New ‘preferencial mortgages’ for different classes of workers are fuelling a property boom in Russia.
Russia is set to reach record-breaking figures in housing construction by year-end, largely bolstered by its government-subsidized mortgage programs. The Central Bank of Russia has also been implementing rules to reduce risky lending.
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Mortgage lending has doubled in Russia in the last three years and there are now problems building up:
Experts see an increase in mortgage lending in Russia as a threat of a financial crisis comparable to that in the United States in 2008
Can’t comment very well because we don’t know if future payments are tied to a price index and go up/down every year with inflation/deflation or if payments are a fixed amount for a set number of years (same as most US 30-yr mortgages, which are a fixed payment each month for 30 yrs).
From our own experience in The West it seems to me that when you have artificially low interest rates trouble always follows.
Damn It! We are incurring a housing gap with Russia! We cannot afford to lose the housing race with Russia. Our nation MUST pay any price, burden any burden to remain the “Exceptional” nation!
Thankful the current administration is addressing that with proposal to aid 500,000 Americans in buying a home.
Through its backing of a proposal known as the Neighborhood Homes Investment Act, it would “promote homeownership for an additional 500,000 households while increasing neighborhood revitalization investments,” Lael Brainard, the director of the White House’s National Economic Council, said in a speech on Thursday when he urged Congress to act on the proposal.
The act will introduce a new federal tax credit to help fund “the development and renovation of 1-4 family housing in distressed urban, suburban, and rural neighborhoods,” according to a draft of the bill.
It is the end of American housing as we know it.