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Published on Leave a comment on Will Cyprus follow Spain’s example?

Greek real estate agents think Greece should emulate Spain 

Spanish government has announced plans to temporarily reduce the rate of VAT on newly built housing. It is an attempt to encourage sales and boost property market.

The announcement came at a recent press conference where the Spanish Finance Minister, Elena Salgado, announced that rate of VAT on newly built housing will be reduced from 8 to 4 per cent until the end of the year.

Cyprus is in a similar position to that of Spain with thousands of newly built properties remaining unsold and littering the once popular seaside areas. Prices too have fallen and unemployment in the industry has risen sharply since the market peaked in 2007.

news.cyprus-property-buyers.com

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Published on 1 Comment on Can Housing Policy be an Effective Stimulus?

Changing housing policy benefits economy at a local level

The housing market predicts local economic conditions. There is a correlation between the percentage of underwater mortgages in a state (i.e., mortgages on which the homeowner owes more than his property is worth) and the unemployment rate.

“There’s no environmental review to conduct or long-delay in actually getting this into motion; underwater consumers who want to knock a few hundred dollars off their mortgages are well-incentivized to initiate, carry out and make sure this gets completed themselves. It outsources much of the bureaucratic requirements to those consumers who stand to benefit” - Mike Konczal.

washingtonpost.com

Published on Leave a comment on Exploring Mortgages

A 15 or 30-year mortgage loan is a tough decision 

23 August Mortgage - Exploring Mortgages
Mortgage Advice

When financing a house, it is essential to analyze what sort of mortgage adjusts to your necessities.

"Fifteen-year mortgage rates certainly look enticing these days, and the idea of owning a home, debt-free, in less time than it takes to raise a child, sounds grand. So what’s the catch?" asks Vickie Elmer in The New York Times.

Before choosing a 15 or 30-year loan, calculate how much money there will be left aside your monthly mortgage fee. Is it enough for you to live on?

Let's have a look at the example from The New York Times:

"On a $300,000 loan, for example, you would pay about $1,475 a month for principal and interest over 30 years, versus $2,145 over 15 years. That assumes a 4.25 percent rate on the longer loan and 3.5 percent on the shorter one.

You would save about $145,000 in interest payments over the life of a 15-year mortgage and build up equity in the home faster [...]. In the first year, principal would be reduced by $15,000, versus about $5,000 on a 30-year loan".

The more you can reduce years in a mortgage the better. But, nonetheless, if you are worried about job security you should opt for a 30-year mortgage. Keep in mind that spreading out the loan length increases the final price of a house.

 

Published on Leave a comment on Hyper-Connected World

SpainHouses.net News has been created to inform on Real Estate in a hyper-connected world

18 de Agosto 2011 - Hyper-Connected World
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Today, Thomas L. Friedman writes about our world and its truculent riots, rebellions and manifestations in The New York Times.

Citizens all over the world are protesting. "From Athens to Barcelona, European town squares are being taken over by young people railing against unemployment and injustice of yawning income gaps", says the author.

What's going on? - he wonders.

Answer: 'We are fighting for an accessible future' - states an Israel's middle-class uprising slogan.

Technology revolution has led us to a new age in which people do have the actual possibility to raise their voices. "Thanks to cloud computing, robotics, 3G wireless connectivity, Skype, Facebook, Google, LinkedIn, Twitter, the iPad, and cheap Internet-enabled smartphones, the world has gone from connected to hyper-connected".

Uncertainty leads citizens choices in life. We have evolved from a world where we all thought life was safe and easy to mere insecurity. Housing is one the of the biggest problems of all.

SpainHouses.net News has been created with one purpose only. To inform.

Let us take you for ride across world economics, housing suggestions and political sensibilities related to Real Estate.

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