Majorca Property News

Mallorca Real Estate: Real estate loans, note what you have to respect?

In times where the design conditions for a mortgage loan extremely attractive, growing stream of people start to home ownership. Accordingly profound is the offer of banks and savings banks. Daily flutters in one way or another advertising into the house.
The purchase of a Mallorca property for many but also much more than just the dream of your own four walls. It is also still a form of pension provision. In times in which pensions are reduced still further, but also increasing the rent, the idea of being able to enjoy rent-free to retirement age, very tempting. But that this is possible, several conditions must be fulfilled for the real estate lending.
Especially with regard to age, care should be taken to ensure that the financing of your property in Mallorca is designed so that it is complete with entry into the pension in any case. Otherwise, could the burden of the credit prove to be too high.
The equity plays an important role in deciding on the purchase and financing of a property. If no equity exists, it is sometimes difficult to obtain for the real estate credit, a promise of a credit institution. Typically, the donor expects an equity share of 20 to 30 percent. If these requirements are not met, the newly acquired property is the only security for the Portfolio, Market
The next question, which should provide perhaps the future property owners, is about the amount of the loan and whether you look at the rates that can afford to repay incurred example, in times of sickness or even unemployment. In the calculations for the real estate lending has not only the purchase price actually be involved. Costs for a notary, insurance, taxes and some other things are with them.