Flats For Rent London

If you have made the decision after reading “First time Buyer’s Dilemma: Rent or Buy – Part 1″ that you may be in the market for wanting to buy a home, the next factor to consider is your own financial situation.Ideally, this should be investigated and a plan should be devised before you start looking at homes. This is because it can be exciting to view a home and imagine it as your own but without the finances in place, it could spell heartache. You could miss the opportunity to buy the house as it may take too long to secure financing and the seller will get impatient. Even your realtor cannot always prolong the early stages of the sale for long enough. Also, if you are in a rush there is more chance that you will not choose your terms so wisely. One factor that is a deterrent with financing is bad debt. If you suspect you have a bad credit rating from unpaid or late-paid bills, you will need to take care of this first. Save up and pay off your bills, get a copy of your ‘clear’ credit rating and take it to your local bank.Ask the bank to give you a ’secured’ credit card. This means you deposit say $500 in an account and you cannot spend it; it is security for receiving their credit card. After approximately one year of using the card and paying it regularly each month, your credit risk will be considered viable (and you can probably spend your $500!). Assuming you have an average credit rating and steady employment, you can pursue financing by becoming ‘pre-approved’. These are the magic words to a seller when you are viewing a house, as it means that you already have financing in place. An experienced real estate agent can tell you what you need to know a bout how much monthly repayment is suitable and affordable to you. You also need to know how much this type of repayment will represent in terms of the dollar amount of the loan you can get. The down payment is another important factor, as the more that you deposit on a home, the lower the amount that you are borrowing which means that the less interest you pay back on the loan and the lower the repayment you have to find every month.The monthly costs of your mortgage repayment and your annual house taxes will be added to your usual monthly living expenses of food, power bills, vehicle expenses etc and these combined calculations will determine the affordable price of the property that you will be looking for.Financial institutions usually require a minimum of five per cent down but it can be higher. Another factor that will affect your repayments is the type of mortgage you choose. Often the mortgage with the lower interest rate is more tempting, but this could be a variable rate mortgage, which means it usually fluctuates up and down with the prime rate.This type of deal has caught many people short recently, and demonstrates the advantage of securing a ‘fixed rate’ mortgage. Sometimes a fixed rate mortgage is also called a flat rate mortgage or a locked-in mortgage; this is the safest type of mortgage to secure when you are budgeting your income. Basically, all these terms mean that the interest rate will stay exactly the same for the number of years for which your mortgage is fixed (usually three or five years). This three or five years is called the term and is nothing to do with the amortization rate (usually between 20 and 40 years). So if you borrow mortgage money over a 25 year amortization period and sign up for a three year term with a fixed rate (or locked in rate) this will mean that your monthly repayment will remain the same for three years.No nasty surprises there!The fixed rate mortgage will mean that you can budget to afford the fixed amount of the monthly mortgage expenses, which is good, but you will still need savings for the legal fees, the moving fees and any repairs that are urgent. (Sometimes the only way to afford the first realty investment is by buying a home that needs some tender loving care.) A local real estate agent can direct you to professional experts in the local area. He/she has dealt with notaries, mortgage brokers, lawyers and surveyors in your chosen area and will know who is thorough and speedy etc. Sometimes it is worth asking for a quote to compare prices. For instance, you can ask lawyers and notaries the total conveyance fee for buying a home to the value of ‘X’ amount of dollars (fees are calculated according to the house price).Sometimes there are grants offered by the Government to offer specific incentives for new home owners. For instance certain energy-saving ‘green’ practices will often qualify for a Government refund: i.e. grants are offered in some areas to home-owners who buy a new energy wood stove or an Energy Star appliance.Most mortgage companies will accept a lump sum payment once a year. This means that you can save up and lower your loan amount once a year (usually on the anniversary of the start date of the mortgage). This will mean that you will be paying back less interest and shortening the number of years that it will take to pay off your mortgage loan.It also means that you are accruing more equity in your own home, ready for when you may want to sell up and buy a slightly larger property. With a hot tub!

Everyone wants to own their own home. Although it is a big expense, we focus on the fact that when the mortgage is finally paid off we will be the proud owners of a property that will hopefully be worth far more than what we bought it for many years previously.

But is buying your home really all it’s cracked up to be? Many people think that renting a property is a waste of money, because you aren’t investing in ownership of the property itself, but there are advantages of renting which should be considered before you make the decision to buy.

Renting can be a good option if you plan to travel in the near future. Many young people rent a flat because it gives them the freedom to be able to move easily at short notice. If you own a house and you go travelling, you have to decide how you will continue to pay the mortgage while you are gone. The best option is to rent it out to someone else, but there is always the risk that the person you choose won’t have the same respect for your property as you do.

The question of affordability also needs to be considered. Mortgages vary widely in what they will cost you each month, and depending on the area you are looking at, your needs and your income, you will need to compare your estimated monthly payments for both a mortgage and the rental of a property, to see which option is the most affordable for you at present.

Some people simply like the flexibility that renting offers. Their work may take them to many different places for weeks at a time, in which case being able to move from place to place makes them feel more at home than staying in hotels would. If their work is freelance in nature and they work from home, renting gives them the chance to move to a completely new area to see what it’s like, before making the bigger decision to buy a home there.

If you are considering whether buying or renting is the better choice for you, think about your current circumstances and whether or not they are likely to change in the near future. Are you at a stage in your life where you want to settle down and have a home where you can do whatever you want?

In short, there are many factors which could affect your decision. Buying a home is one of the biggest financial decisions you will ever make, so it’s advisable to spend some time thinking about what you want before you make the leap.

Of all the various markets that have been hit by the recession, few have been as totally and utterly decimated as the property and mortgage markets. Of course, with the benefit of hindsight and intense scrutiny by everyone from politicians to journalists to local shopkeepers as to the reasons for the economic collapse, it is far from a new theory to suggest that it was the unrealistic borrowing and lending in relation to, particularly, the property and mortgage markets that led to the recession. Broadly speaking, that can be taken as simple fact. However, whilst many are still debating the nuances of the economic collapse we experienced the rest of us have simply picked ourselves up and tried to cope with it as best we can. The good news is that, according to many in the property and mortgage industries, the first signs are recovery are now in sight. Although the recession is far from over – and the effects of it will certainly be felt for many years to come – there are some particular indications and trends in the housing market that show promising things, and some argue that one of these indications is the increase in renting. Whilst certain studies that have been recently published show that there is still plenty of interest in buying houses – viewing figures, for example, are increasing at a steady pace – it is no longer the buyer’s market it once was. This is generally because there is still a vast deficiency in mortgage credit, which in turn means far less sales. As a result of this many more properties are being put on the market for rent. London, which is often a reliable indicator of what is happening in other cities around the country, has seen an increase of one hundred and twenty eight percent (128%) in owners who are renting out their homes. For those unable to sell, letting out a house at least provides an income whilst the housing market takes its time to get back on its feet. One of the consequences of this increase in property available to rent means that rents have gone down almost across the board. The implications of this can be seen on a top property website, which has shown that the average amount in weekly rents in London can be seen to have steadily decreased over thirteen months, with each month showing a lower average than before. Whilst this is great news for renters wanting to negotiate a lower price with landlords, some economists say that this increase in rental property does not necessary mean that such activity levels will help to stabilise the house prices in the coming months. Unfortunately, a mixture of high unemployment levels and reluctance on behalf of buyers to purchase property seem to back up this notion. Other economists, however, are more positive and insist there are signs to show improvement. There have been, for example, steady rises in the number of house purchase loans approved since the end of winter, and, equally importantly, a number of banks are beginning to boost the mortgage market with new ranges of mortgages. The increase in renting, on the other hand, means little to most in the property market except for the fact that the journey back to the heights enjoyed just over a ago by the property and mortgage markets is going to be a very slow and arduous one. This article is free to republish provided the authors resource box below remains intact.

When buying a business in Spain, the property holding this business will either be freehold or leasehold. This is called tenure. There are advantages and disadvantages to both. Get financial and legal advice on tenure issues. In certain cities (such as Madrid and Barcelona), you will rarely find freehold business premises. And in locations such as the Costa del Sol you will find quite a few freehold premises.

Freehold businesses

As a business broker providing invaluable consulting services to his clients, Gregor Schellhammer (manager of Crystal Consulting Spain SL) advises that buying freehold means you acquire ownership of the land and building forever, and are able to do with it as you wish (subject to the law obviously). As specialists in bars, restaurants, nightclubs and hotels, we at Crystal Consulting Spain SL get many enquiries from people who wish to buy a business, yet who are unfamiliar with the advantages and disadvantages of the two types of tenure. Many buyers resolutely set their sights on purchasing a freehold, yet because of their limited capital (and restricted market conditions) are unable to find anything they are capable of buying.

Let’s say you buy a freehold bar and after some time decide you no longer fancy working in the bar, you can then:

Advantages:

Property normally appreciates in value over time and so would show on your balance sheet as an increasing fixed asset. When you sell, you may make a considerable capital gain.

Disadvantage:

Freehold property is usually more expensive than leasehold to buy. If you have ample funds to buy a freehold business, you would be better off investing all those funds into a better leasehold business than to tie a substantial part of your capital in the freehold of the property.

Leasehold businesses

In Spain a leasehold is called a “traspaso“. The leasehold sum is the amount of money paid to the exisiting tenant (business owner), to take over the business. The new owner will then take on the right to re-sell the business whenever he or she desires. In a leasehold operation, the owner of the premises is entitled to a percentage of the traspaso (leasehold paid), this can be from 10% to as high as 25% – different on a case by case basis. Understandably, given that you are not buying property a leasehold business is much cheaper than freehold and more accessible to most investors.

Advantages:

Leasehold property is usually much cheaper to buy. 2 months deposit and a traspaso payment can get you a business (some owners require an aval – bank guarantee). For the price of one freehold you could buy several leasehold businesses. Including a purchasing option in the rent agreement could allow you to secure owning the property in the future.

Disadvantage:

You can only change the use of the building or make alterations, perhaps even decorate, with the prior approval of the leaseholder so operating in a leasehold property can be far more restrictive. Leasehold property is actually written off in the balance sheet over the life of the lease and so shows on the balance sheet as a ‘depreciating asset’. You do not own the “bricks and mortar”.

Generally speaking, both freehold and leasehold premises are viable options and will depend on both the personal situation of a business investor and the market they are looking at.

Before doing business in Spain, you might want to ask a question or two on the forum for doing business in Spain, where Greg regularly responds to business related questions about Spain.

The National Association of Realtors recently issued a report showing that when the sales of homes slow down, the amount of rentals increase. Rented homes, whether in a house or an apartment, are what keep the housing market afloat during uncertain times. Unfortunately, renting is not necessarily better in the long run for consumers.

Why People Are Renting More Than Ever

According to the National Low Income Housing Coalition’s annual report, “Out of Reach,” one in seven U.S. households spend over half of income on housing, with low-income earners, minorities and first-time homebuyers taking most of the burden. With first-time buyers taking up about 40 percent of the market, everyone else who is a potential homebuyer has the ability to move into larger or more expensive homes.

Although housing prices have plummeted in recent months, the first quarter of 2008 is the 24th consecutive quarter that rentals have risen across the country. Such a huge increase in rentals suggests that more people are opting to stay away from the housing market. Part of the reason so many people flock to rented units is because of stricter lending terms.

Another possibility concerns how “soft” the housing market is right now. Either way, renting seems to be the more popular option at the moment.

Why Buying May Be Better Than Renting

Contrary to the increase in renters, the Mortgage Bankers Association stated in a report that the number of purchase loan applications increased 5.4 percent from the previous week. On top of this, mortgage interest rates rose slightly, indicating that homebuyers are gearing up for the spring season instead of shying away from the lowered prices.

The housing market has suffered recently to be sure, but market fluctuations will lead to a slow but steady increase in buying. In other words, whatever goes down must come back up. As real estate agents prepare for the spring homebuyer season, there is a very likely chance houses will start to sell, especially those in foreclosure or generally pricier neighborhoods. With historically low interest rates and the FHA helping borrowers with paying off their subprime loans, the number of renters may actually go down in the next year.

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When considering renting versus buying a home, forget the biased advice of those who think it is always better to buy. Instead, consider the important questions you need to ask. Here are four of them.

1. How long will you be there?

Generally, if you will be moving in the next few years, you’ll be better off renting. Of course this wasn’t true during the last real estate bubble, when home values in some areas were going up 20% or more annually. But then some of those who timed it wrong and bought in the summer of 2006 saw a 20% decline in value in the following years. How would you like to be facing a move when you owe more on your home than it is worth? Unless you want to gamble, consider buying only when you’ll be in the home for a while.

2. What will the cost of owning the home be?

Add up all the various costs. Include the mortgage payment, taxes, insurance, utilities (guess if you have to), any immediate updates or improvements you’ll be making, and a reasonable amount for maintenance. Figure the total average monthly cost of owning the home. Once you have that, you need to answer the next question.

3. What is the cost of renting a home?

Include rent plus renters insurance (if you’ll buy it) plus utilities (guess). Now you have a basis for comparison. If it’s dramatically more expensive to buy, it may be better to rent for now and bank the difference. For example, a few years ago we lived in a city where a home that was worth $160,000 could be rented for $750 per month. Utility costs would be the same in either case, and the total cost of owning worked out to about $1,250. Had someone bought the home then, they would be in a home today that is worth about the same $160,000 (that was the top of the market). Had they rented and banked the $500 per month difference, they would have almost $20,000 saved today, meaning they would be that much further ahead if they bought that home (or a different one) now.

There are a few more things to note here. Some of that mortgage payment is principle, not interest. In other words some equity would have been built up even without a rise in value – but not much. Of course if the home were sold now, there would be expenses associated with that sale, eliminating any equity gained. On the other hand, rents can rise, while a fixed rate mortgage payment will remain the same. All of this gets back to the first question about how long you’ll be living there. The longer the time, the more likely it is that buying makes more sense, at least financially. But don’t skip the next question.

4. Do you want the responsibility?

As you can see from the example above, renting versus buying a home can be the smart move at times. But even when buying puts you further ahead financially, that is not always the final determinant. I like owning a home, and in large part because of the financial advantages. But my wife and I also plan to stay here a long time. If not, we might be renting, because I don’t actually like taking care of a house.

It is something to consider, especially in those situations when buying may have such a clear asset-building edge over renting. A landlord takes care of the roof, the heating system, the painting, carpeting, and even the yard work in many cases. With your own home, all of that is in your responsibility, along with buying and repairing large appliances, resurfacing the driveway and spraying for bugs. Do you want the work of being a home owner?

Eventually most people probably should buy a home. The cost of owning a home usually won’t go up as fast as rents, at least if you have a fixed-rate mortgage. Nobody can tell you to leave. A house is a great way to build assets too. After all, even when renting versus buying a home costs less each month, how many renters really do bank the difference? But as you can see from the questions above, there are times and situations when renting makes sense.