Care with the mortgages multidiscerns!
14.11.2008
Considering the current international conjuncture and the local real estate crisis that the access to the credit is very difficult, is beginning speaking about the phenomenon of the mortgages multicurrency to itself. These are not precisely a very new financial instrument; the truth is that they already take many years with us, but yes that there are a very little used product. And the reason is well simple to explain: it has the highest risk, I it repeat the highest risk.
Nobody who has not a few wide financial knowledge should hire this product that to simple sight seems very simple and highly profitable, but that hides many peculiarities and surprises behind.
A multidivided mortgage is something so simple as to hire a mortgage in another currency different from the euro, like yenes or dollars that are the most common. The advantage that they have that it is they make use that the interest rates of these coins are lower. In case of the dollar it is 2 % and in that of the yen, 0,3 %, opposite to the euro that is in 3 %.
Why are not they advisable? So, for several motives. These mortgages usually have a differential of cost major than the normal one in Spain. Namely that if a mortgage in euros has a cost of Euribor more 0,5 % for saying something, in another currency usually has a difference of 1,5 %. Also, the hiring commissions are much higher. All this does that the differential that we were going to save ourselves diminishes significantly. But the principal reason of his risk is on that, when we hire a mortgage of this type, we are speculating on the exchange rate of the coins. What means this?
Since that we request the loan in yenes with the current change against the fixed euro, but to return this quantity the change is variable. If the market us is favorable we will have to return a minor mortgage quantity, the house can go out for us for half of price, but but it is like that, it is possible that we have to pay the double or triple of the credit doing unviably that we could pay it. Said otherwise, we would do, accidentally skylight, carry-trade. A word that to many you will sound, but that almost nobody will know what it means. Since it is simple to explain: carry-trade is to get into debt to low cost in yenes and to buy debt of high interest in euros to gain the differential. This is an operation of high risk that only professionals do and that these days is giving more than one headache.
My recommendation is that nobody allows to be touched by this possibility because it has the same possibilities of gaining that playing the roulette white person or black in the casino: one in two. Do not forget it!
A year of free mortgage for doing contributions to the pension plan
14.11.2008
This is the curious offer that Bancaja does. In the crisis times that we live through the drawings they have become fashionable that never. It is already known that the people we usually look for a rapid exit to our problems and the financial institutions know it.
Bancaja will avoid the entire payment of a mortgage between his clients who do a contribution to his pension plan and also between the new clients who hire the product. There will have right to enter the drawing all those that do contributions or hire some Bancaja pension plan between November 1 and December 31 of this year. For those that do reach port between 300 and 3.000 euros, the entity will draw lots up to 40 mortgages Bancaja with a maximum limit for 9.600 Euros brutto for mortgage. Those that reach port between 3.000 and 10.000 euros will receive a gift MP4. The contributions that go beyond 10.000 euros will realize fertilizers in account, with an extreme amount for 3.000 euros. This way those that do contributions between 10.000 euros and 40.000 euros will benefit from a 1 % in cash and 1 % in the plan of free saving DoblePlan of the Valencian entity. Beyond 40.000 euros the clients will receive 3 % in cash more 1 % in DoblePlan. The only requisite to be fulfilled for the participant, without being provided with the contribution or hiring of the plan, is that a minimum of two years must remain inside the entity. Nevertheless they will be able to place them inside a wide scale of plans both of fixed revenue and of variable revenue that offers the entity without any type of expense.
This is one of many offers that we will see up to the end of the year and more bearing in mind the moment so bad that the pension plans happen. It is not a bad alternative although personally I have ever been lover either of the drawings or gifts. I prefer the offers in cash and without conditions!
How much must the apartments fall down so that the real estate market normalizes?
13.11.2008
This is the question of the million dollars and it is clear that the answer is not simple. In the first, it would be necessary to know what we understand for normal real estate market in Spain, since for years in this country more housings have been constructed for year than in the whole together United Kingdom, France and Germany. Which says to us that a descent of 50 % or more, as the one that is taking place, would leave us with a market similar to our neighbors of the north. But there is some differences between they and we. The first one: the big importance of the residential tourism; that is to say these "grandpas" of the United Kingdom who buy to themselves a house to spend the half or all his retirement to the heat of the Spanish solecito or these German families that have his second residence in the Balearic Islands and his weekends happen here. Second: the market of the rent scarcely supposes 7 % of the entire real estate market in Spain, when in our neighbors it represents more than 40 %. And third: this emulation for the property of the tocho that every Spanish takes inside and who till not long ago had made think to many that the housings never lower. Since yes that go down, yes!
Bearing in mind all this it is difficult to think that it should turn to the madness of the latter years, but the market is clear that it must become stable and for it several things must happen. The financial system has to work again since without financing it is not possible to buy and to sell housings. The prices must go down: up to where? so until they represent a reasonable acquisition cost. A family can never destine any more than 40 % of his income because if it does it, one enters an excessive indebtedness. In this epoch of labor instability even this porcentage has to diminish. Also, the financial cost must diminish or, rather, it must become stable since there are the sudden changes those that create the problems to the families. Another measurement to take is that the town halls have to stop speculating on the soil to be financed because otherwise, already we have verified it, the costs of the new housings go off. And finally, the promoters who stay on the market, must change his mentality: it is not possible to load these excessive margins that hann received till now!
The Euribor will begin to make happy from December
13.11.2008
Finally many families might begin waking up of the nightmare of the subidad of quotas of the mortgages! The November Euribor will be below the number that it marked one year ago and the descent will move in the reviews of mortgages of December. This will give a breather to the most indebted families allowing the reduction of his monthly quotas.
According to most of the experts, the Euribor might fall down below 4 % at the end of November, what will suppose that the quotas in review diminish in 50 euros to the month or more than 600 euros to the year. The type is located to today in 4,37 %, a level that was not seen from February of the same year when it closed in 4,35 %, the minimum de2008.
It seems that the continuous reductions of the interest rates on the part of Banco Central Europeo of the above mentioned weeks begin to yield his fruits. True is that the differential is still considerable, since it is of more than one a 1 % with the official types that are located in 3,25 %, and that this margin is the double of the historical average of this differential that is 0,4 %. But it is clear that the tendency has changed and that the margin becomes closer. The taken measurements are beginning having effect and, undoubtedly, they will improve during the next months the financial health of the families.
The expectations are positive since most of analysts hope that the interest rates should finish the year in 2 %. Bearing in mind the differential, this would do that the Euribor was finishing the year below 3 %. The descents will be late in being evident for the effect of the reviews but it is a good moment so that that one that has a mortgage that is late very much in be checking comes to his entity and requests a better dealing. It is very possible that it obtains it!
ICV requests that the sequestration for non-payment of the mortgage limits itself to the mortgaged good
12.11.2008
A proposition has just registered in the Congress not of Law in which it is requested that the sequestration motivated by the non-payment of a mortgage loan limits itself to the proper mortgaged goods and one does not extend to rest of properties and future income of the debtor.
In the document, to which it has had today access Efe, the parliamentary group justifies the proposal in the “public interest”, bearing in mind that the forecasts point out that “40 per cent of the hearths can enter vulnerability situation in the next months” and that the slowness of the mortgaged families, he adds, “it has been trebled in one year, up to 1,306 per cent”.
Before the serious economic situation, it is considered that the only measurement adopted as the Government to help the families to carry the crisis - the moratorium in the payment of 50 per cent of the mortgage for two years - is a simple reduction of the bank commissions, the notaries' fees and registrars at the time of renegotiating the debt. In short that a given very scarce help is the real situation of the families.
“It is not a real rescue plan to the families in serious economic situation and it reveals that banks and real estate agencies responsible largely for the real estate bubble, have more pressure capacity that the victims”, indicates the document.
It accuses the Government of having stayed "passive" at the time of avoiding the sobreendeudamiento of the families, a phenomenon that, according to the group, has been provoked by a legislation that “has protected the credits of the financial institutions and has harmed the mortgaged families”.
ERC-IU-ICV has proposed to change the Mortgage Law so that if in the auction of the good mortgaged by non-payment of the credit it does not go so far as to cover the debt contracted to the financial institution, the sequestration it could not move to the rest of goods, the payroll and the income of the debtor.
The banking institutions get dearer the mortgage loans
06.11.2008
The mortgaged ones we are observing satisfactorily that, in spite of the galloping crisis, they still exist good nonCosta Rican in the sector of the mortgages. And the fact is that the Euribor takes 19 lowered consecutive that they remove it from the historical maxima on that I border not long ago.
It looks like the good news that they are going to continue if the BCE confirms to itself the rumor of the clipping of interest rates on the part of, rumor that can be confirmed today and it might leave the types in 3,25 %
Nevertheless, the happiness goes for quarters and those who are thinking about the hiring of new mortgages do not have it so easy. According to information provided by the Spanish Bank, the banking institutions are not moving the containment of the Euribor to the new mortgages. Which, considering the crisis situation, it seems quite serious to me.
What banks and boxes are doing is to move the clients the biggest cost that the entities suffer to obtain his resources. The interbank market is still dry and the insurances have increased, what increases the cost of the emission on the part of the financial institutions. The incessant war joins that for the debit reception. The banking every time pays more for the deposits. Since they all are subsequent costs, they say the banks, it has to be raised what recovers for the loans if the business margin wants to be supported.
There are luckier those that have to renew his mortgage. This is because they do not have to suffer for the differential that applies his financial institution to them, since this one is not modified - unless they have agreed the opposite - but for the Euribor, which is the variable part of his loan.
This index was in 4,61 % in November, 2007 and in what goes of month it is about 4,8 %, although with tendency to the fall.
This way, who check his credit with reference to the November Euribor will be able to meet that his monthly letter scarcely raises or, in the most favorable hypothesis, which goes down slightly.
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19 consecutive descents of the Euribor
06.11.2008
Although we are in the good caminio, the Euribor, principal index of reference of the mortgage loans, he still keeps on being much raised with regard to the previous year.
The Euribor to 12 months has marked does small day his nineteenth consecutive decrease. His daily valuation has been fixed in 4,764 %, what supposes a descent of 0,75 points since in October his downward gust began. The current provisional November average is placed in 4,806 %.
Approximately one month ago the central banks will apply a simultaneous descent of the interest rates, it might be said that this fact marked the beginning of the continued decreases. nevertheless, it is still too high with regard to the official type of the money in the euroarea, to 3,75 %, and of the levels marked in 2007.
The continuous descents of the Euribor indicate that the reduction of the price of the money is managing to return the confidence, little by little, to the banking institutions. It is necessary to remember that the mortgage reference, in addition to being the reference most used in the calculation of mortgages, is the interest rate to which the financial institutions give themselves money between themselves on the interbank market of the euro.
The gust of consecutive descents of the Euribor might be supported if, as the rumors indicate
, a descent is applied again to the guys in the Euro area. The specialist economic they hope that a reduction of half a point should be applied, what would leave the official price of the money in 3,25 %.
It starts Meeting Point in his most difficult edition
04.11.2008
The sector of the construction and real estate, the Barcelona Meeting Point, that every year was harvesting important successes, both of exhibitors and of visitors, has just opened the 12th edition that will last until November 9.
This is one of the most complicated editions in which the fair has been seen, before the current situation of the real estate sector and buys sale of housings through that the country lives. In spite of it, Enric Lacalle, the president of the lounge, has showed his optimism before the current panorama, showing the most positive face.
In spite of it, the reality is different and the difficult moment of crisis that crosses this sector turns out to be reflected on the first day of lounge, with less inflow than other years. According to declarations of some exhibitors to national means, the complications still will last until middle of the next year and the reduction of prices of the housings is the current keynote.
The proper fair has announced that this Wednesday the minister of housing, Beatriz Corredor, has confirmed his presence at once inaugural of the fair.
In spite of the crisis, the lounge gives an impulse to all those investors who look for new opportunities, especially, in foreign countries. You debate, confer and other activities will help to clarify the keys to go out or to bear the crisis. Also, the Government of Brazil has been invited to the lounge and it is going to present a world innovation: the town-planning plan and of infrastructures that will be carried out in the country for the celebration of the Cup of the World of Soccer in 2014.
Loan changed housing
04.11.2008
Before the Spanish current situation, some boxes and banks throw new and attractive products to give facility to the users.
BBK, one of the pioneering banks in offering long-term mortgages, throws the loans I change housing, stated so that the financing is not a problem added for persons who change residence. Because to change housing implies many things more, they ocupans of the financing. This way, they adapt the financing to his needs, up to 50 years of term.
His characteristics are the maximum percentage 100 % of the value of the appraisal, term of 50 years, amortization system constant Quota, increasing Quota, or even Free Amortization.
For it there must meet a series of conditions, like the personalized initial interest rate and the rest of the period according to the link of the soliciting persons and of the percentage on the appraisal of the housing.
Also, BBK has presented Opari, the new card of gift that allows to the carrying persons, be clients or not of BBK, to realize the buys that they wish in any commerce. It is a card I prepay, across which it is possible to gain access to the amounts that are deposited in the shape of gift, in cash or against a BBK account.
The average amount of the mortgages constituted in August diminishes 10,6 %
04.11.2008
During August the average amount for constituted mortgage is located in 152.672 euros, 10,6 % less than in the same month of 2007 and 2,3 % lower than the registered one in July, 2008.
According to the INE, in case of mortgages constituted on housings, the average amount is 137.657 euros, 9,6 % less than in the same month of 2007 and 2,0 % lower than the registered one in July, 2008.
This way, of this information it is reflected that the Savings banks are the entities that grant major number of mortgage loans during August (53,8 % of the whole), followed by the Banks (35,4 %) and Other financial institutions (10,8 %). As for the given capital, the Savings banks grant 50,3 % of the whole, the Banks 40,6 % and Other financial institutions 9,1 %.Also, in August 44.193 mortgages were cancelled registralmente, with an interannual descent of 32,1 %. The mortgages cancelled on rustic farms lower 25,1 % and cancelled on urban farms 32,3 %. In case of the cancellations of mortgages constituted on housings his number diminishes 35,9 % in interannual valuation.
For communities, to emphasize that the number of farms with mortgage constituted by every 100.000 inhabitants is major in La Rioja (427), Cantabria (337), Canaries (333) and Region of Murcia (305). The only communities that present positive change valuations are La Rioja (2,1 %) and Gallicia (1,6 %). The rest they show negative valuations.
