If in large Russian cities salaries are still more or less normal and accumulate housing is almost real, but the province can't afford that. More than half of the population earns only food,utilities and a minimum of clothing and footwear. Luck those who housing remains from parents and relatives. The rest either rent or mortgage, after which their lives turn into a nightmare.
Huge payouts are hardly osilivaet family which already has children or they are about to appear. A good bonus was the "maternity capital" which turns the family one-time when the family appears 2-3 or subsequent child. Sum almost in 500 thousands of rubles helps pay part of value of housing, and in small towns and villages as well sometimes even full the cost of. It all depends on the region, the state of housing, location in the city/village. Some buy old houses and put them in order. So, if there is a possibility, of course it is more profitable to invest in repairs and increase the area of the purchased house.
The house in the photo was purchased several years ago for 3 million rubles, about 50 thousand dollars. It is located in the city center, has several acres of land. Repair it never did, only changed the roof. I think people just wanted to invest in real estate and all. And it is in the house with a plot, albeit old, and not in the apartment that it was profitable to rent. The land is growing in price, people probably hope that the center will expand and they will resell well-bought after a few years.
One can not buy a house or apartment, others are buying to resell. It all depends on the level of income.
Interest rates for a mortage in Russia are also pretty high as I've understood.
We actually own an apartment in St.Petersburg, nearby the Kupchino metro station, 21st floor, bought it relatively cheaply some 15 years ago as a prospect (the apartment block still only existing on paper when we bought it). It was meant to be for us while visiting Russia, but in reality we stayed mostly with my wifes parents while being there anyway (our daughter was even born in her parents apartment).
The contract was not very good for us (i.e., the amounts was specified in "defined units", meaning "US dollars or 31.5 (IIRC) roubles, whatever is worth most when the apartment is finished" - and they decided at some point to build glass balconies, increasing the area of "indoor space" we needed to pay for). The luxury feeling of living in a new prosperous apartment building faded away quite quickly after it was constructed. I don't really have the overview of what we paid for it and what it's worth today. My wife is renting it out to friends ...I have no idea what our income on it is nor where that money goes. At least the apartment is in use.
I believe we have done a good investment - we could afford the apartment back then, so we have no mortage - and given our economical situation back then, the total cost of the apartment cannot have been that great. I guess it was around 30 kUSD totally, and then of course we've spent some money on the interior. We got internet in place even before the toilet was installed ... of course, that was my priority.
There were a metro station, train station, some buses and some outdoor market places there when we bought it - now the significance as a transportation hub has increased, there are huge shopping centers there, even a 24/7-open bookshop, used to be a 24/7 gourmet shop in the basement of our building (eventually it was remade into a cheaper shop with fewer selections and closed during some few hours every night). The value of the apartment must be quite significant today I believe.
your apartment is now several times more expensive, believe me. good investment. at us in the city in glubinka now for 30 thousand dollars it is possible to buy the old apartment with 1 room about 25-30 square meters of the area.
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