Little Real Estate

According to the study The New Urban Housing Needs for 2012, conducted by the Center Infonavit with Private Sector Economic Studies, the country needs to build 650.000 houses and or departments each year to meet demand caused by population growth (new homes, overcrowded housing), or replacement of some housing stock obsolescence and deterioration due to age.

Of these 650.000 housing units, according to the study, Infonavit should not finance more than 300,000 homes annually, not to risk a housing bubble fed by excess inventory and thus contribute to the problem of abandoned housing. In the past six years has given Infonavit an average of 344.529 credits per year to purchase new homes.

Note that this need not reflect new housing demand due to second homes (eg, holidays).

The Financial Plan 2012-2016 Infonavit, together with programs and schemes for house purchases in particular the segment of workers with incomes below 2 minimum wages, a segment that has the highest backlog in housing, includes approximately 300,000 new housing finance per year.

A sample of these initiatives is the program of federal subsidies “This is your house”, which tries to encourage the supply of affordable and accessible housing for lower income workers.

It also seeks to attract to the state governments to participate in grant programs through additional capital contribution of the participating institutions and to improve existing credit terms offered to the segment of low-income workers, and to explore other housing alternatives other than house purchases to combat housing backwardness of this population.

The Banamex Financial Group 500.000 commenting on loans granted by Infonavit in 2011, indicates that despite the achievements in improving the sustainability and the growing demand for non-union members is highly positive, the institute faces negative aspects such as the increasing complexity operations, the increased risk of execution, the largest investment requirements, increasing administrative costs and slower recovery of working capital.

Buying a house or apartment is one of the emotional and financial decisions more important than you will ever make, yet, with a view that only last a few minutes you must decide whether to buy or not. Prepare and learn about the homeownership process and responsibilities of an owner of property.

This guide will help you make an informed decision.

1. If you are used to move each year

If you can not commit to stay in the same place for at least a few years, then owning a house or apartment is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you could end up losing money selling soon after purchased, even in a bull market. When prices are falling, a proposal is even worse.

2. Start to shore up credit

Chances are you need to get a mortgage to buy your house or apartment, then you must make sure your credit history is as clean as possible. A few months before you start looking for a property must be informed of the status of your credit. Make sure the facts are correct and fix any problems you discover.

3. Mortgage pre-approved

Before you even start looking for a house or apartment, solve the question of its mortgage. You can get a mortgage pre-approved, in principle, most lenders without having to make any firm commitment. It’s boring, but has several advantages:

• Remove the question of the mortgage of the road.
• Avoided interference by estate agents who insist that you consult your mortgage consultant.
• You know exactly how much you can afford, so that no this house or apartment of your dreams thinking that is out of your price range.
• When you find the house or apartment of your dreams can bid immediately.

Remember that as a buyer, if you have a preapproved mortgage practitioner you are as valuable as a cash buyer. In a situation with multiple buyers behind the same property, the buyer with cash or pre-approved mortgage would win others to achieve buy the good.

4. Aim for a home you really can afford

Broadly speaking, you could buy a home that costs about two and a half times your annual salary, but it would be better to use an online calculator for this purpose because it will help achieve a better understanding of how their income, debts and expenses affect what you can afford.

5. Down Payment (downpayment)

If you do not have the usual payout of 20 percent may still qualify for a loan. Many public and private lenders offer mortgages that require an initial outlay of up to 3 percent of the purchase price.

6. Make a list of your priorities

Among them: price range, QTY of rooms, roads, public transport, schools, parking, garden size, the atmosphere in the local community, amenities, number of decorations / restoration is prepared to make in your new home, location, location, location. In fact, do a walk through the neighborhood where it is thinking about going to live. Those few minutes well spent can be very enlightening.

7. Looking, looking, visiting

Follow looking until you find a house or apartment that meets all your priorities. Once you find a property that comes close to what you want, go see the property at least three times, on different days and at different times. What looks like a quiet residential street a short cut can be very busy during peak hours. Besides visiting the house in days and different times, make sure you see it in different climatic conditions. Many beautiful places in the sun can be seen as slums in bad weather.

8. Do your research before bidding

Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before you make it, consider sales of similar houses or apartments in the last three months. If homes have recently sold at 5 percent below asking prices, you can make an offer about 8 to 10 percent below what the seller is asking.

9. Hire a home inspector

Sure that your lender will require a home appraisal anyway. But that’s just the way the bank determines whether the property is worth the price you agreed to pay. Separately, you must hire your own home inspector, preferably an engineer with experience in inspection of buildings in the area where you are buying. Your job will be to identify possible problems that may require costly repairs in the future.

10. Other costs

Depending on your situation, you may have some other initial expenses to consider:

• Moving expenses: whether you hire a moving company or rent a truck and ask for help from his friends, is likely to be moving expenses.
• Renovations or repairs: could some updating and / or repairs, be postponed, or are some of them need to be away?
• Condominium fees. Will you make a down payment on these monthly fees?
• Connection charges for telephone, gas, electricity, cable TV, satellite TV, Internet, etc.. These companies may charge connection fees for the service, others may ask you to pay a deposit.
• Appliances Are you coming with your new home appliances? Do you have yours?
• You will need homeowners insurance, etc …

Under current conditions that are local financial markets and the world in which uncertainty prevails, low interest rates, sharp volatility in equity markets and high volatility in major currencies is that some investors are beginning to turn to other ways to investment, not financial, to avoid seeing their assets deteriorated. Some take refuge in precious metals like gold and other real estate, house, building, apartment, cottage or timeshare.

“Investment in real estate should be seen as complementary rather than a way to move to other investment vehicles, is part of the diversification of a portfolio. The percentage of equity for the purchase of real estate depends on the amount of equity. For example, if someone has five million pesos, 50% would be perfect. Whoever decides to invest in real estate should approach a real estate professional, doing it on their own account may mean trouble, because there is to know in detail notarial and legal documentation and who knows the best places to invest, thus avoiding putting in risk their heritage.

Where to start

Determine the amount of money spent on such investment, considering that this is a long-term investment (two to five years) and which is not liquid. “From one and a half million dollars is a fair amount to invest in real estate, except that the options are reduced. Moreover, to generate real property surplus – the difference that is generated when purchased from the sale of real property, must be left to mature the investment of three to five years.

The added value of real property depends on there being a large building project, which the zone is projected to have major roadways or becomes a fashionable area, features a real estate consultant comes in sight.

Risks and Benefits

Have immediate liquidity needs, which is intended to sell above the market value and consider that the time to be going to make the sale can vary between six and twelve months are some risks with investing in real estate.

Whereas, if you make a correct choice of the property the advantage is to obtain profits up 30% over an average period of three years, but depends on the type of property, the place where you are, the time when settle on the property and there have been no adverse circumstances during the time you had the property.

Factors to be considered

In general, when buying property should be considered that the property is registered in the Public Registry of Property, knowing your tax situation, which can escriturarse, who is legally tramitable (having scriptures), which is not intestate, to identify hidden defects of the property and the area is known.

On the other hand, consider that approximately 8% of property value will correspond to legal costs and taxes. Approaching a real estate specialist with extensive experience unfortunately that because anyone can buy or sell real estate, but without any experience or knowledge. A stock broker or insurance license required to practice, not a real estate consultant, putting at risk the assets.

Cities and states attractive to invest

“Currently, the country’s cities offer more stable than capital gains for investment are: Puebla, Villa Hermosa, La Ribeira Nayarit, San Pancho, Sayulita, Nayarit both in Guadalajara and the Bajio. In the suburbs in the City are: Metepec Calimaya adjacent to Metepec and Pachuca. In the federal district Lindavista colonies and Rome. Maybe they can still find some areas in Anahuac, as Polanco neighboring colonies have had a major boom. In Naples and Escandon may have very good opportunities to buy something that you settle two years, which ent while and sell it later.

We know that next year the credit is zero growth, according to the Bank of Spain, because banks and keep plugging the tap further funding to businesses, families and individuals. And that if financial markets do not give us another scare.

Doubts about Spain will affect the provision of credit.

The bank has to repay its own debt, deposits are not profitable, the interbank money is very costly and also have receivables.

On the other hand, investors digest the bubble in the brick has been absorbed in its entirety and believe that any more will be recapitalized institution in the coming months.

In short, not giving much room for loans.

At least, in other euro-zone countries the growth of private sector credit in October was a 1.4% annual rate.

The fear that was installed in the markets, begins to pressure Spain to its economic performance meets your expectations. In addition, the debt crisis is a serious threat to credit.

The experts predict that credit will not return to the same channel that in good times, levels of growth of 30%. Until about two years from the tap banking remain between light and shadow.

Is it time to buy property? How much will I return if I buy now and not in 2011? I buy before the rebate or wait for prices to continue falling? These are some of the questions that are being considered potential buyers before the end of the tax deduction for housing, which will take effect next year.

Starting next year, only those who earn less than 24,107.20 euros able to deduct the purchase of the residence, whether the house is second hand as if new, even if the property is still under construction.

Thinking of those buyers who have not yet been decided, Roan has been organized in Madrid a rake property with a bid of 400 flats at greatly reduced prices. Thanks to an expert and completely customized, future owners will answer all your questions about the end of the tax deduction for home purchase. They may also perform simulations of the tax savings involved in the purchase of the home chosen before and after the end of the year.

Roan rake in this weekend may find such interesting offerings as a floor of 52 square meters and two rooms located in Vallecas, by 95,000 euros. Those looking for something more central, in full sun can buy a flat in a room of 40 meters, for 199,000 euros. For 300,000 euros, those who prefer the Retiro district may acquire an apartment of 80 square meters, with 2 bedrooms. Read the rest of this entry →