Purchase of residential real estate can be one of your most significant investments in life.
Not only are you choosing your dwelling in which you will spend a lot of time but you are most likely investing a large portion of your assets into this venture.

The more prepared you are at the outset, the less overwhelming and chaotic the purchasing process will be. Usually the question is whether a person should lease or purchase a property. There are many factors that influence this decision such as how long a person intends to stay at one certain address. If there is a possibility that occupancy will last only a year, then it is probably advisable to lease a property. The only time it makes sense to purchase with the intention of a quick turn around is if the property purchased was undervalued or if the real estate market is appreciating so rapidly that the increase in equity will exceed the cost of selling the property.

As real estate brokers, we would like to make the real estate purchase-sale process as easy as possible for everyone involved. That means we provide you with the detailed information that can benefit you immediately and help you in your next move.

The reports will not only SAVE you money,
                                                                    but can MAKE you money in real estate

Please help us to assist you more thoroughly by filling out the online Housing Application, one of our bilingual Brokers will get in touch with you shortly to discuss the details and complete the application process.

If you have any questions about the purchase-sale process, we are only a phone call or e-mail away:

Today real estate market in Moscow is very active due to many reasons, such as the general stability of Russia’s economy, the exchange rate is currently stable and increasing domestic production. People moving to Moscow from other cities of Russia and foreigners influence the situation in the market as well: instead of leasing a property, many of them prefer and have the necessary assets to purchase a property.
      Leading real estate experts predict that city property prices will continue to grow this year. While smaller flats from studios to two-room apartments are still in greatest demand, more spacious economy–class residences for $1,300 to $1,800 per square meter are also expected to sell well in 2002. In addition, a large number of new developments are scheduled for completion in 2002.

Primary residential market Secondary residential market

During the past years this market sector has seen steady growth due to demand for affordable yet new and comfortable apartments. The growing demand has pushed sale prices upward. Sale prices on the primary market have grown by 15 percent to 25 percent during the past year. Bottom line prices reach now $550 per square meter while in January 2001 the minimal market rates were as low as $460 per square meter.

Market purchase prices depend on several factors, the main are:

• Location. While lower-end apartments on the primary market sell from $500 to $1,000 per square meter, the cheapest properties can be found in the southeast of the city. Downtown as well as the western sector of Moscow (including southwest and northwest) remain traditionally the most expensive areas to live. Properties of the same quality located in southeast part and west part can differ in price by up to 100 percent.
• Construction stage you are willing to bet on. Purchase of a property at the initial stage of construction works saves up to 30 percent of the total cost.
• Type of project. The most expensive ones are those boasting “uluchshennaya planirovka” (upgraded layout). Usually, for such buildings developers use monolith and brick materials perceived as the most durable and reliable. Such complexes have their own infrastructure-complete with attractive yards and reliable security. Commonly, condominium extras include small convenience stores, underground parking and a bank outlet.
• Other price-setter factors:
  

  Price-setter factor		Increases the purchase price by (%)	Decreases the purchase price by (%)
  Location	Central West, North-West, South-West	40 18-25
  Transport facilities		10-15
  Infrastructure		15-17
  Environment (park or wood nearby)		15
  Ground floor			10-15
  Top floor			5-7
  Renovated property		5 and more
  Renovation-needed property			10
  Parquet floor		1-2

The following factors also influence the purchase price: concierge/guard in the entrance, balcony or loggia, parking lot or underground garage, operating telephone line, window view.

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Secondary residential market

On the secondary market purchase prices have increased by 25 percent over the last 12 months. The most desirable apartments are large ones, in solid brick buildings constructed during the Stalin or post-Stalin period, with high ceilings and nice entrances. Clients mostly seek properties in the downtown area, west, southwest, northwest. Prices are currently the highest in the center. One square meter in the downtown area starts at $950 per square meter. In the northwest as well as southwest and west - prices currently start at $800 per square meter. Apartments in the northeast go from $700 to $850 per square meter. The industrial east of the city is considered one of the cheapest. Prices for one square meter range from $700 to $800 per square meter here. Due to the poor ecological situation and inconvenient transport access the south and southeast parts are the cheapest, one square meter goes from $650 and hardly exceeds $800 per square meter. According to the 2001 Final Report, worked out by our Marketing department, the average actual purchase prices in Moscow were the following:

Owning a property can bring financial rewards as well as a personal satisfaction. Some of the financial benefits include:

• Real estate values generally rise over a period of time.
• Property owners may deduct mortgage interest and property taxes as an expense against income, while residential investors may write off cost recovery or depreciation.
• Real estate is marketable – it can be sold at a predictable price to a dependable group of available buyers, provided enough time is allowed to expose the property to those buyers.
• Real estate provides its owner with valuable control and management of its value.

The decision to purchase a property has as much to do with your personal needs as it does to do with the financial reasons that can motivate a Buyer. Do the math to understand the monetary ramifications.

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Property purchase-sale deal is quite a complicated process from a legal point of view. That is why most clients come to us for assistance and guarantees. We are ready to answer all your questions that may arise in course of the process and consult you. After we assist you at finding an appropriate property to purchase, these are the main steps to execute and complete a Purchase-Sale transaction:

I. Step. To collect Documents necessary for formalizing Purchase-Sale transaction:

1. Passports from all participants of a transaction and/or individuals authorized to execute a Purchase-Sale transaction,
2. Apartment title documents (for example Purchase-Sale Agreement or property certificate),
3. Urban registration office of rights on real estate statement from the register of encumbrances about absence of limitations on property dispose,
4. Statement from Housing Book,
5. Copy of dwelling premise finance account,
6. BTI (Technical Inventory Bureau) form 11A specifically indicating there is a pledge on the property,
7. Form 22,
8. Floor plan,
9. Detailed information about the inhabitants of a property of the past 5 years indicating of those who were registered and who, where to and on what bases discontinued registration or who are still registered but absent due to imprisonment or military obligations,
10. Negative utility payments indebtedness note,
11. Psychiatry and Narcology Facility (PNF) and Neurology Facility (NF) References and Notes for all participants of the transaction,
12. Marriage/divorce certificates of the Seller(s),
13. All incompetent and/or partially competent individuals (for example teenagers) currently residing or registered in property need permission of Custody and Trusteeship bodies,
14. Documents (such as Form 6 with permission for registration at a new address) confirming existence of other living-space for the Seller to reside in,
15. Death certificate (for property received through inheritance, under Purchase-Sale transactions with permanent alimony as well as in all other necessary cases),
16. Personal attendance of individuals at a transaction representing co-owners of the purchased property (spouses/spouse) or notarized accord of such individuals for a Purchase-Sale transaction,
17. Other necessary documents depending upon the type of real estate transaction.

Being one of our valued Clients, you are assured of our qualified team’s commitment to professionalism at every step of the process. We also provide ongoing real estate legal support and consulting.

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If you have any questions about the purchase-sale process, we are only a phone call or e-mail away: