Development companies complain
about a decline in sales due to tightened lending regulations that have complicated the procedure for issuing mortgage loans. For this
reason, developers are considering the introduction of an internal installment system.
According to Bezhan
Tsakadze, GDG Group founder, his company is focused on wealthy buyers who do
not use a mortgage, but other companies should introduce an internal
of this system is that it is not regulated
by the central bank. The regulator cannot interfere in a deal between the two
parties, ”he explains.
In Bezhan Tsakadze’s
words, the internal installment provides mechanisms to protect real
estate companies from the risks associated with non-payment by customers - if
the client cannot pay the amount, the apartment will be sold, and a former
owner will receive part of the amount paid by him.
“In a difficult period, when
banks cannot issue mortgage loans, developers are forced to act as a financial
institution , otherwise sales may fall to a record low,” GDG founder notes.
to Tsakadze, the internal installment system has other risks associated with
the lack of necessary amounts by the developers - there is always the danger
that the company will go bankrupt, and buyers who have paid for the unbuilt
apartments in advance will be left without housing.
government must once and for all adopt
regulations requiring either money or bank guarantees to obtain a building
permit, ” Bezhan Tsakadze explains.
businessman believes the restriction on obtaining a mortgage loan in a bank should not mean an automatic ban on internal installments.
Parliament and the National Bank are set to equate the internal installment
plan to a bank loan. If this norm is adopted, many development companies will
go bankrupt, ” Tsakadze points out.
his opinion, the very idea of introducing strict regulations on mortgage
lending was wrong, since property buyers are usually rational and responsible
people who can fulfill their financial obligations.
“If developers are still banned from introducing the internal installment system, it will cause serious damage to the business and increase the number of unfinished projects,” Bezhan Tsakadze concludes.