More and more apartments are appearing on the Moscow real estate market, but not all buyers fully understand what the features of such housing are. Specialists from the kvartirolog.ru service told The Village what apartments are, how they differ from apartments in principle, and what is more profitable to take out a mortgage if you have initial savings.
What are apartments?
Apartments are legally non-residential premises intended for temporary residence. They are usually located in redeveloped buildings in the city center or in new buildings where the developer was unable or unwilling to obtain a residential building permit. Such buildings are usually registered as non-residential - hotel, office or other purposes. The type of building affects the amount of property taxes.
Modern apartments, as a rule, are not inferior to residential buildings in terms of landscaping and infrastructure of the house. But when purchasing them, you should pay attention to whether only apartments are located in this building and on your floor, or whether there will also be offices or even retail space. The most comfortable option is, of course, apartments in a building where apartments are also sold.
The legal status of non-residential premises imposes a number of restrictions on apartments:
You cannot register with them - you can only get temporary registration for five years with the possibility of extension. At the same time, you and your child will be able to use clinics, hospitals, schools and kindergartens in the area.
If one of your neighbors makes noise all night, you will have no legal basis to influence it.
Utility bills in apartments are 15–20% higher than in apartments - this difference arises due to different city tariffs for residential and non-residential premises. The same applies to property tax: it is 0.5% of the cost for hotel-type properties and other real estate properties, which include most apartments, and 2% for office premises. The apartment tax for individuals is 0.1% of its value, if it does not exceed 10 million rubles. The rate for more expensive properties is higher and can reach 2%.
The developer is not obliged to comply with the standards intended for residential premises: insolation level, infrastructure development, etc. In fact, the standards are usually not violated much, especially if there are apartments in the same residential complex.
What does the apartment market look like in Moscow?
Up to 30% comes the price difference between apartments and apartments. One-room apartments are on average 15% cheaper than comparable apartments, two-room apartments are 20% cheaper. As you move away from the center, the price difference usually increases. True, some apartments are more expensive than comparable apartments.
About 50% residential complexes with apartments belong to the business class, slightly less than 40% - to the elite class, 10% - to the comfort class.
2.3 million rubles the cheapest apartments within the Moscow Ring Road are priced (room with an area of 16 sq. m. in Marfin with delivery at the end of 2018). For 2.4 million rubles you can buy an apartment of 25 square meters. m. in Vostochny Biryulyovo, which is promised to be completed at the end of this year.
How different are the prices for apartments and apartments?
Moscow region
Minimum price of an apartment, million rubles.
Minimum price of apartments, million rubles.
from Sadovoy to the Third Transport Ring
5.2 (36 m²)
3.2 (17 m²)
near the Third Transport Ring
4.1 (22 m²)
4.4 (27 m²)
from the Third Transport Ring to the Moscow Ring Road
2.4 (25 m²)
2.3 (16 m²)
What is more profitable to take out a mortgage?
Let's say you want to buy real estate near the Third Transport Ring, no further than two or three stations from the Circle Line within a 15-minute walk from the metro. Are you considering residential complexes business class with delivery in 2018 and choose a one-room apartment or apartments with an area of about 40 sq. m. On average, such an apartment will cost 9.1 million rubles, and apartments - 7.8 million rubles.
Let's say you have 3 million rubles as a down payment, the rest of the amount can be taken out on a mortgage at 11.7% per annum (average mortgage rate in Moscow for the 1st quarter of 2017 according to the Central Bank of the Russian Federation) for 15 years. The cost of compulsory property insurance will be 0.15% (accrued annually on the outstanding balance) per year. At the same time, it is desirable that your income be at least 150 thousand rubles if you are buying an apartment, and 180 thousand rubles if you are buying an apartment: it is recommended that the monthly mortgage payment be no more than 40% of your earnings.
How much will a mortgage cost?
Expenses
Apartment, million rubles
Apartments, million rubles
Object cost
An initial fee
Amount of credit
Total payments for the entire loan term
Thus, with the initial price difference between an apartment and an apartment being 1.3 million rubles, the final difference with a mortgage is 2.8 million rubles.
Apartments have always been perceived by Russians as luxury housing and were considered an attribute of luxury and wealth. Today, becoming more and more accessible to the average consumer every year, they are rapidly gaining popularity. At the same time, this format of real estate is unusual for us and in many ways incomprehensible. People who are planning to buy living space in a new building in modern realities are first of all looking for answers to the question: apartments and apartments, what is the difference?
Apartments - what are they?
To understand, you first need to understand what apartments essentially are.
Their main difference from apartments is that they belong to the category of commercial real estate rather than residential.
This largely explains why they are often located in business districts, office buildings and large hotel complexes, and the construction of new apartment buildings is carried out in very prestigious urban spaces that are very attractive to potential buyers.
The apartments are designed internally and externally modern design and all necessary communications. In terms of their status, they are equal to hotel rooms: just like hotels, they provide comprehensive services for residents, including services for keeping the housing clean, 24-hour security and a parking space. In this case, the premises are the private property of the owner.
Advantages of apartments compared to apartments
More affordable price
According to experts, the cost of apartments is on average 10-15% lower than the cost of an apartment of similar size.
Considering the situation on the real estate market, this indicator is quite significant, especially considering that for many apartments will be more convenient: business people, accustomed to living at a frantic pace, are not always ready to travel for a long time to work every day. For most of them, it is much more practical to live close to their office. And taking into account that apartments are most often ready-made turnkey housing, in addition to saving money when purchasing, the owner of such real estate is relieved of a number of additional worries.
Convenient location
Most of the apartments available for purchase are located in residential areas of the city or new buildings. This is due to the fact that those who want to sell their square meters in the center, as a rule, there is little, and there is practically no space for residential development in the heart of the city.
As for commercial real estate, which includes apartments, it is absolutely possible to obtain permission to build it in the central areas. Thus, buyers have a real chance to purchase affordable housing not somewhere on the outskirts, but in the very center.
Profitable investment
According to realtors, purchasing apartments is a good investment. Today, about 20% of apart-hotels are built with investment support. The income from renting out the most attractive of them can be 9-12% per annum. This is much more profitable compared to apartments, which can only yield 4-7% over the same period of time.
However, you need to take into account that apartments are only profitable to rent out.
Reselling this type of housing can be quite difficult, since most people, when choosing a place for permanent residence, still prefers apartments.
Variety of design solutions
Most of the apartments are located on the territory of buildings that previously belonged to plants and factories. This is an undeniable advantage from an architectural point of view. There are a lot of options for interior and exterior decoration solutions, which makes it possible to create a unique design.
In the premises you can often find fireplaces, terraces adapted for a winter garden, panoramic glazing and many other extraordinary solutions.
To make redevelopment in the apartment, you do not need to obtain special permission for this, provided that the changes do not affect the structure and will not affect the reliability and general safety of the building. And that means, without exaggeration, you can create the home of your dreams!
Thus, the apartments have quite significant advantages compared to the apartments everyone is used to. And yet, in this barrel of honey there is also a fly in the ointment. This housing format has its drawbacks, which you also need to be aware of. If you have a choice between an apartment and an apartment, you need complete clarity about the difference between them.
Who are you willing to entrust the management of your home to: a management company or an HOA? Find out what is really more convenient and profitable for you in.
Without unnecessary nerves and queues, transmit your electricity meter readings using the Internet: .
Disadvantages of apartments compared to apartments
Inability to register
Despite the fact that apartments become property upon purchase, they cannot be registered at the place of residence. Being commercial real estate, such premises cannot legally be called housing. Even obtaining temporary registration is possible only if the apartments are part of an apart-hotel or hotel.
Lack of social facilities
Commercial real estate developers are not obligated to construct such socially significant buildings as schools, kindergartens and clinics.
Realtors usually try not to focus attention on this issue, citing the fact that apart-hotels are built in areas with already existing developed infrastructure. However, it is worth understanding that a large increase in unregistered residents may exceed the capabilities of already existing social district institutions. There is no point in hoping that this issue will be resolved by itself. In this regard, serious everyday difficulties for residents are possible.
High utility bills
Since apartments are commercial real estate, utility bills for them are calculated differently than for residential premises. Cold water costs on average 10% more, hot – 21%. Heating costs will increase by approximately 22%. This is what the situation looks like if the apartments are directly connected to city networks. And if there are intermediary organizations, utility bills turn out to be even more expensive.
High tax
The tax on apartments is also calculated based on their status as commercial premises. Moreover, if for housing located in apart-hotels and hotels, the rate is 0.5% of its cadastral value, then apartments included in retail and office complexes have a rate of 2%.
Compared to apartments, the rate for which is 0.1-0.3%, the tax burden on apartment owners is much higher.
No tax deduction
Apartments are a fairly new phenomenon: both the Housing and Tax Codes do not say a word about their owners. Therefore, the buyer of such premises can safely forget about his legal right to a property tax deduction as a taxpayer, as well as about subsidies and benefits for paying for utilities that are due to the owner of a home with an income below the legal norm.
When asking yourself the question of what is better: an apartment or an apartment, you should first of all understand what their difference is.
For what purposes is real estate being purchased, how it will be used, and how reasonable the purchase will be, based on its consequences, is a serious reason for the future owner to think carefully.
Watch the video for an explanation from a specialist: what you need to know before buying a home.
1. Lower price
The difference in price between regular apartments and apartments is about 10-15%, although in some cases it can reach 30%.
However, in the context of falling incomes, the supply of inexpensive traditional housing increases, due to which the difference in cost between apartments and ordinary apartments is reduced.
2. Freedom of planning decisions
Quite stringent requirements for planning and redevelopment for ordinary apartments are not imposed on apartments, which follows from their legal status (non-residential premises). In particular, the apartments do not have a distinction between residential and non-residential areas, which makes it possible to organize premises for various purposes in almost any private apartment.
For comparison, bathrooms and sinks in traditional apartments must be located in certain places. There is a decree prohibiting the transfer of a bathroom or kitchen to a place in an apartment located above the living quarters of neighbors below.
3. Exemption from property tax in case of use of apartments as workshops, ateliers and studios
According to paragraphs. 14 clause 1 art. 407 of the Tax Code of the Russian Federation, individuals using apartments exclusively as workshops, studios and studios are exempt from paying property tax.
Disadvantages of the apartments
1. High taxes
From the point of view of tax legislation, apartments are classified as “other premises” and are generally subject to real estate tax at a rate of 2% of the cadastral value.
A preferential rate of 0.5% of the cadastral value has been introduced for owners of apartments in shopping and office centers in Moscow. However, even this rate significantly exceeds the property tax rate for ordinary apartments (0.1 - 0.3% of the cadastral value). At the same time, to receive benefits, apartments must meet a number of requirements (see the article for more details). As of the end of October 2016, the list of Moscow apartments whose owners can count on benefits included only 7 properties.
When purchasing apartments, it is impossible to obtain a tax deduction for personal income tax (13% tax exemption), which every Russian citizen can receive once in a lifetime when purchasing a home.
2. Reduced requirements for illumination, noise insulation and insolation
The apartments are not subject to sanitary rules and regulations established for residential premises and establishing the level of illumination, sound insulation and insolation. Therefore, developers often will not comply with these standards in cases where it provides them with cost savings.
3. Inability to obtain permanent registration
Apartments do not provide permanent residence rights, which, in particular, is necessary to fully use the city’s infrastructure.
Registration at the place of stay is possible in cases where the apartments are managed by specialized institutions, which include hotels, holiday homes, etc. In this case, registration can be issued by the corresponding specialized institution. However, such registration must be renewed every five years.
4. Possible lack of infrastructure in the surrounding area
Since apartments are not considered housing, they are not subject to the requirements for creating in the immediate vicinity all the infrastructure necessary for life (schools, kindergartens, clinics, etc.).
The requirements for providing parking spaces and landscaping in the local area for apartments are lower than for residential buildings.
Also, developers are not obliged to equip the area adjacent to the apartment complex for recreation and sports for adults and children.
5. Possible proximity to busy offices
Often apartments are located in the same building with busy office spaces, which can create inconvenience for recreation and sports. Mothers with strollers and people with limited mobility may face particular challenges.
6. High service fees
Tariffs for utilities and building maintenance for apartment owners are usually higher than for owners of traditional apartments, since in the case of apartments the management companies themselves set the tariffs. Moreover, the cost of these services for apartments is calculated at the rates of legal entities, not individuals.
The apartments are not subject to the provisions of the Housing Code on the procedure for managing the common property of the building. Therefore, apartment residents do not have the opportunity to influence the tariffs set by the management company.
As practice shows, apartment owners pay 15–35% more for utilities and building maintenance than owners of ordinary apartments.
7. Noise from neighbors using the apartment as workshops
Despite the fact that the apartments are mainly used for permanent and temporary residence, they can also be used as workshops, ateliers and studios (which is more consistent with their status). In this case, you may become hostage to constant noise from neighboring studio apartments, since the requirements for maintaining silence imposed on residents of ordinary apartments do not apply to apartment owners.
It may also turn out that due to the type of activity of your neighbors, a large number of strangers will move in the immediate vicinity of your apartment, which will violate the privacy of your residence.
8. The danger of living in apartments resulting from the reconstruction of former industrial buildings
Apartments often appear as a result of the reconstruction of old industrial buildings, which in the past housed production, the activities of which affected the environmental safety of the structure and soil, and also affected the strength of load-bearing structures.
Is it worth buying an apartment?
Living in apartments is more expensive and comes with certain inconveniences, which is offset by the lower price of this type of housing. Before purchasing an apartment, you must weigh the pros and cons to decide for yourself whether the lower price of the apartment will compensate for all the hardships and inconveniences that you will be forced to endure while living in it.
Many developers and apartment sellers say that over time the apartments can be converted into residential real estate. But in practice, this is only possible if they meet all the requirements for residential real estate. But the apartments are initially built without complying with a number of requirements for housing. Therefore, converting apartments into housing is usually either impossible or requires large expenses.
The residential and commercial real estate market is incredibly vast. When offering housing properties, realtors often call an apartment an apartment. This term becomes a kind of symbol of success, luxury, independence and wealth.
But are these concepts the same - apartment and apartment? Even the most superficial glance will determine that these are completely different things. Let's look at the difference between apartments and apartments. Let us determine how significant these differences are and why these concepts should be clearly distinguished.
What is an apartment?
The following definition is generally accepted. An apartment is a type of separate real estate used both for permanent residence and for rental. It has a separate entrance and is fully adapted for normal life: there are all necessary communications, heating, water supply, sewerage. Apartments are not the same, they differ from each other in their different location in the city, area, type of structure of a residential building, its number of floors and many other parameters. But, despite all the differences, apartments make up one specific segment - residential real estate, or housing stock.
There are enough offers for the sale of apartments on the domestic real estate market: this includes secondary housing. Apartments for sale may be excellently renovated, but are usually not furnished.
Apartments: what is it?
Apartments equipped with modern communications, excellent furniture and located in hotel complexes are called apartments. This is an elite luxury property used for temporary residence of wealthy guests. The main characteristics of such a facility are modern stylish design and full provision of household and technical communications. Accommodation in apartments is possible only on a temporary basis.
In other words, apartments are non-permanent housing, identical to a hotel room. And just like in a classic hotel room, an indispensable attribute of staying in it is full service at a time convenient for guests, including the full range of cleaning work, changing linen, providing parking spaces, specialized security services, and other infrastructure facilities.
This one is very popular in resort areas and metropolitan areas. Wealthy citizens often buy apartments in close proximity to work to save time. Comfortable complexes, so-called apart-hotels, are being built fairly close to the sea or the business center of the city.
The potential buyer is offered various types of apartments, the most common of which are one-bedroom and Western “studio” options, in which the living room is combined with a kitchen. However, the market sells apartments with 2 and 3 bedrooms, as well as multi-level premises. The difference between an apartment and an apartment is that the buyer of an apartment acquires residential premises with modern renovation, stylish furniture and built-in appliances.
Legal status of the apartments
In Russian legislation, the concept of “apartment” is not fixed, at the same time, the term “residential premises” is given a fairly broad definition. It is recognized as a separate premises as part of real estate, suitable for permanent residence and complying with established standards of sanitary, technical and other operational rules. The legislation provides for the following types of premises as residential premises: a house or part thereof, an apartment or a share in it, a room. The term “apartment” does not refer to the “residential real estate” segment. In other words, to the question about apartments: what is it, you can answer that it is residential premises in a non-residential building.
Differences between an apartment and an apartment
So, apartments are not related to the housing stock, so they can be created in buildings of any type, for example, office buildings. To be assigned the “apartment” status, belonging to the housing stock is required. In addition, there are differences between these concepts in other planes:
- according to the requirements of the Gosstandart resolution, the area of the apartment should not be less than 40 m2, and the number of rooms should be 2 or more; the presence of a bathroom and a kitchen is considered mandatory;
- Such requirements are not imposed on an apartment, which may have only one room with a much smaller area.
Let's take a closer look at each difference between an apartment and an apartment.
Price
Real estate market experts note that the price of apartments is usually 10-15% lower than the cost of an apartment of a similar type, but operating costs are always higher. This is due to the fact that the cost of utilities for apartment owners is significantly higher than their cost for residential property owners. In particular, heating services are higher by 20-30%, water supply and sanitation - by 12-25%. The presented figures are ambiguous; prices for housing and communal services depend not only on the regional location, but also on the nature of the connection of utilities with the networks of resource supply organizations. For example, if services are provided through intermediaries, then you will have to pay even more for them.
The absence of the concept of “apartments” as part of residential real estate does not allow their owners to apply for subsidies for utility bills, provided that their total monthly income for the last 6 months does not exceed established standards. Apartment owners cannot take advantage of the benefits regulated by the Housing Code. What is the difference between an apartment and an apartment, besides cost characteristics?
Registration Features
Purchasing an apartment presupposes the possibility of permanent registration at the residential address. It is impossible to register in apartments at your place of residence due to the fact that legally they are not housing.
The question of the possibility of temporary registration in apartments still remains unclear, although there is no direct prohibition on the exercise of such a right by owners of apartments purchased in buildings with the status of an apart-hotel or hotel.
Lack of objects of social significance
When deciding which purchase is more profitable - an apartment or an apartment, you should remember that the developer of such buildings does not bear any obligation to construct social infrastructure facilities. Actually, this factor explains the relative cheapness of apartments - developers of hotel complexes, as a rule, do not build schools, kindergartens and clinics.
Despite the fact that realtors usually do not raise this problem or smooth it over with assurances that apart-hotel developments are carried out in areas with established infrastructure, one should not forget about it. In megacities, the volume of construction and sale of such complexes is very significant, and social facilities not in every district can provide an increase in unregistered users.
The management of Moscow's urban planning department plans to approve construction standards obliging developers to build infrastructure facilities in parallel with the construction of hotel complexes. Most likely, the introduction of such obligations will raise the cost of apartments to the price of apartments.
Permission to redevelop apartments is not required
How are apartments different from apartments? The fact that the need or possibility of redevelopment of these premises is regulated general provisions Town Planning Code, according to which permission is not required if the proposed changes do not bring about structural changes and do not change the level of reliability and safety of a non-residential building. And if the lack of permits greatly simplifies the reconstruction of apartment premises, then there are many problems in the organizational features of the functioning of such buildings.
Difficulties in managing non-residential buildings and differences in property taxes
According to the Housing Code, technical premises apartment building(attics, basements, etc.) are in shared ownership of the owners of residential premises. This rule is not provided for apartments. Therefore, the buyer purchasing them must remember that the ownership of the rest of the building and utility networks is with the developer, and he can impose on the owners the services of a management company that is beneficial to him.
In addition, the legislation adopted since 2015 has significantly increased the property tax, the calculation of which will now be carried out on the basis of And if the housing tax rate is 0.1% and quite impressive benefits are applied, then non-residential real estate, which includes apartments, is taxed at a significantly higher rate.
Nature of acquisition
The difference between apartments and apartments also manifests itself for purchasing purposes. The purchase of apartments, as a rule, is of an investment nature, i.e. in most cases they are bought for profit, while the purchase of an apartment has a pronounced social background - accommodation.
If the owner of an apartment registers as an individual entrepreneur and declares income from renting out property, then he does not have the right to tax exemption when selling these premises, even if they have been owned for more than 3 years.
Understanding the differences, it is easier for a potential buyer to decide which room suits him best - an apartment or an apartment. What is best for him and the goals he pursues, only he knows. The status of the purchased property depends on the nature of the acquisition, opportunities, necessity or other conditions. Now, when considering a future purchase, you can clearly imagine how an apartment differs from an apartment.
