Spanish mortgages 65% cheaper since 2007

The mortgage market is currently in a more moderate position. from their highs in 2007, the monthly mortgage payment has increased from 976 euros per month on average to 378 per month in the first half of 2014, record lows. according to a report tecnocasa and Pompeu Fabra University is another indicator is the ratio between moderate monthly fee, and income has gone from receiving more than 60% of salary to 24%, a percentage "ultraconservative"

Evolution of the monthly mortgage payment

The ratio between the monthly mortgage and monthly income of the mortgaged should represent between 30% and 35%, according to experts. before the explosion of the housing bubble this ratio exceeded 60% since 2009 but a sharp drop of nearly 20 percentage points in a semester is observed. tecnocasa as this gives that "banks abruptly began to apply the credit orthodoxy that should apply from the beginning"

Ratio between the monthly mortgage and monthly income of the mortgaged

On the other hand, the percentage of mortgage financing, is down 86%, highs in the second half of 2006, up to 67% of the appraised value of the home in the first half 2014 report tecnocasa and Pompeu Fabra University indicates that "a loan to value below 70% implies an extremely conservative attitude of banks as well as a clear attempt to reduce the risk in lending to these entities granted"

Regarding the terms of mortgages, the study concludes that since 2009 a marked to grant mortgages short trend. thus, for example, in the first half of 2009 the percentage of 40-year mortgages was 45%, while for the first half of 2013 this figure was only 8%, just half that in 2012 for the first half of 2014 this trend is even more pronounced because for that period only 2.2% of mortgages were granted him to 40 years, while 30-year mortgages accounted for 60%

Also noteworthy is the significant increase since the bursting of the mortgage bubble within 30 years. in the first half of 2014 they accounted for almost 37% of the total, while in 2008 barely exceeded 16%

Term evolution of mortgages granted

How does it work and what insurance cover about unpaid rent?

 

Where bank guarantees before or personal guarantors are asking, now formalize rental insurance for better coverins. This new formula for homeowners backs are covered against possible defaults, is an increasingly used alternative that has also served to stimulate the market and allow access to rental housing tenants to remain solvent, it had no economic capacity enough to enter in your financial institution a significant amount of money in the form of guarantees

and, what covers me? Well, firstly it is a filter to select the tenant. Before signing the contract the insurance company or the realtor who intermediate in the policy make a feasibility study to ensure that the candidate is solvent

After signing the lease, it is usual that the insurance covers the payment of rents due up to a maximum of 12 months, and in some cases, unpaid bills are ahead, although it depends on the insurance

In addition, many offer legal defense to the owner to possible civil or criminal disputes with the tenant. It is also common that protect against property damage and theft of the property of the continent that may be caused by the tenant

The cost of this insurance is typically between 3% and 5% of annual income, ie, to an apartment where the rent is 700 euros per month, would cost between 252 and 420 euros per year, points as the real estate agents in the Costa del Sol InmoLaSirena

When should report the default?

Notice is paramount when that occurs so that the legal department of insurance and make the appropriate arrangements present the eviction. Also, if that is not the default complaint no progress occurs

After exhausting amicably, and filed eviction and rent completed claim within 3 months duration, the insured may request the insurer a preview of all income and unpaid until such time exceeding the franchise, which is usually the month deposit

What if I report late? After 45 days from the date of default, the insured forfeits the advancement of the rents and until there is a judgment of eviction and housing recovers

An option upward

Insurance unpaid rent is gaining popularity among homeowners. In fact, six out of 10 tenants requires additional guarantees beyond the bond and the default policy is the most demanded and has grown more in the last year, according to data from the Spanish observatory rental insurance ( OESA) , and, it seems, are happy. nearly 70% of homeowners who entered into rental insurance renews what they value most are offering coverage (27%), cost (22%), speed of response (18%) and the tenant's credit report (12%)

Can the tenant change the locks on her apartment to rent?

The tenant may change the locks of the apartment for rent

when a tenant to rent a new apartment moves always arises whether to change the lock, because it may happen that the previous tenants kept a set of keys. from api of Catalonia recommend changing to a matter of safety and tranquility. further indicate that the new tenant has every right to do so

This explains that the home is rented for use and enjoyment. in this sense, indicates that you can change the locks without permission and without informing the owner. otherwise, it is deemed appropriate and convenient let them know to maintain a positive relationship even more clear that it is not mandatory

if the lock is changed, another question that arises is whether to give a copy of the new keys. the answer lies in legislation. the Spanish Constitution states in Article 18.2 that the domicile is inviolable

so being rented flat the residence where you live, not the owner, if he decides to enter it without your permission, would be committing an offense of burglary. addition, Article 202 of the penal code states that the individual does not live in the dwelling can not be accessed without explicit consent. therefore, the owner has no right to demand a copy of the key to the new lock

in fact, if you're one of tenant rights, and probably most important, is that the owner can not access the property in any case. just at the time that the landlord is leaving the floor, and with prior permission of the lessee, can enter the house to check the status of it and make the necessary repairs. In addition, the tenant must give the keys to the landlord and the previous lock

Does the landlord can change the locks?

the landlord can not enter the dwelling without permission and for any reason. at the same time, you can not change the lock. "Is a completely illegal action that many homeowners incur when tenants fail to pay the rent receipt or made a blight on housing," stress from api of Catalonia

precisely based on this recurring reality, the law of leases has undergone some changes so that the owner does not see the need to "take the law into their own hands" and expect sufficiently effective legal tools to put solution to this awkward situation

Economic keys to a good start 2014

Tips to survive the January slope

Wednesday, January 15, 2014

Take advantage of tax benefits, invest head and not get carried away by the 'bargains' are some of the keys to successfully tackle the dreaded hill of January. through a Decalogue, the European association of financial advisors (EFPA) gives the keys to a good start 2014

- Eliminate unnecessary expenses, especially of products and services used or sometimes
- Out of debt that can not be paid. for it is desirable to organize and analyze the budget to meet the fixed costs
- Do not forget that increases the price of many commodities, such as electricity bill whose cost has increased 2.3 percent, transport and motorway tolls
- Be aware of the tax benefits of some products such as mutual funds and pension plans
- You can reduce the overall personal income tax base with contributions to pension plans in which there is no charge for the benefits that are generated
- Review the conditions of financial products, many of which expire or change with the new year
- Invest in profitable products with professional advice, especially after the return of deposits has fallen sharply due to limitations of Spain or the bank rate cut by the European issuer
- Not improvise and go to a personalized financial plan with the help of a consultant to get more out of savings
- Weigh the request for a loan to be a risky product. learn, invest time and review contracts with banks
- Pay attention to you default interest and fees related to avoid unpleasant surprises
- Doubt the 'bargains' that present certain financial products and actually hide very high interest rates and be careful not to make use of overdraft credit cards
"In a crisis situation like this, and given that the slopes of January the last seven years have been very hard, I would say that this beginning of year 2014 is best presented" detailed to idealistanews director in Spain of EFPA andrea-candidate races, do not hesitate to say that now "we can be more optimistic as the economic recovery in the eurozone is already a reality and the situation in the financial markets has significantly improved (reduced volatility assets and increased profitability) "
While improving the portfolio considered candi-key races go to a qualified financial advisor in order to "ensure that it is investing in the best product"

The purchase of a Home as an investment vs Stocks

8 aspects that question the buy

Friday, January 10, 2014 -

In recent years bulding was positioned as a favorite investment of the Spaniards. Thinking about the price of housing never goes encouraged many people to buy a flat with the intention of selling in the short term to achieve major gains. However, , a home that is not used is a bad investment. Further believes that investing in a home takes more costs to invest in stock market

We can consider eight arguments:

1. housing is a valuable asset but believes that a house that is not used is a bad investment. "You have to paint it, fix it, maintain it, pay for electricity, water, taxes ... If we estimate that the annual maintenance cost is 1% of its value in a hundred years will have spent on maintaining housing an amount equal to what it cost us, "judgment

2. indicates that for rented accommodation had been as profitable as the bag in the last 100 years should have earned an annual return of 6.08%, which is the actual appreciation rate dow jones bag wall street in the last 100 years, including dividends and adjusted for inflation

3. It's Not true that the price of the houses dont goes down

4. All investors can buy shares but is not possible for everyone to purchase houses for them rented.

5. Investing in housing costs leads many to invest in stock market. Input, have to pay for a flat 7% of transfer tax, to which must be added between 1% and 3% in registration fees and notary. In total, the cost ranges between 8% and 10% of the home value. But the fees and expenses to buy shares ranging between 0.2% and 0.5%

6. To buy a good house needed a lot of money. For this reason, many people invest in low-quality housing and unattractive areas, which in the long term ends up not being profitable

7. Housing investment diversification does not allow the majority of investors, they should put all their savings in a single well

8. Manage a portfolio of stocks is easier to manage property assets, says Serrano. Buying or selling a home is more complicated and takes longer to do the same with actions

8 reasons to trust your rental property to a realtor

Friday, January 3rd,

Instruct an estate the process of finding a tenant for the apartment you want to rent out can save the owner time and work. For example, the real estate consultant about the price of rent, can make a more comprehensive selection, can arrange the collection of the monthly or manage rental insurance

What does a realtor in the process of renting a home?

- Search the tenant: the amount of people who are informed that this apartment is for rent is much higher than that see the ad in the street, and rent much earlier. the realtor has photos of the floor and makes a screen and the prospective tenant. if an individual is interested in seeing the floor are the property of those who are responsible to teach and not have to be outstanding to adjust schedule

- Select the tenant: query any database delinquent tenants requests and collects all the necessary to ensure that documentation is a solvent tenant. So asks a bank guarantee, payroll for the last three months, and checks that all this documentation is real

- Advisor on the rental price: Agencies know what you can ask for the rent of your apartment as well know the market

- Advisor on the rental agreement: although it seems a simple thing to do things right, a poorly written contract or not following the law can be a problem for the owner. Agencies are to date with the latest updates such as those contained in Measures Act Promoting Flexibility and Market Rental Housing which was adopted in June 2013

- Make the collection of the monthly payment if it is not done by bank transfer: this is long overdue in homes rented by students or by several people, each gets its share and then pay the full monthly payment on real estate

- Manages rental insurance to avoid and resolve situations of default

- Responsible of Payment of water bills, electricity, gas ... This option is very convenient if you want to terminate supplies to give as high supply companies charge

- Dissemination of flat for rent in media, internet and social networks the floor

Of course the downside is that this has a cost. In some communities the realtor only charges the landlord one month's fee plus VAT but can also charge in half each half to the landlord and the tenant half. other will charge the full monthly fee plus 21% VAT each, landlord and tenant