The apartments offered by banks are not always cheaper

Although the initial price of housing may seem an opportunity to assume a low price, the final cost, including the necessary reforms, it can be high The apartments offered by banks are not always cheaper versus those offered by agencies and individuals. In addition, a lower price is a result of the state of housing and the need for a "profound reform". This is the conclusion drawn from a study by the Organization of Consumers and Users (OCU).

Despite popular belief, the bank is the owner of an apartment is no guarantee that it is a good opportunity. Thus, after an analysis of 54 real estate properties, the study shows that half of the banks visited flooring needed updating, which in some cases had to be completed.

Thus, although the initial price of housing may seem an opportunity to assume a low price, the final cost, including the necessary reforms can be high. Also, keep in mind that at that price must be added the cost of sales, according to the autonomous region, may amount to 14% of value.

In addition, funding is obtained not always an advantage, according to the organization. The usual spreads offered by banks are between 1.6% and 3%, depending on the degree of relationship with the company by recruiting other products. In this context, the study shows that the cheapest differential stood at 0.9% for a flat with a high price.

In this line, the analysis shows that most banks finance 80% of the value of the home, while in 3 cases 100% financing offered, albeit with a less favorable terms for the interest rate and the added expenses.

So, OCU recommends considering that, in comparing prices between agencies, banks and individuals, the latter do not charge commission to the buyer, while some agencies do. In addition the organization advised to invest in housing that exceed four times the net family income.

In this context, he said that the brick has risks, high acquisition costs, taxes and management, and low liquidity. Thus, it states that "there is a comparable investment with fixed term deposits." Thus, the organization indicates that for a housing investment is profitable, the profitability of this should exceed 5% to offset the costs of purchase, the rent, the risk of default and damage.

A simple way to calculate the right price for an apartment

If the rent ten years rather than the total amount invested in a house is recovered, it is expensive

Housing is the most important investment made by most people throughout their lives. Right or wrong at the right price can mean long years of hardships to pay off the floor, with a greater risk if one stays unemployed, or, on the contrary, repay earlier letters without entailing an effort stifling to the family economy. But is it possible to find out what is the right price for a house? It is possible, from the value of rents and in a very simple technique known as 'cap rate', or capitalization rate, which is used by professional investors to find out whether the price of a real estate asset is right, is is undervalued or overvalued.

The capitalization rate applied to housing, is the ratio of the annual rent, net of expenses of community, more than that paid by the floor. For example, if a house is purchased for 300,000 euros and is rented for 2,500 euros a month, the landlord gets an annual income of 30,000 euros. Its capitalization rate would then be 10% and that in ten years would recover the investment in the property. If, however, perceived the rent is 1,250 euros per month, the annual income would be 15,000 euros and a capitalization rate of 5%, which would take twenty years to recover the investment.

The homeowner could have done something else with the money, for example, to acquire public debt to ten years at an interest rate of 3%. Public debt is investment assets considered safer because it is assumed that the State always pays what he owes, at least in the advanced countries. The capitalization rate of real estate assets should obviously be higher than the interest rate on the public debt because investment in them is much more risky. The house will always be there, but while the public debt can be sold in the market instantly, if necessary, the housing can take months, or even years, to be alienated because the real estate market is much less liquid than the debt. In addition, during the time elapsed since the house is put on sale until it, the real estate market conditions may have changed substantially and obtained less money than was originally thought materializes. For this reason, housing investment is riskier than government debt.

This fact follows that if the interest rate on assets such as government bonds to ten years is between 3% and 5%, the capitalization rate of investment in real estate assets should be between 10% and 15 %. Consequently, any cost involving investment in housing, whether rented, can not be recovered within a maximum period of ten years means that housing is overvalued.

Why renting is used as a benchmark to calculate the capitalization rate and thus whether or not a home is overvalued? Because, when renting an apartment, a person or a family you consider your monthly income and you need to spend to eat, dress, go to work, pay for college kids, etc. From there, calculate how much you can pay rent, so that it adapts to real economic possibilities of the family. That rent is the rent you get the homeowner on their investment. Therefore, if you are thinking about buying a home, learn first of the rents of similar dwellings and then calculate the capitalization rate. You will know if you are overvalued or if the price is right.

Things to consider before buying a home

The purchase of a home is one of the most important economic decisions we make in our lives. It is a step that should previously and well prepared. Here are some key things to consider before giving it here

he purchase of a home is one of the fundamental economic decisions, if not the most, we took over our lives. Involves making a significant economic effort into debt for years and even if we have bad luck, so the risk of losing by default on the mortgage. In addition, normal for most people is that the house you buy is where dwell the rest of his days. It is therefore a decisive step, to make it well, you need a lot of preparation.

The first thing to consider is how much money you can afford the home. This issue is too often forgotten during the years of the housing bubble and people came to pay for housing up to nine and a half times the annual income of the family unit, in mortgages thirties. This meant spending more than half of the family income to pay the mortgage, which was a big risk because if one of the two members lost their jobs or their business project broke down dramatically the number of people professional services required, that family would have many problems to face the payment of the bill from the floor. It is recommended that not a home page for more than three or three and a half times the annual income of a family.

Then you have to remember that in addition to price, tackling all taxes and deed costs related to the purchase of housing and related taxes such as the real estate property tax or garbage rates many Councils-. And you also have to include community fees and insurance related to housing.

Once these calculations to see how much it really costs to house one should explore the neighborhood where the property is located and see if there is a reasonable setting shops for daily shopping; bars, restaurants and other entertainment; shopping centers; health centers; etc. It is also advisable to first find out what means of transportation for the district, especially when it comes to new neighborhoods. Do not forget that it is likely many years living in that house and all those things make your life easier.

When you start the process you can go to any agency of real estate, but do not forget that they also have another alternative: specialized Internet portals in all matters relating to the purchase or rental of housing. These portals you can make things easier because you can set the search criteria that interest you, such as location, type of housing, size and number of rooms or price. However, you should note that the portals will only find property information to be announced there. Therefore, it should complement the use of Internet with an on-site examination.

Normal in the process of buying a home is that you take some time to find one that you really like and to your wishes and possibilities, or simply one that suits you fits. Typically, you are having seen several homes before choosing one. In this regard, it should make a picture with the pros and cons of each floor that is visited and relate them to the list of things you want, as the floor is outside or not, whether it is in a complex with gardens and swimming pool, if you have air conditioning, storage and / or parking space, the age of the building, etc. All this will help in the selection process.

However, keep in mind two things. Finding the right home can take time. Therefore, do not be discouraged if you think you have not come up with what you want, do not panic and do not rush. You can, and should, afford to wait until you find what feels comfortable and can afford.

Foreign investors flee the dollar

In recent months the real estate paradise of the world was the United States, because it had the best properties at the best prices, providing an opportunity for investors to build an estate in one of the most powerful countries in the world. After a few months the dollar experienced a kind of economic roller coaster now recovering rapidly, which has left many investors with no possibility of making strategic moves.

The currencies of other countries have begun to fall against the dollar, which has been noticed in property prices that only months ago were at a very affordable price, and are now unfordable for more than a few. These new quotas for sale of real estate in the US could re formulation housing markets of external trade.

Clear that foreign buyers have been an important part of the revival of the US economy, and not only this new surge helps protect the incomes of Americans, but also causes many serious buyers looking for a property there, because the Goodwill is a great reward.

There has been an increase in US real estate value of 5 percent, which is a result of the high profits of 2012 and 2013, however the story for foreign profit-reward play different.

In Miami, one of the most famous places in America to live, prices of real estate increased incredibly, making for investors as the Russians (which are a force investors very present in that area of ​​the country) very difficult to invest in rubles. In New York, which is officially the most expensive in the world to buy real estate, the increase was 24 percent; Phoenix an increase of 20 percent was only in buildings and houses.

Wealthy investors from South America and China are looking for ways to be of properties in the US even to let them uninhabited, which is like putting money in the bank and wait for the interests it inflates, because as we mentioned above, the gain favors the value of a property can even double depending on the economic run the country.

Many investors buy properties as summer homes and vacation leave vacant long.

Sareb sold more than 24000 private homes in two years

The president of the 'bad bank' Jaime Echegoyen, appeared at his own request in the commission of Economy of the Congress to take stock. He announced that the Sareb has entered two years more than 8,000 million euros and has been able to repay 5,400 million of debt 50,700. So far this year, it has sold 5,000 properties Sareb individuals. 

The Management Company assets from the Bank Restructuring ( Sareb ), better known as the Spanish "bad bank" has sold in the past two years 24,000 private homes, and has reduced by 6,500 million euros its troubled assets, according to its president, Jaime Echegoyen. Echegoyen has appeared at his own request in the commission of Economy of the Congress, which took stock of the last year of the entity. In these two years have also managed over 20,000 business proposals, and there have been 25 major sales operations wholesale portfolios of assets, primarily loans. With all this, detailed Echegoyen, Sareb entered more than 8,000 million euros and has been able to repay 5,400 million of the 50.700 million private debt that had to issue to seize assets toxic banks. Only in 2014, explained Echegoyen, more than 15,300 properties were sold to individuals and more than 500 floors were awarded, bringing the year, revenues reached 5.113 million euros and could write off 50% more debt in 2013. Also the operating loss to 62 million euros were reduced from 144 the previous year, although the final result for the year also accused provisions. In so far this year -between January and June-Sareb Property has sold 5,000 individuals, representing a rate of 28 per day; and 60% of these operations, clarified Echegoyen, they have been carried out since the balance of the promoters, to facilitate the sale of homes contained as collateral for its loans.

Most debtors, SMEs Although Sareb is not a bank and can not offer funding to businesses, he said, most of their borrowers are SMEs, which could not without help reduce debt ; and that's where the company can offer "time and flexibility". In the first half have closed 23 sales transactions land, 43% more than the same period last year and have quadrupled revenues. Sareb not is an organization with social purposes, he noted Echegoyen, and has no mortgages to individuals, but is aware of its responsibility and the "problems faced by many families to access adequate housing ", which has made ​​a public commitment to collaborate "as far as possible" to mitigate this problem. The result of this commitment has been on temporary housing with sustainable holiday destination and by the end of 2013 were put on the market 2,000 low-income households that manage regional governments . There are agreements with Catalonia, Aragon, Galicia and the Canary Islands , the latter pending closing. Echegoyen announced that Sareb hopes to extend these practices to other types of assets, and not limit them only to housing. It also referred to the coverage of interest rates contracted in August 2012, it has worked as a ground clause has prevented from benefiting from the fall in the Euribor. Nevertheless, Echegoyen has argued that it has been an instrument that has eliminated the uncertainty associated with interest rates and establish the financial costs of around 1%. 

The household debt with banks fell by 4% and continues to minimum 9 years

The annual cut recorded by loans for the purchase of housing was the main reason for the fall in credit to households. Compared with the previous month, the household debt remained virtually unchanged, although slightly lower.

The debt of Spanish families with financial institutions fell 3.9% in May compared with the same month of 2014, which puts the figure at 736 080 million euros for the third consecutive month to its lowest level since August 2006. 

According to the updated data today by the Bank of Spain, the annual cut recorded by loans for the purchase of housing was the main reason for the fall in credit to households, since in May 2014 amounted to 600.439 million euros, 4 , 1% less than the 575.277 million euros in May this year. Compared with the previous month, the household debt remained virtually unchanged, although slightly lower, as it went from 737 983 000 (according to the final data) to 736 080 million. As for loans to companies, it has also been reduced in May from the previous year, by 5.1% to 941.345 million euros, while in April the decline has been only 0.68%.