Perspectives of development of service market of mortgage crediting in Tatarstan Republic
Real estate investment is one of the cornerstones of modem economy. The importance of this investment market creates the obvious interest to its research, including the research of the models and methods used in large-scale development projects, as well as in individual sales. Buyback loan is a loan with repurchase capability. Car loan companies recently started to use buyback programs in Russia. A buyback program allows to make smaller monthly payments comparing to conventional loans. What are the perspectives of these programs for mortgage loans if they work successfully for car loans? At this point of time there is not a single bank in the country supporting such a program; all real estate is sold using conventional loan schemes. On the other hand, the buyback loans are often used in Western Europe and the US. What can we do to modify the program according to Russian real estate standards? This article provides the answers to aforementioned questions, explains the need to study financial mechanisms and instmments used in real estate transactions, portrays the Republic of Tatarstan mortgage loans market. We have developed a new financial instrument for mortgage loans and proved its profitability.