Real estate
.pdfaggregate – общий; совокупный value – значение, величина scale – шкала; уровень
invaluable – неоценимый; бесценный
established – признанный, авторитетный; известный
trackrecord–достижения(вкакой-либообласти);стаж(работы) mortgage – ипотека
to secure – гарантировать; предоставлять
secondary market – второстепенный (маленький) рынок; вторичный
profitable – выгодный, рентабельный to view – осматривать, смотреть
to handle – обрабатывать (документы) lawyer – юрист
developer – проектировщик; застройщик reliability – надежность
to augment – увеличивать; прибавлять
Buying real estate abroad is becoming increasingly popular. The buyers and investors can be divided into two categories.
The first category is made up of individuals who want to live abroad, either now or in the future; they may hope to buy an apartmentfortheirchildrenwhowillstudythere,orforthemselves after they retire. Or they may desire to do business abroad.
The second category involves those who simply want to invest their money in real estate, a reliable asset, thus diversifying their personal investment portfolio. Whatever the case, the acquisition of real estate is a good investment.
Despite state borders, the acquisition procedure for real estate abroad is fairly simple. A prospective buyer should formulate his or her goals for any future acquisition, as well as study the specifics of real estate markets, including prices. To ensure a
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better understanding of foreign markets and their investment opportunities, Miel Holding has developed a system of investment ratings, called Miel DPMR.
A country’s “investment appeal” is comprised of two main indicators: the potential of the real estate market and the inherent risks. Assessment of a market’s investment potential is based on an array of macroeconomic indicators – the so-called “country specific factors.” These are subdivided into 10 main groups, including labor, consumer market capacity, production, financials, institutions, natural resources and tourism. There are also two subgroups, which are made up of real estate, including basic real estate market factors, and specifics, which are only indirectly related to the real estate market, but can have a significant impact on it. Together, these factors give a reliable assessment of a country’s real estate investment potential.
In the Miel DPMR system, Russia’s real estate investment potential is compared with that of ‘Country A’ and the following assessments are made:
A:CountryA’s investment potential is superior to Russia’s;
B:CountryA’s investment potential is on par with Russia’s;
C:CountryA’s investment potential is inferior to Russia’s.
It is important to note that assessment of the real estate investmentpotentialisamorecomprehensiveindicatorthanreturn oninvestment:itoffersacomparativeevaluationandcharacterizes a real estate market as part of a country’s macroeconomic system. As for return on investment, that is calculated by Miel DPM experts with regard to a particular property.
The other indicator of a country’s real estate market and its investment appeal is investment risk. This is determined by an assessment of probable additional costs (losses) as a percentage of the sum of original investment that can be incurred by a
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person in a particular country. The main risks are political, social, environmental, managerial, criminal, and financial. Each category is rated according to four risk levels:
Risk Level I. Low (median losses are under 10 percent of the amount of investment).
Risk Level II. Moderate (median losses between 10 percent and 20 percent of the amount of investment).
Risk Level III. High (median losses between 20 percent and 30 percent of the amount of investment).
Risk Level IV. Unacceptably High, (median losses exceed 30 percent of the amount of investment).
In the aggregate investment rating, the first value characterizes the potential and the second characterizes the risk. For example, the АIII rating indicates that on the investment potential scale, a country/region has been given theArating, while on the risk scale it falls into Category III – i.e., a rather low investment potential and rather high risks.
Theseinvaluableinvestmentratingsprovideageneralideaabout the investment value of a country’s real estate market. After this, a prospectivebuyer(investor)shouldconsultwithacompanythathas an established track record in distant property management.
There is a wide range of investment options – buying one property, or several properties in different segments, or in different countries, etc. Properties can be chosen within a specific investment range, or a mortgage can be secured to buy property. An acquisition can be made on the secondary market or while construction is in progress, which is more profitable in certain countries. A prospective buyer is strongly advised to visit the country of choice and view the available properties.Adeal can be finalized and the payment made in Russia. As far as documents are concerned, only an international passport is needed.
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In processing the final contract, special attention should be paid to the paperwork. This should be handled by lawyers, who will determine if the acquisition is made on the secondary market and will assess the developer’s reliability if it is on the primary market. All of this is guaranteed by market professionals.
Amidst the ongoing financial crisis, real estate abroad has a special importance today, since it provides an instrument that not only protects, but also augments a buyer’s (investor’s) personal assets.
Ex.1 Give Russian equivalents:
to become increasingly popular; to live abroad either now or in the future; after they retire; whatever the case; to formulate one’s goals for any future acquisition; including prices; a system of investment ratings; the so-called “country specific factors”; basic real estate market factors; to be indirectly related with smth; real estate investment potential; an assessment of probable additional costs or losses; according to four risk levels; the amount of investment; to provide a general idea about; a wide range of investment options; to make an acquisition on the secondary market; the available properties; as far as documents are concerned; the ongoing financial crisis.
Ex.2 Give English equivalents:
разделить на; заниматься предпринимательской деятельностью; за границей; вложить деньги в недвижимость; надежный капитал; государственные границы; потенциальный покупатель; чтобы лучше понять инвестиционные возможности иностранных рынков недвижимости; емкость потребительского рынка; прибыль на инвестированный капитал; процент от суммы первоначальных капиталовложений; по уровню инвестиционного потенциала; управление имуществом на расстоянии; в пределах определенной денежной суммы; пока идет строительство; обращать особое внимание.
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Ex.3 Answer the following questions:
1.How many categories can buyers of real estate abroad be divided into?
2.How do reasons for investing in real estate abroad vary within these categories?
3.What can you say about the acquisition procedure for real estate abroad?
4.What should a prospective buyer do?
5.Why has Miel Holding developed a system of investment ratings?
6.What is an assessment of a market’s investment potential based on?
7.How does Miel Holding characterize Russia’s real estate investment potential?
8.What is the investment risk determined by?
9.What are risk levels?
10.What investment options can you call?
11.Who should handle all the paperwork in processing the final contract?
12.Why does real estate abroad have a special importance today?
Text B: BECOMING MOSCOW HOME OWNER
expatriate – эмигрант; изгнанник
CIS – Commonwealth of Independent States – СНГ citizen – гражданин
foreigner – иностранец
meanwhile – тем временем; между тем
to take over a barrel – застать кого-либо врасплох restriction – ограничение
ownership – собственность; владение
to face smth – сталкиваться (с необходимостью); наталкиваться (на трудности и т.п.)
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domicile – постоянное местожительство to obtain – получать; приобретать temporary – временный
to prolong – продлевать
regardless of – независимо от; не принимая во внимание nevertheless – однако; хотя
additional – дополнительный residence – местожительство to provoke – вызывать
to challenge –оспаривать; подвергать сомнению insurance – страхование
title –право на имущество lawsuit – судебный процесс; иск claim – претензия; иск
to arise from – являться результатом; возникать peculiarity – специфичность; особенность counterpart – аналог; эквивалент
in terms of – с точки зрения; в смысле; в отношении; в том, что касается
validation – срок действия; юридическая (законная) сила to notarize – засвидетельствовать нотариально
unlike – в отличие от transaction – сделка; операция preliminary – предварительный to sign – подписывать
deposit – задаток
rental – сумма арендной платы
to identify – определять; называть, указывать otherwise – или же; в противном случае
to withdraw – забирать, брать назад
escrow account – условно депонированный счет у третьего лица на чье-либо имя
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to get cornered – попасть в затруднительное положение; быть загнанным в угол
obliged – обязанный, вынужденный to reject – отвергать, отклонять
to opt – делать выбор, предпочитать
After a period of continuous renting, expatriates from CIS and Western countries who have long-term contracts in Russia often buy flats in the Russian capital – to live and invest money in. The whole process of apartment buying for a Russian citizen is no different for a foreigner.
Meanwhile,realtorssaythatapartmentbuyinginRussiadiffers fromthesimilarprocessabroadandthesedistinctivefeaturesoften take foreigners over a barrel.
Restrictions on foreign ownership of Russian apartments exist only in frontier regions of the state. So, expatriates can buy any flat in any part of Moscow. The only restrictions they may face are those concerning the domicile registration.
Although foreigners can buy an apartment, a house or a part of a house in Moscow, non-Russian citizens can not obtain the so-called “permanent registration” or propiska, even if they live in their own property. The permanent registration is meant for Russian citizens only; foreigners receive temporary registration that can be prolonged.
When it comes to property ownership, foreigners have the same rights as the Russians. The owner can sell or rent an apartment, regardless of whether his domicile registration is permanent or temporary.
Nevertheless, additional property rights of Russian citizens, such as residence registration, can cause problems for new property owners. According to the Russian law, a person who has permanent residence registration in an apartment may have the
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right to occupy the property without actually owning it. In some cases this form of social protection provokes situations when new owners are challenged by people who were formally registered in the apartment many years ago. The necessity for careful research of the property history is essentially important.And here we come to the important subject of property insurance in Moscow. Title insurance protecting the owner of real estate from lawsuits or claims arising from a defective title has its peculiarities in Russia.
Russian title insurance differs from its western counterpart mainly in terms of the validation period. In Russia, the title insurance agreement is usually concluded for 1-3 years, then the title is checked again and the agreement can be prolonged. If we consider the same deal in the USA, the title is usually checked once and the insurance agreement is valid for the entire period of ownership.
A residence permit is not necessary to an expatriate who is not planning to live in Russia for his whole life but is only determined to buy a Moscow apartment. As for other papers, a passport with its notarized translation into Russian is enough to buy a flat.
Unlike in the western countries, the majority of home purchasing transactions in Russia are made in cash. Usually a preliminary agreement between the buyer and the seller is concluded in a real estate agency. Upon the signing of a preliminary agreement, the buyer pays the seller a deposit to take thepropertyoffthemarketandpreparethenecessarydocuments. Then they choose a bank and conclude an agreement covering the rental of a safe deposit box. The payment for the apartment is put in the safe deposit box, and the parties sign their sales contract which should be registered by the state.
Upon registration the seller or his representative can receive a property rights certificate where the buyer is identified as the owner of the property. The seller should bring the property rights
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certificate to the bank by the time indicated in the contract and then receive his money for the apartment. Otherwise, the buyer may withdraw his deposited money from the bank safe box. So, the bank guarantees that the funds are not moved until all the requirements of the buyer and the seller have been fulfilled. The safe deposit box in Russia is similar to the escrow account used in western real estate transactions.
Nevertheless, in some respects, the buyer can still get cornered. In many countries if the seller accepts an offer in writing, he or she is obliged to sell the property to this very buyer. In Russia things are different: the buyer who made a deposit can be rejected and get his money back in case the seller changes his mind, opting for a more profitable deal.
Ex.1 Give Russian equivalents:
a period of continuous renting; these distinctive features take foreigners over a barrel; any flat in any part of the capital; the only restrictions; when it comes to property ownership; to have the same rights; without actually owning the property; mainly; the title insurance agreement; to be valid for the entire period of ownership; as for other papers; in cash; the parties sign their sales contract; to receive a property rights certificate; until all the requirements have been fulfilled; in some respects; opting for a more profitable deal.
Ex.2 Give English equivalents:
долговременныеконтракты;аналогичнаяпроцедуразаграницей; отличительные черты; пограничные регионы государства; получить постоянную прописку; временная прописка; вызвать проблемы для новых владельцев; согласно Российс кому законодательству; страхование права на имущество; продлить договор; вид на жительство; большинство сделок
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по покупке жилья; заплатить задаток; плата за аренду в банке сейфа (для хранения ценностей); ко времени, указанном в контракте; передумать.
Ex. 3 Answer the following questions:
1.Why do expatriates from CIS and Western countries buy flats in the Russian capital?
2.Are there any restrictions on foreign ownership of Moscow apartments?
3.What registration do foreigners receive in Moscow?
4.Do foreigners and the Russians have the same property rights? What is the difference between them?
5.Are there any peculiarities concerning the Russian title insurance? What are they?
6.What documents are necessary for a foreigner to buy a flat?
7.Who signs a preliminary agreement?
8.Where does the buyer put the payment for the apartment?
9.When can the seller receive a property rights certificate?
10.What does the bank guarantee?
11.Why can the foreign buyer still get cornered in some respects?
Text C: OFFICE SPACE RACE
ongoing – происходящий в настоящее время to prompt – побуждать
speculation – размышление, обдумывание to evolve – развивать(ся), развертывать(ся) to launch – начинать, предпринимать primary – основной, важнейший, главный concern – беспокойство, тревога prediction – предсказание; прогноз
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