MonthJuly 2019

Buy or Rent: Where to Save the Most Money | Pay Loan

Many people are considering buying a home. But the decision is not always easy, after all, it is of great importance. It also seems that the framework conditions have been better.

In recent years, prices for home ownership have increased significantly, especially in German cities. There, the real estate prices seem to know only one direction, namely the way up. That is why quite a few buyers are asking themselves whether it is even worthwhile to buy a house or an apartment. Maybe it could be better to do without a home and continue to live for rent.

Property purchase

Property purchase

Whether it actually makes sense to buy a home, can not say flat rate. If you want to know exactly, you must recalculate and check for yourself whether a purchase pays off. It has to be determined which costs are incurred now and which costs result from the acquisition of a home. At least it can be answered in such a way, whether a property purchase from a financial point of view is worthwhile.

Buy and rent in comparison

Buy and rent in comparison

It usually turns out that buying a home is a good choice. Reason for this are the permanently missing rental payments. Of course, there are years to pay loan installments, but then it is over. On the other hand, there are additional costs that keep recurring, in particular the property tax and, of course, the costs of maintaining the property.

The tenant, however, only makes his monthly rental payments. However, it should be noted that the rent is calculated very similar or the landlord in the costs already taxes, possible repair costs, etc. taken into account.

In general, it has been true for decades: Rents are rising faster than pensions. This means that in old age an increasing part of the rent has to be spent on the rental payments. Thus, pensioners are less and less money available for other things. If you live in your own home, you do not have this problem.

Not only the purchase prices are rising

cash

As mentioned in the introduction, many prospective buyers are unsettled because property prices have risen sharply in recent years. But the development in rents is not much different. Who lives for rent, although not constantly receives a rent increase, but especially with tenant changes is usually pitched strong. In addition, the increases in the long term can not be avoided.

Last year, the Good Finance commissioned real estate companies to determine whether it would be better to buy residential property or continue to live for rent. The result of the study is clear, the costs of living in one’s own home are much lower than the rental costs.

However, the experts note that the cost advantage can vary greatly and is significantly influenced by the location of the property. In the overall average for Germany, the cost advantage of using residential property amounts to 41 percent. The range of benefits ranges from 13 to 67 percent, depending on where you live.

In addition, the experts found that the price trend is shifting. Increasingly often, a significant increase in real estate prices is also to be noted in middle-class cities. More and more prospective buyers are looking around in the middle-class cities – in the hope that they will be able to acquire excellent real estate for a reasonable price there. However, nobody should be unsettled by this development, because the experts do not see signs of the formation of a bubble.

Ten Lending Or Principles of Responsible Lending

Before you apply for a loan, it is a good idea to know a few important things. What are they like? We bring you an important ten loans that we recommend to read to anyone who is considering any loan. http://www.icgsdeepwater.com/2019/07/17/business-loans-and-grants-for-bad-credit-small-business-loan-with-bad-credit/ has examples

1) Don’t be trusting

1) Don

There are dozens of different providers on the market today, from which you can choose the right one. It is important not to trust but to check. Especially in the private non-banking segment, there are many dubious providers that are good to watch out for. The ideal is to find and read the various reviews and reviews, which today is no problem to find in many places on the Internet.

2) Do not nod at the first offer

2) Do not nod at the first offer

Do you find the recommended loan offer really good? Beware of rash decisions and never nod to the first offer. Take the time to think and see if there is another, better option or whether the offered one really can meet your expectations. The hasty signing of contracts can lead to a number of problems in the future. You can compare loans and providers today on many independent web portals that bring together all the information you need in one place.

3) Borrow only what you need

3) Borrow only what you need

Reconstruction of real estate, household equipment, car for family or work. These are all things you cannot do without. Borrowing them can be quite a good choice. And what are useless things you should not borrow? The most expensive electronics or computer technology, tens of thousands of mobile phones, Christmas gifts, holidays, and dozens of diverse wastes.

4) Do not repay longer than product life

4) Do not repay longer than product life

When planning a repayment schedule, you also need to take into account how long the thing you buy for money will serve you in total. If you pay long after you have paid it, your repayment is set up correctly. However, if the thing is over and you still pay it, it’s a mistake. Both when planning the payment schedule and when choosing the thing you want to get for the money.

5) Choose installments according to your possibilities

5) Choose installments according to your possibilities

It is tempting to have the loan repaid as quickly as possible. In terms of both profitability and termination. However, be sure to consider your options when choosing the amount of the installment. You should neither exceed the installment nor be the same. It should always be in your power, with the certainty that you will still have the payout money as a certain reserve for contingencies.

6) Read what you sign

6) Read what you sign

Remember that whatever your bank or non-banking company tells you, always make sure it’s written in a similar way. Never sign something that you don’t read. Once your signature is on the contract or other deed, it is very difficult to prove that the original agreement was different. For demanding contracts, ask for a study at home.

7) Do not look only at interest

7) Do not look only at interest

A favorable loan is always a necessity. But when comparing, do not just look at the interest rate. This is only part of the factors that affect the advantage or disadvantage of the loan. Various fees, additional payments and much more can also play a role. This is summed up by the APR. The annual percentage rate of charge is then calculated from the principal you have to pay. The lower the value, the better for you.

8) Think of the future life

8) Think of the future life

Getting a loan also means paying your obligations on time. Why? Because it may not be your only loan. Non-payment of obligations under the contract exposes you to the risk of entry in the registers. This will not only result in some providers refusing you in the future, but also those who do not refuse will only offer you loans that are very disadvantageous because of their high risk.

9) Do not borrow on current financial obligations

9) Do not borrow on current financial obligations

Do you have a loan that you cannot manage to repay and therefore you want to take another loan to pay the previous one? A big mistake that often leads to a debt spiral that can end in execution. If you are unable to meet your current obligations, try to make arrangements with your creditors in smaller installments, ask for refinancing or consolidation, or consider options such as personal bankruptcy.

10) Consider rejection as a positive

10) Consider rejection as a positive

Solid banks and non-banking companies do not lend to everyone. If your loan application is rejected, it is not just to avoid exposure to the lender. This is also because of your protection, where it has been assessed that a financial commitment may be detrimental to your potential or past. Feel the rejection as a positive, and never fall into the arms of questionable providers who approve your application, but under conditions that are extremely disadvantageous.

4 keys to request your mortgage loan from a municipal bank

If you have decided to apply for a loan to acquire a home, it is important to consider that there are different financing options, since many times the image you have is that banks are the only ones that grant this type of credit in the safest way possible.

What you should know is that currently you can also apply for mortgage loans to the municipal savings banks and although so far this option is not offered by all of the savings banks, as of the first quarter of 2017, more institutions will have those that have this product available. If you still wonder why you should consider municipal savings banks as an option, we present 4 advantages:

The savings banks focus on sectors with lower resources

Making it possible for people with lower incomes to access this product. Many of these institutions have their headquarters in different provinces, so much of their customers prefer them for the convenience it represents. If you live inside the country, it is an ideal option for credit.

When we are about to buy a home, any help that can be obtained is welcome, since it is not an ordinary purchase, but it could easily be qualified as the most important of our life.Although the credit is valid for everything related to housing, it has been observed that most of the loans granted by the funds have been used for construction or remodeling (improvement) of the home. 

The savings banks have more experience with clients whose income is informal

home loan with money cash

So that although they might be able to refuse it at a bank, they are more likely to be granted financing by these institutions. Evaluate your financial characteristics to see which option suits you best and which institution is offering you a better deal, whether a box or a bank. To choose, use web comparators such as the Poon Christels mortgage credit comparator.

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