Rising costs, which are difficult to predict, especially in long-term projects, are inevitably reflected in the prices of flats, and developers are responding to this situation in different ways. A term that is being heard more and more recently is “inflation clauses”. At Lucron, we have chosen a different path, because we don’t want to transfer our business risk to our clients. That’s why you won’t find inflation clauses in our contracts and we will continue doing our best to keep this status quo.
An inflation clause in a contract means the developer can unilaterally increase the price of the flat you are buying after you have signed a preliminary contract. They can do so due to inflation or increased input costs. This puts clients in an uncomfortable situation, as their approved mortgage loan from their bank may no longer be enough to buy the property. Clients who do not have enough savings, or whose bank refuses to increase their mortgage loan, may be forced to withdraw from their contract and seek a new property.
In the Nesto project, we have responded to dramatically growing input costs and prices by selling the flats in phases. We do not put them on the market all at once, but rather in phases, in which we only release a certain number of flats, so we can reflect further cost increases in their current price.
Thanks to Lucron’s strategic construction planning and years of experience, our clients do not have inflation clauses in their contracts, which is a great advantage at present. With Nesto, you can be sure that once you sign a contract, the price of your flat is fixed and will not change. You will get your flat at a set price that will not increase due to inflation during construction.
In addition to inflation clause-free contracts, we have agreed a simplified mortgage application procedure with our partner banks for Nesto clients: they do not need to submit an expert’s appraisal – all they need is their ID card, proof of income and a contract, i.e. a reservation agreement and/or preliminary contract. The client receives a discount on the loan origination fee and obtains the most favourable interest rate.
A great benefit is that our clients can consult and arrange a loan at our partner banks’ branch offices that have all the necessary information about our project and their mortgage specialists give priority to our clients. If clients have any questions, they can contact us at firstname.lastname@example.org. Financing a Nesto flat is much easier than you think!