Housing savings or Home loan is a better solution?

At the end of 2017, two types of state-supported housing self-care were available. The question arises as to which is the better solution (housing savings or Home Loan is better), which one should be worth investing in? Housing savings are already known, while the National Housing Community (Home Loan) is one ( old ) a new concept for the Hungarian market. The ultimate goal of both products is to bring customers to their homes with state support! In this article we look at why you should choose!

Both contracts are covered by state aid of 30%. The upper limit of the grant per contract is HUF 72,000 for LTP and HUF 300,000 for Home Loan.

What is Home Loan?

Home Loan

It was officially an English co-operative (with strong South American references), and it is a treacherous homeowner . The essence of this is that an organizing company (currently only Central Home Loan zrt. Can do such an activity) creates a community community of Home Loan with at least 120 people, where members are interested in the same preferential property.

Members can save on the same monthly commitment and optional ad-hoc payments . As soon as the community accumulates payments (minus the organizer’s reward) for the purchase of the apartment, they will draw an apartment among the members. The draw is preferred by the member who has made the most extra payments (first in Hungary, the member who has paid more for the community).

What kind of apartments can you buy?

apartment

Minimum of 10, maximum 15 years per month for members to deposit into the community’s cashier. Pre-named, between $ 10 and $ 40 million, will add new homes to community members. Due to the nature of the draw, there will be a member who will be living in the apartment after 15 years if the community still has a cover.

 

 

From the official calculation, it turns out to us …

  1. 26,000 / 166,666 = 15.6% of the monthly payment for a 15-year term
  2. The total deposit is higher than the contract value! With a 10-year maturity, we get less than 120,000 forints
  3. State aid is completely wasted by the state

 

The Home Loan is only available to members if they can get home as soon as possible. Beyond a critical point, the late home dwellers cause a loss.

 

Housing savings or Home Loan is better?

Housing savings or Home Loan is better?

It was at the very beginning that state aid was 30-30%, but the maximum amount per contract was 300,000 at Home Loan, 72,000 at home. However, the focus is on permeability per contract . While it is not possible to reproduce the contract in the case of Home Loan, we can also involve our family members in the case of LTP .

How much to pay?

How much to pay?

The 300,000 HUF state subsidy can be obtained in the case of housing savings with a contract with a maximum of 4.1 (HUF 20,000 per month). This number assumes 5 housing contracts, which we can get out of 5 × 72 000 HUF, ie 360 ​​000 HUF.

The advantage of the Home Loan is lost if we have a possibility to sign a contract for a minimum of 5 dwellings. If this is not possible, then Home Loan may be of interest from the point of view of state support, as a contractor can receive HUF 300,000 if he makes payments (HUF 1,000,000 / year).

 

We can see that for an Home Loan contract the annual amount of HUF 1,000,000 can be met smoothly, as the expected monthly fee in the calculation was HUF 276,000 (HUF 3.3M / year). The other question is that most customers cannot release such a monthly amount while paying for their current home.

 

Usability

Home Loan can only be used to buy a new property, while LTP can be used to buy new, used real estate, upgrade, upgrade, renovate and repay home loans. This is an extremely important factor, as in the case of housing savings, we are given the opportunity to change our goal on the move if we do not find a suitable new building.

It is not sure that when the group picks up our name, we will find suitable new property with the help of Home Loan. In fact, we sign a fixed payout price with the organizer, which also means that we have a framework for financing purchases from our own resources or from additional loans. I’m writing another credit because, regardless of when we get the property, the group will have to pay the monthly installments until the end of the term.

After the crisis, the Hungarian real estate market has been stagnating for years, but from 2014 onwards, an upswing has begun, which is still persistent. On the national average, based on the data of the HCSO, compared to the 2010 levels, we used 15% in the case of used dwellings and 22% in the case of new dwellings in mid- 2016. – writes the bank monitor.

Taking into account regional differences, we can say that, for example, in Budapest at present, there is an over-demand for new homes, which, combined with many other factors, meant brutal price increases. For example, a newly built 110 sqm Budapest agglomeration semi-detached house was available in 2014 for around $ 30 million, and now has to pay between $ 40 and $ 50 million.

 

In the case of Home Loan, the question arises whether in this case we could pay for the Home Loan community for an additional year (until the expiration) of HUF 166,666 (example), with the addition of an additional loan of HUF 10-15 million. monthly repayments may be more than 100,000 forints. Could we be credited at all with our income?

Flexibility

Minimum term: 10 years for Home Loan, 4 years for home savings. As long as we have the option to reduce payments at the homeowner contract, change the maturity, Home Loan can be reduced by strict rules, and it is impossible to pause payments . It is possible to get out of Home Loan at the earliest 10 years when we get the money back from our money without state support:

We get 26,000 x 120 = 3,120,000 forints less than the amount paid

We also lose state support in the case of housing savings, but we can immediately get our full payment. In the worst case scenario, this amount may be reduced by a 1% account opening fee in case you have used an action that has not been met. Our maximum loss per contract is when we have concluded a 10-year contract, but after 4 years we cancel the contract:

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