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.