How Much Does It Cost To Privatize An Apartment

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How Much Does It Cost To Privatize An Apartment
How Much Does It Cost To Privatize An Apartment

Video: How Much Does It Cost To Privatize An Apartment

Video: How Much Does It Cost To Privatize An Apartment
Video: Apartment Expenses: How Much Rent Can You Afford? 2024, March
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The process of free privatization of housing, which at that time was all state or municipal property, began in 1991, and it was planned to finish it in 2007. However, the end date has been postponed several times and is currently the last date when citizens can purchase an apartment in ownership, set on March 1, 2015. But over the past quarter of a century, the conditions for maintaining their own housing have changed somewhat, and for many citizens, privatization no longer seems so attractive.

How much does it cost to privatize an apartment
How much does it cost to privatize an apartment

Free privatization cost

Until March 2015, you can get the ownership of an apartment that you rent under a social contract for free. After the specified period, it will only be possible to redeem it from the municipality that owns it. In doing so, market prices will be used. However, even those citizens for whom the procedure itself is still free, having become owners, are faced with the fact that the maintenance of the same apartment has become much more expensive for them.

Firstly, now they began to pay not the rent for the rental of residential premises, but the property tax, which from 2014 will be gradually replaced by a new one - real estate tax, the rate of which will depend not on the assessed value determined earlier by the BTI, but on the real one. market value of real estate. This means that the tax on apartments with the same technical characteristics will depend on where they are located. Those who live in the central part of the city will pay more than those who live on the outskirts. Especially the amount of tax will increase for residents of Moscow and St. Petersburg, where housing remains the most expensive in the country.

But even without tax, monthly payments for an apartment will increase, since now they take into account common areas: technical rooms, entrances, stairs, elevators. Since capital repairs of apartment buildings have also become the responsibility of homeowners since 2013, the amounts for these repair funds will also be included in the rent receipts. Naturally, in the event of a fire or gas explosion, owners of private apartments can no longer count on receiving new housing or subsidies for repairs from the municipality.

Pros and cons of privatization

With this state of affairs, many citizens who have not yet privatized their apartments are beginning to wonder whether it is worth doing. Of course, you can donate or bequeath a privatized apartment to anyone you want, it can be mortgaged for a mortgage loan for a new home. But, if your house is determined for demolition, you will receive the new housing exactly the same area as the old apartment, even if a large family lives in it. In the case when the apartment is not privatized, you can count on getting new housing in accordance with social standards. For Moscow, such a rate, for example, is 18 square meters per person. Living in a non-privatized apartment, low-income citizens can receive benefits and subsidies for utility bills, which is impossible for apartment owners.

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