Repair of an apartment, no matter the new building or secondary, it is a costly event that immediately requires money. You need to make a design project of the apartment, purchase materials and pay for work with contractors. Finding the full amount does not always go out at once, so you have to take a loan or look for companies that will make repairs in installments. In this article we will analyze whether it is profitable to make an apartment repair on credit, and what to do if you don’t want to take a loan, but you need to do the repair.
Content:
- Why make repairs on credit?
- How to make repairs on installments and not take a loan
- Use a credit card
- Take building materials, furniture, equipment in installments
Photo: interior in a new building before and after repair
Why make repairs on credit?
The interest rate on consumer loans is gradually crawling up. At the beginning of 2023, a consumer loan could be taken under 12% per annum. Today the rate is about 21%. Thus, if you take on credit 2,000,000 rubles for apartment renovation, then for 5 years you will have to overpay about 1,200,000 rubles. The interest rate and overpayment are calculated conditionally, you can find a loan and cheaper, but on average such conditions.
Photo: interest rate on consumer loans on average 21%
The overpayment is significant, but in the current situation it is more profitable to pay interest on the bank than to postpone repairs for several years. The fact is that materials and services are also constantly growing up. Rosstat can publish its “optimistic” forecasts as much as you like, but the market shows the opposite. A year ago, 1,000,000 rubles could be made high -quality, but simple repairs in an apartment with an area of 40-60 m2. In 2024, this amount was already transferred for 1,500,000.
Photo: every year the repair becomes easier, and the price is growing
If the apartment is the only housing, it is impossible to live without repair in it. We’ll have to rent another apartment and pay the tenant until the repair is completed, and this is additional expenses. In addition, the interest rate on loans can rise in the coming year, and the overpayment will become even more. In 2024, the Central Bank meeting was scheduled for February 16, 2024. For example, the difference in the change in the key rate over the past 2 years.
|
Starting date |
The size of the key rate, % per annum |
|
from 09/19/2022 |
7.5 |
|
from 07.24.2023 |
8.5 |
|
from 08/15/2023 |
12 |
|
from 08/18/2023 |
13 |
|
from 10/30/2023 |
15 |
|
From 12/18/2023 |
16 |
|
from 02.16.2024 |
? |
When a person does not have money for repairs, he has to save on materials and choose cheap and not the highest quality specimens. Because of this, the repair is not short-lived and may cause inconvenience in the future. For example, the owner of the apartment puts a cheap laminate on the floor, and he begins to disperse at the seams. Or he saves on an electrician and does not make enough outlets and lighting. As a result, it is uncomfortable to be in the apartment, and all the money has already been spent.
Photo: the interior on which you have to save is not quite comfortable
The advantage of the loan is that a person immediately receives the entire necessary amount and may not save on materials, but make a high -quality finish that will delight him for many years. The loan can be paid for 5 years, and a good repair will last more than 20.
How to make repairs on installments and not take a loan
If you make an apartment repair through a construction company, it can provide installments, and payments can be made in parts. In this case, you do not have to take a loan for repairs.
For example, our company has a flexible payment system. It allows you to pay money not immediately, but in parts. Repair is divided into certain stages: development of a design project, draft work and finishing.
In order to start repairs, it is enough for the customer to pay for the design project and buy materials for the draft stage. Next, builders go to the facility and begin repairs. When the rough work ends, the customer pays for them, and the builders move to the chill stage of the finish.
Photo: main stages of apartment renovation
On average, the repair lasts 3-6 months. For example, the customer counted repairs for 2,000,000 rubles in an apartment without a 50 m² with an area of 50 m². First, he pays for a design project. This is about 100,000-200,000 rubles, depending on the type of design project. Next, he buys materials for draft decoration for about 200,000-300,000 rubles.
After buying materials, builders go to the object and begin to make a black finish. Work can take 2-3 months. As the builders finish draft work, the customer gradually pays for them. Further materials are bought for finishing, and builders are already starting to work with them. So, gradually, the repair ends.
The advantage of such a system is that you do not need to overpay for repairs, a person pays all the money on the fact of the work performed.
Use a credit card
Another way to make an apartment is to use a credit card. Its advantage over the usual loan is the presence of an interest -free period of use of money. Different banks differ. The average grace period is 2-3 months.
If a person has a good credit history or he receives a salary for a card of this bank, he can be offered a credit card with an interest -free period from 6 to 12 months. During the grace period, the client needs to return the money spent from the card, otherwise you will have to pay interest. They, as a rule, are higher than a regular loan. Interest is accrued for every day of delay.
In the case of repair, you can, for example, pay for building materials with a credit card, and give your money for work. Or you can pay for repairs with your own funds, and buy furniture and appliances for a credit card. It is usually unprofitable to remove cash and pay them repairs, since the commission is charged for this. You can clarify all the nuances of using the card at the bank.
Take building materials, furniture, equipment in installments
Large banks, such as Sber, VTB, Alfa-Bank and others, provide an interest-free installments for the purchase of building materials, furniture and equipment. The buyer purchases the goods and then pays a fee monthly for him. An installment plan without overpayments, as a rule, is given for a period of 6 to 12 months.
For example, in the mobile application of Sberbank, you can apply for installments online. You can familiarize yourself with the installment conditions in the loan section.
Photo: In Sberbank online you can arrange an installment plan for building materials, furniture and appliances
If you can’t get installments online, you can find out about it in large stores. Usually there are credit specialists right on the spot.
The lack of such an installment plan to the goods is that it may not apply to all goods and therefore will have to choose not what I wanted initially. For example, installment plan can only be given on an engineering board, but there will be no quartzvinyl. Even when buying in installments, you need to carefully study the price. The bank can cooperate with the store that has a higher price. Sometimes it happens that installments are more expensive in terms of installments at cost than if you buy them from other companies that do not give installments.
Conclusion
The most convenient option for paying for the repair of the apartment is to take a loan on it, and then repay the debt to the bank within 5 years. In this case, interest will be accrued, but the loan will still fully justify itself, since the prices for materials and services are rising annually.
A more profitable solution is to conclude an agreement on the repair of an apartment with a construction company. In this case, it will be possible to pay a fee in parts, and there will be no overpayment. The entire cost of work and materials will need to be paid to the account of the construction company within 3-6 months, during the repair.
If it is difficult for a person to pay for repairs for such a period, you can additionally use the credit card. For example, buy building materials for a credit card, and pay your money for work.
Another option is to make repairs by installments at the construction company, and after the completion of the repair, take furniture, household appliances and accessories by installments from the bank. The bank will need to pay the debt within 6–24 months, depending on the conditions of the organization. There will be no overpayment in this case.
