Little Real Estate

The measures adopted in the Royal Decree Law 20/2011 regarding the Property Tax (IBI) do not constitute a first step in the direction to face the necessary reform of local financing . The increase in tax rates in the IBI should be part of the package of measures taken to achieve that has emerged as a priority for the government of Mariano Rajoy: achieving fiscal consolidation in all public administrations . Achieving this objective calls for containment measures and reduction of public spending, but also demand inevitably increase tax revenue.

The increase in tax rates on property tax is only a “patch” -we’ll see if effective and efficient, to make municipal public administrations are placed in positions of budgetary stability.

At the local level the Government has resorted to “how easy”, raising the IBI tax rates to increase tax revenues, as has been done at the state level by increasing the income tax, which is increasing the tax burden to income basically working.

The measure may be plausible in general terms to increase revenue in city coffers, but in my view, has some aspects that are not explained clearly or can not be easily justified from the legal viewpoint. Point out some of them.

The elevation of the IBI tax rates does not extend to all real property , only the properties of urban nature, leaving out those classified as rustic and special features. If the objective is to achieve far more revenue for the municipality , does not explain why the measure is limited to urban property, plus it will be hurt those municipalities where most of the properties of their territory to be qualified as rustic.

The different rates of increase of tax rates according to year of approval of the presentation of the values ​​determined fixing the assessed value of real estate is reasonable from an economic perspective, but I fear that discourages public authorities in especially the municipalities, to adopt the necessary measures to update cadastral values ​​. Again, the commitment to regularly update cadastral values ​​to suit the market value will be defaulted.

Excluding the increase in tax rates for municipalities whose papers were approved securities in the height of the so called real estate boom (2005 to 2007) or currently (2012) is reasonable from the perspective of tax equality , because assessed values of these properties are higher than the rest , which results in these buildings which are already experiencing a higher tax burden on the IBI.

Less justification is, however, the exclusion of buildings belonging to residential use less than half assessed value of all property of the municipality with the residential use application that will be a presentation of all values ​​passed in 2002 or a subsequent year. This can produce a phenomenon similar to so-called “jump bug” that seems unacceptable from the perspective of the principles of economic and tax equity. It is possible for a property with an assessed value higher than a euro a mean value of the municipality to apply a tax rate increase and other property with a rateable value one euro less than the mean value is not applied to the increased rate, resulting as a result a difference between difficult to justify quotas .

It has been said that with the exclusion of residential buildings belonging to the half with lower rateable value of all property of the municipality is to benefit the most disadvantaged citizens , which is saying something that means assuming that the holders with claims on the properties with a rateable value less than the average value in a municipality are the least favored in absolute terms. But even admitting the veracity of the previous assertion in the majority of cases, does not explain why not excluded also from the increased tax rates for residential use properties whose rateable value is below average assessed value of the residential buildings in the municipality where your rateable value is fixed by applying general papers approved before 2002, especially since the increased tax rate established for these cases is the highest, 10%. Are we to assume that the owners of these properties are also the poorest of the municipality? What makes them different? Does it make you different than the Borough Council where he has been promoted properties not updating the tables of property values ​​in your municipality? Should citizens bear the negative consequences of lack of diligence of its mayors?

I also find it reprehensible that the basis on which we must apply the increase in tax rates established in Royal Decree-Law is not the same in all municipalities . Indeed, if the City Council approved for 2012 a reduction in the tax rate, increased tax rate will apply on the current tax rate in 2011, ie , ignoring the exercise of regulatory authority that has made City Hall. However, when the City Council had approved in 2012 an increase in the applicable tax rate, the rate increase by 10%, 6% or 4% will apply to the tax rate approved by the City for the year 2012, that is, maintain and respect the exercise of regulatory authority made ​​by the City.

It certainly seems logical that, to avoid the intended effect of increasing property tax revenues can be seen fully or partially offset by the measures adopted by the City, but from the perspective of the autonomy of municipalities to manage their interests and power tax that are recognized in Article 133.2 of the Constitution is not very defensible this different treatment . Remember that the state measure to increase the IBI tax rates adopted in a rule dated December 30, 2011 and had not been previously announced, so there was no time material to the municipalities could adopt measures deemed appropriate around IBI taking into account the intentions of the State Government .

The savings is usually placed in the bank at interest in order to reserve for future eventualities, one of which may be investment in real or personal property. By definition, real estate are those that have a fixed position in space and can not travel.

The first investment that is commonly made when buying a house own room, looking to stop paying rent, live in it and become a heritage that can be inherited, sold or transferred.

Whether an apartment or a house, the most common strategy of those seeking to invest is to use the savings for a down payment on a property with features that make it attractive to tenants and the rent payment to pay off possible acquisition.

However, it is also possible that the savings to acquire commercial premises, land for construction, an entire building for offices and even industrial buildings, which are a good deal, because the returns they offer. However, the economic benefit derived will be affected by factors such as the locality where they are, (in the city, forest, beach) its geographical location and accessibility (colony, main avenues and side streets, urban, rural , tourism) or square meters that count.

For example, it is the same as investing in a two-bedroom apartment in a residential neighborhood a four-bedroom house on the outskirts of the city, because although the latter has more space, its urban location may be cheaper to acquire, but much less profitable, so instead of making our savings are preserved would be a loss.

In fact, it is estimated that a building is over 120 square meters and located in an area with low population density, output is more difficult than one which is located in downtown area and smaller. It is therefore appropriate to make clear that it is a long term business, which is difficult to get out more if you have a complicated economic situation. Read the rest of this entry →

Mortgage Loan is the generic time period for a loan secured by a mortgage on real property, the “mortgage” refers back to the legal certainty, but the phrases are sometimes used interchangeably to refer to the mortgage loan. Mortgage loans usually refer to a loan secured by residential property, usually with the purpose of acquiring the residence. The mortgage loans may also lower priced than other forms of borrowing because the value of the property reduces risk for the lender. There are numerous advantages of the Mortgage Loans.

The first advantage of the mortgage loans is that there are many types of mortgage loans and can be found and used around the world. The flexible interest rates also provides the advantages of mortgage loans. Here, interest rates may be fixed for the life of the loan or can be changed at certain predefined periods. The amount paid for each period and frequency of payments, in some cases, the amount paid per period may change or the borrower may have the option to increase or decrease the amount paid.

Another benefit of the mortgage loans is that there are a number of ways in which you pay a mortgage. Payments may be based on locality, tax and legal guidelines prevailing culture. The typical technique to pay off a mortgage is to make regular payments of the capital, also referred to as primary and curiosity in a given time frame. Commonly referred to as (self) amortization in the U.S. and as a repayment mortgage in the UK. A mortgage is a form of annuity and the calculation of daily funding is based on the time value of money formula. insurance data may also be particular places totally different interest can also be calculated on the premise of a year of 360 days. Read the rest of this entry →

Businesses in the housing market is one of the most sought after market because these give good returns. But there are people who are afraid to believe that there is no room in them and the reality is still there or if we look at the auction of real property.

The auction of real estate is a website where we can find several real estate. They can be single region or different cities within a country and even international cities.

Build a slice of real estate may seem a bit simple, the reality is that it can be if we have a real estate agent, but if you do not need a job more complex.

If we only need to build a real estate web site and thus invite others to join real estate to the auction of real estate in order to broad content properties for people who are interested in purchasing. Read the rest of this entry →