

Tatarov, who managed to issue whether there are benefits for utilities for those who pay a mortgage

There are a lot of terrorists in the police.
This deadly consideration has already been brought to the attention of the central committee of the Socialist-Revolutionary Party, often cited by us S.-R., and
then Burtsev.
As for Tatarov’s lifestyle and revelry, we think that Azef reveled not less, but much more than him, and that not only the guards, but also some members of the c. were aware of Aeef’s revelry
.
c. party s.-r. It is also unclear why the murder of Tatarov, committed by order of the central committee of the Socialist-Revolutionary Party. in April of the year, it was officially recognized as a matter of benefits
only after it declared Azef a provocateur, that is, only in February of the year.
Central Committee of the Socialist-Revolutionary Party did not even want to enter into communication with Menytsikov and receive
other revelations from him; for this it was only necessary to publish in Revolutionary Russia what was fulfilled by well-wishers
. Such an announcement did not appear in Revolutionary Russia. Why? communal
answer to this question is given by Chernov. The request for an announcement in the New Time could not be relevant, because it had to be done in Russia. Conclusion of the judicial commission of inquiry, page This strange
service
implies that the central committee of the party, living across the border, does not there were even enough connections in Russia to place a simple ad!
But the most curious thing is that Menshchikov did not ask for
an advertisement to be placed in New Time, as can be seen from the exact text of his letter given by us.
In Revolutionary Russia, no answer was given to Menshchikov either, that is, the technicians
, simply put, did not want further revelations.
Menshchikov
’s letter, printed in the Conclusion of the Judicial Investigation Commission, four more Bar., Fre., Nikolaev and Faith.
As if the increase in the number of extraditions of Tatarov made his provocateurism even more convincing?! In the year it was also impossible to
pay attention to the central committee of the Socialist-Revolutionary Party.
to the numerous failures that befell all preparations for the uprising in St. Petersburg, the explosion of the bridge on the Nikolaevskaya railway was not completed
, there was no explosion of the security department, electrical, telephone and lighting wires, the arrest of a citizen,
are there benefits for utilities for those who pay a mortgage
to Witte and other things, also could not be carried out

05.09.2018

Knowledge of the features and rules for calculating and deducting taxes both during the acquisition and sale of a home will provide an opportunity to save and optimize losses when completing a transaction.

This is not only about benefits and taxes during purchase and sale transactions. Taxes on the ownership of various property (including real estate) are calculated from individuals every year. In this case, money is collected from the owners, but now we are not talking about these taxes.

It is known that when receiving any income, a person, being an individual, must give part of it to the state as a tax. Receiving a sum of money after selling an apartment is income, so the standard personal income tax rate applies to it, that is, 13 percent.

However, fortunately for individuals (who are the buyer and seller in this situation), and in order to ensure the growth of the real estate market within the country, the government was able to create and provide many benefits as tax deductions. Most of these benefits can significantly reduce the tax base during the sale and purchase of apartments. Some cases generally make it possible to reduce the consequences of a transaction to a situation where the tax base may be absolutely zero.

The volume of the deduction is exactly the amount that will be deducted from the tax base, but this happens before the 13 percent tax is calculated from the remaining amount. At its core, the deduction is the very same tax benefit that can stimulate citizens to make decisions about buying or selling housing more actively and freely, without risking themselves and their finances.

Conditions

The following may count on receiving preferential terms for the purchase of real estate:

• personal income tax payers, regardless of status - a refund of part of the paid cost of real estate is possible after purchasing housing;
• military personnel, veterans and combatants, law enforcement officers;
• disabled people, including families with disabled children;
• large and young families.

At the local level, the list of beneficiaries may be increased. Young scientists or teachers who work in rural areas or remote regions can count on a subsidy for the purchase of housing.

A similar right applies to young specialist doctors, who are considered citizens no older than 35 years of age.

To receive benefits you will need to meet the following conditions:

• citizenship of the Russian Federation - exceptions are provided for resident foreigners wishing to return part of the income tax paid;
• confirmation of the fact of need for benefits;
• availability of relevant documents.

It is possible that there may be bureaucratic obstacles at the local level and a lack of available funds to provide benefits to citizens in need of housing.

Military mortgage, taxes and benefits

Types of deductions

Deductions can be different:

1. Standard
2. Property
3. Social
4. Professional

Trade transactions with apartments belong to the fourth type. In the process of selling an apartment, the selling party will simultaneously have to calculate both taxes (after all, this is undoubtedly the income that an individual received due to the sale of real estate) and tax deductions (leading to a reduction in the amount that is subject to taxes). As for the buying side, there are no tax charges for it at all, but only tax deductions, that is, a kind of financial benefits in the process of paying 13 percent of personal income tax.

Taxes and their deductions during the sale of a home

From what exact amounts should the interest on the funds received by the selling party be calculated, if we are talking about the sale of a home owned by this individual?

According to the law, the tax base until 2016 was formed based on the amounts entered into the sales contract by the parties. However, after 2016, taxes began to be based not on the named value, but on the cadastral value, since this is the value that is now closest to the market value.

Since 2016, the tax base during the sale of a home can be the amount that turns out to be greater - either the cost of the apartment noted in the DCT, or according to the formula according to the cadastral one, for this it must be multiplied by a factor of 0.7. But this only works for real estate purchased after January 1, 16 by someone who is now acting as a seller.

There are only two caveats to this rule:

1. If the value of the apartment according to the cadastre for some reason was not determined at the beginning of the year in which it is sold, then the tax base will be calculated in the standard way, that is, based on the amount stated in the purchase and sale agreement .
2. The reduction coefficient can be further reduced, but only in some regions of Russia (with permission and after agreement with local authorities), and a reduction is possible even to zero for special categories of citizens, and sometimes for everyone.

How to correctly calculate the cost of an apartment according to the cadastre

There's really nothing complicated about it. Just go to the official website of Rosreestr. They offer a special service that allows you to find out all publicly available information using one cadastral number of a specific apartment (or just by address).

If we talk about housing in new houses or if the housing was transferred to the seller after the assignment of rights of claim, when the ownership right has not yet been formalized, then the tax base will be the one noted in the agreement on the assignment of rights.

How to determine benefits for the selling party

The most important point here is the tenure of the home. If an individual owns an apartment for three years or more, then there is no question of paying personal income tax. Officially, this moment is called as receiving a tax deduction equal to the cost of the apartment.

However, since 2016, several important amendments have appeared to this article, and their essence is that the specified three-year period remains for the following types of apartments:

• donated;
• privatized;
• inherited;
• received under a dependency agreement.

As for the remaining apartments, for them this period is not three, but five years. This five-year period also applies to those apartments whose owners appeared in 2020. To put it in simpler and more understandable language, if the home became someone’s before 2016, then in such cases the old, three-year period applies.

Those who have been owners for less than the minimum period find themselves in less favorable conditions - if a person owns an apartment for less than 3 years (less than 5 according to the new rules), then taxes are charged, although it is also possible to reduce them: either a deduction of a million rubles, or a deduction equal to the original expenses for purchasing real estate.

The main purpose of the changes made to the legislation is to combat speculation in the primary housing market and create more comfortable conditions for those who buy real estate for themselves.

Some features

From 01/01/2010, even those who bought a share or an entire residential building, with or without an attached land plot for development, will be able to use their right to a tax break. The deduction is provided to those who can document the ownership of the land or part of it and the house.

If a citizen was unable to repay a loan taken from a bank, and this became the reason for obtaining a new loan to repay the old one (on-lending), then in this case he also enjoys the right to deduction. In the same way, you will have to confirm in an agreement with the bank the issuance of a loan for the purpose of purchasing housing, land for development, land with a house.

A tax benefit when purchasing an apartment with a mortgage is provided to working-age citizens who pay 13% of their income to the state in the form of tax. Therefore, unemployed citizens or those working without official employment cannot count on receiving a refund, since they do not pay tax to the state.

If you have any questions or require assistance in preparing documents to obtain a tax deduction, our online duty lawyer is ready to advise you free of charge.

Buying an apartment with a mortgage is often a very profitable and convenient solution, especially in cases where it is difficult for the buyer to pay the entire amount.

However, this event is still not cheap.

A completely reasonable question arises: is it possible to at least somehow save money by receiving benefits?

Are there any benefits when buying apartments on credit?

It is possible to get benefits when buying an apartment with a mortgage, but you need to take into account a number of nuances.

Only those buyers whose purchase amount does not exceed two million rubles .

In this case, an amount of thirteen percent of the cost of the apartment simply burns away - it does not need to be paid.

But until 2014, this opportunity existed only as a one-time option, i.e. a person could use it only once in his life.

Since January 2014, for citizens of the Russian Federation, this opportunity to receive benefits has become available when purchasing a new home (but not exceeding the established limit of two million rubles ).

The difference that does not need to be paid is nothing more than income tax, which falls on the shoulders of the participant in the act of purchasing and selling housing whose income exceeds expenses (the seller).

Features of receiving benefits

Benefits when purchasing a home are provided subject to some nuances.

The limited price of an apartment or house for the purchase of which benefits are issued should not exceed two million rubles .

In the case of a mortgage loan for housing, this amount is limited to three million rubles .

A subsidy is provided only if there are documents confirming the right to own an apartment, house, or housing plot (i.e., upon purchase of housing).

To receive benefits, a citizen of the Russian Federation must have official income, from which tax is paid to the state budget.

Otherwise, the buyer will be denied benefits for purchasing an apartment.

What does the law say?

According to the current legislation of the Russian Federation, the right to provide benefits for the purchase of housing is granted to any citizen of Russia who is officially employed and transfers an income tax of thirteen percent to the treasury.

Persons whose income tax is nine percent are not subject to tax when purchasing an apartment, house or housing plot.

In the event that a parent purchases housing and subsequently registers it in the name of his minor child, the amount of tax upon purchase is also deducted in the amount of thirteen percent of the cost of the living space.

In this case, the child retains the right to receive these benefits after reaching the age of majority.

Benefits when buying an apartment

A subsidy for the purchase of your own apartment can be obtained in various situations, having received appropriate documentary evidence of belonging to one or another preferential category.

Housing for young families

For young families, there is a special preferential mortgage program created to help newlyweds acquire their own home.

To participate in this program, the family must collect a list of documents.

Family members must meet certain criteria:

• Be no older than 35 years (at least one);
• Have a stable, fixed official income (and funds with which they can repay the mortgage interest rate);
• Be citizens of the Russian Federation.

Some features of this program are presented in the table below:

A young family must contact the local administration, which will make a decision on whether to participate in the program within ten working days.

Upon making a positive decision, the young family is issued a special certificate.

Read about how to get a mortgage for a young family at VTB 24 in this article.

Video on the topic:

The disadvantages of this program include:

• Availability of the program for families whose participants have a stable income;
• The mortgage limit is limited to 2.2 million rubles.

The issued certificate is valid only for the purchase of a primary home.

The purchased home becomes the property of the family only after the mortgage is paid in full.

Conditions for obtaining a property tax deduction

Has undergone changes since 2010. Today, property tax deductions can be used for the purchase of the following categories of real estate:

• Apartments,
• rooms,
• Residential buildings,
• Parts of a house or shares in an apartment,
• A plot of land for individual housing construction.

In addition, the property deduction applies to expenses aimed at repaying targeted loans for the purchase of the above-mentioned real estate, including interest on mortgage loans.

IMPORTANT, the tax deduction does not apply to land plots with buildings not intended for permanent residence, for example, garden plots with country houses.

Differences between state and non-state benefits

Based on the information above, it is clear that mortgage benefits are very different.

From the state you can receive the following:

1. Assistance in paying off part of the price of living space (maternity capital, young family program, transfers to military personnel, and so on).
2. Reduced loan rate when applying for an appropriate mortgage.
3. Selling housing at a social price.

At your place of work you receive the following benefits:

1. Special programs accompanied by a reduced loan rate for employees of large enterprises.
2. Subsidizing the down payment for the purchase of housing. This applies to young professionals. Further payments can be deducted from wages.
3. Refund of part of the personal income tax paid.

How to get involved

In order to become a participant in the program, you need to collect the necessary package of documents and submit it to local authorities.

After registering the application and checking the documents, the family must receive written notification within 10 days of permission (or refusal) to participate in the program. As funds are accrued, a certificate is issued certifying that the family is a participant. A subsidy for a young family is transferred to the owner’s bank account. These funds can be used as a down payment when obtaining a mortgage to purchase an apartment or to build a separate house. To pay for the loan, program participants are allowed to use maternity capital.

An epidemic of maternity capital fraud is raging in Russia →

How to get income tax benefits

To receive an income tax benefit when purchasing an apartment, you need to do the following:

Who is eligible for mortgage benefits?

Starting in 2020, government mortgages offer an interest rate of no more than 12 percent with a down payment of 20%.

As practice shows, such an offer is available to almost all categories of the population. The only condition is confirmed solvency according to the bank's terms and conditions.

We also note that government mortgages involve the purchase of exclusively new housing from construction companies that are accredited by a bank participating in the program. This situation significantly reduces the number of options available, but it is still an excellent opportunity to buy your own home.