‘Conditions of the European property market in 2016’ is an ebook intended to guide real estate investors on the steps to follow during 2016.
The guide ‘Conditions of the European property market in 2016’ is, or should be, the new bedside book for all professionals including in the real estate industry. The reason? In it you will find all the necessary information to develop your work activity during this year 2016.
This ebook reviews the main conditioning factors of the property markets at a European level: current situation, benefits of investing in different types of properties (commercial, residential …), locations with greater potential for development and growth, etc.
If you want to be able to perfectly advise your clients or create a new portfolio of securities around the whole of Europe, you are interested in downloading this guide.
In ‘Conditions of the European property market in 2016’ other aspects are also discussed, apart from those mentioned above, such as the different ways of obtaining wealth to be able to climb rungs in the European market or the steps that beginners must take in this industry.
A mandatory reading for professionals and experts in Real Estate who will be able to increase their sales weapons through advice and tips to gain an advantage over others, clues to discover new business opportunities, recommendations to increase savings and much more.
Realtors interested in investing in the eastern coast will find in Tajarat properties an important ally knowledgeable about the sector.
Grupo Esmeralda has extensive experience in Real Estate and has an extensive portfolio of real estate securities in Calpe, the epicenter of the Costa Blanca . Download the ebook and, if you want more information, contact us.
8 considerations before signing a mortgage
The costs of a mortgage and the sale of an apartment are usually higher than one expects. ADICAE gives 8 tips to keep in mind before signing.
You have already found the house of your dreams and have agreed with the owner or the real estate agency to purchase the property. Okay, now for the worst part: talking to the bank. The banks are the ones that must provide you with the credit to be able to make the acquisition effective, this is how the dreaded mortgages enter the scene.
Although in recent years the situation of these financial products has changed a lot due, among other causes, to the fall of the Euribor and the legal invalidity of policies such as ‘the floor clause’, it is still necessary to tread lightly when it comes to sign a mortgage .
Interest rates, life insurance, appraisal, installments … These are terms that if you don’t know, you should start doing it, because you are going to hear them a lot in the coming months (and years).
Directly related to them, are these 8 considerations given by ADICAE (Association of Users of Banks, Savings Banks and Insurance) and that must be taken into account before signing a mortgage and committing to a bank in the long term:
Compare between different banks: Before joining an entity, it is worth checking in several boxes what are their conditions to grant a mortgage. With all the information under your belt, you will be able to compare and decide which one offers the best conditions or best suits your particularities.
Some of the aspects that you should assess well are the guarantees they require, the payment facilities or the concessions for delay. Possessing all this knowledge will also help you to be able to negotiate with the bank you finally choose.
Negotiate the mortgage: We already advanced it in the previous point, even if you have chosen a bank, that does not mean that you have to abide by the conditions that they impose on you. It can be negotiated, indeed, it must be negotiated.
By this we mean the products that finance companies include within the mortgage contract, such as insurance or credit cards. Find the most useful and the one with the lowest annual cost.
Do not ask for 100% of the cost of the house: Although currently most banks are reluctant to finance 100% of the property, if you have advantageous conditions it is possible that they will grant it to you. Still, it is not convenient for you to accept it.
It is preferable to have at least 20% of the price saved to have a lower mortgage burden and less debt with the bank. With this, you will be more comfortable and you can continue saving to advance deadlines later.
Study the different fees: Many people about to take out a mortgage only look at what they are going to have to pay each month, without paying attention to other charges derived from the product. It is important that you analyze amounts such as the base interest rate, the spread, the mitigating factors, etc.
You also have to be especially careful with the increasing quota that represents an annual increase that in the long run can generate a significant outlay.
Set a logical term: When signing a mortgage, banks usually give different terms of time. It is not advisable to set it at ten years and go drowned, but neither at 40, since it is a long time and you cannot know what situation you will find yourself in.
The most common terms are those that range between 20 and 30 years, with the condition of being able to advance money from time to time to shorten them.
Be careful with the Euribor: This benchmark index is the one that banks use to establish their interests. It is currently very low, which is beneficial for the mortgaged, but at some point it has to go up.
So it is convenient that you consider in advance if it is convenient for you to fix the mortgage to a fixed term (you will always pay the same) or to a variable one (the conditions will be reviewed from time to time).
Analyze the fine print: When you have the final mortgage contract, it is advisable that you turn to a lawyer or an expert in the field, such as your real estate agency , to help you inspect all the points of the contract.
Banks sometimes camouflage excessive clauses in the fine print of the document. The most recent case is that of the floor clauses that were declared abusive by the Supreme Court .
Try to always have some money saved: It is very risky to invest all your money to pay for the mortgage. Try to have at least 10% of the value of the home saved, with this you make sure you have a cushion of money for contingencies that will surely arise over the years.
Many experts affirm that the mortgage should not suppose more than 30% of your monthly income, in this way you can face the rest of the expenses and, even, you can save a little.
Is it a good time to buy a flat on the coast?
More accessible financing, new construction, credit facilities for young people … We explain why it is a good time to buy an apartment.
After the equator of 2016 we can affirm that this is a good time to buy a flat. At the beginning of the year, good omens were already anticipated for the brick sector with data such as that provided by the National Institute of Statistics (INE) , which showed an increase in real estate sales of 7.3% only during the January .
To date, these numbers have been ‘in crescendo’ establishing this forecast. But what are the reasons that confirm this trend? We list them below.
Prices are going up.
The upward trend in housing costs is a reality, but it differs by area. In large cities such as Madrid and Barcelona, prices have grown considerably, while in the peripheries and towns the increase has been more slight.
It also depends on whether it is a new-build apartment or a second-hand one, the former have experienced a higher rise than used apartments. Some experts during the first months of the year predicted a greater flood, but the political situation in the country, with new elections involved, has slowed this escalation.
Financing is more accessible.
Banks have loosened the rope with regard to access to credit. The time of panic is over and it seems that little by little things are returning to normal. So banks have chosen to be more flexible and are even looking to customers to offer financing.
Even so, there are still some minimum requirements to be able to access a mortgage: a saving of 20% of the total value of the property, that the monthly payment does not suppose more than 35% of the applicant’s income, and an increase in the payment of interest due to the negative levels of the Euribor .
More shopping facilities for young people.
Those most interested in being able to access a home are young people who are in an age range between 25 and 35 years. The notable drop in prices that occurred during the crisis years has led to the fact that there is currently a wide range of prices and, therefore, a wide offer that adapts to both medium and high incomes.
In addition, the slight growth in employment and the greater stability of jobs are factors that also contribute to younger people being able to choose to buy a house. Despite everything, banks and financial institutions continue to be quite demanding with these buyer profiles and demand a monthly income of around 1,600 euros.
Increased supply of new construction.
If you walk around your city, you will surely realize that the cranes have invaded the periphery again. This is a sign that the real estate industry is recovering, since it is estimated that 100,000 visas were processed in 2016 for the construction of new homes.
This type of property is mainly aimed at investors and developers, since the lack of good soil favors speculative processes. New-build homes tend to have much higher prices than second-hand homes, so only medium and high-income homes will be able to access them.
This in regards to what refers to the habitual residence, since second homes or vacation homes have other peculiarities. Although these buying processes are slightly different, it is also a good time to buy flats on the coast .
Tourist areas such as the Costa Brava or the Costa Blanca are highly desired destinations for Spaniards to spend their vacations. Homes in these areas suffered a consistent drop in prices during the years of the housing crisis, but are currently recovering at a faster-than-average rate.
Therefore, the right time to buy a second residence by the sea is now, because prices are starting to rise but have not yet skyrocketed.
Apartments with sea views, townhouses in residential developments or villas on private plots are the most desirable options in this market that is beginning to move again.
If you are interested in getting one of these properties, it is best to consult a real estate agency in the area in which you are interested in acquiring the house, since they are the ones who know the land best.
At blue world city islamabad we have some of the best properties on the Costa Blanca, specifically in Calpe . We invite you to visit our property catalog and to get in touch with us if you have any questions. We offer you advice without obligation and we help you in your purchase process.