Join date: Jul 11, 2022

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What did it lead to? Let's break down the new rules:

1. If earlier the developer built an apartment building at the expense of borrowed funds, now he must apply to the investment committee and receive project financing from the bank. This means that the developer does not implement the project at the expense of equity holders

2. The buyer's money is essentially on the escrow bank account. And access to profit - the difference between the cost of construction and the sale price - the developer receives after the commissioning of the object. This is important to understand.

3. The more the escrow account is filled with sales, the lower the project financing credit rate. It will be recalculated.

What does all of this mean? And the fact that yesterday the developer was extremely interested in quick money from equity holders to meet the needs of the construction site, but today it is no longer there. Previously, in order to attract money from equity holders at an early stage of construction, the developer gave a big discount. Now it's meaningless.

With the new rules, it is more important for the developer to ensure a large accumulated profit so that inflation does not “eat” it during the construction period. Therefore, from the start of sales, the developer essentially starts selling at the same prices as planned according to the business plan.

The bank quietly uses the money of equity holders in its own interests. Yes, on the one hand, he takes on the risks of investing in construction. On the other hand, all the buyer's funds come to the bank, and the buyer does not receive interest on them from the deposit. The bank uses these funds interest-free. Such a scheme completely “knocks out” those who used to play “investment in the foundation pit” from the market.


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