Banks and building societies offer mortgages as well as paying the rent. The purchase price has fallen from 20% to 40%. Is there a benefit?Those interested in having a place to live may consider two options: rent or request a mortgage. Why would one option is better and in what cases other? Good decisions depend on each case, but we must have clear information. There is key information you need to check: you have to look at the variation, the rate of unemployment and issues to be considered for in 20 or 30 years, how the process of obtaining a mortgage or which takes into account banks before granting credit.


Banks and savings banks, the largest estate in the country

Many developers have had to close his business and give homes to the banks. Many people have not been able to pay your mortgage. Financial institutions have been left with the house of those who could not pay, individuals and businesses. So, right now, are these entities that have a greater number of dwellings.

The stock Real estate has economic value (the value of property), but it is money that can be provided: entities have much money in equity, on floors, but do not want to give credits if they are unsure that they will get that credit. SMEs and, then, with them, a vital part of the Spanish economy, are hit hardest.

Why mortgage the same price as a rental?

Let’s take an example: let’s say that mortgages were granted value 100 (we invented this issue), who gave 100 for the purchase of an apartment to a family. With this money a family believed he had been able to buy. Of the 100 family Total 10 and have been repossessed housing are unable to repay. The entity that lent the money have a home plus the 10 that have returned.But the house or apartment now it costs 100, worth 60, because the price of housing in Spain has dropped. The entity that loaned the money has lost 30. And this has happened to thousands of properties.

Banks and thrifts are those who lend money and now are also those who have homes. Offer, then a good mortgage if you buy one of their properties. Banks offer better for your floors, As denounced by the OCU, And what echoes TVE on October 6.Following the example, banks are trying to give mortgages to the value of 80. If within a time cost housing 90 banks and savings banks have made a bad bargain, would have given good mortgages to buy homes that have more value.

Otherwise, if within a 40-time cost housing would have made a good deal. they would have sold stock property at a higher price, banks would have fewer properties, more money for investing and lending a profit of 30.

Therefore it is important to take into account the estimates of the evolution of housing prices before deciding whether to rent or buy. The economist and professor at the University of Barcelona Gonzalo Bernard, who directs the Master of Property Consultancy UB is one of the foremost experts in the Spanish property sector. “In the middle-class neighborhoods of large cities, new housing prices will fall more difficult. He already has between 25% and 40%. On the contrary, in large cities, housing used to go much lower. There are owners who do not believe that time passes and we continue to live in 2007

What if the price of the apartments down significantly in a short time?

Put another example, a family buys a house now, to be his residence, which is 60, offered by a bank. If the floors were cheaper in the future this could be a bad mortgage business. In what cases?

It would be a bad business if the family had to sell the home. If prices had dropped significantly in the near future would be worth your home, for example, 40. In good condition would be paying a house or flat, but if the stories were much cheaper in the near future and would like to sell it would offer 40. Failure to pay the mortgage or want to change apartments have lost 20.

It is true that the new family home that it would also buy less. But keep in mind that the house was bought by 60. The 20 who have lost is money still owed to the bank. So, have sold their house for 40, have acquired another in worse conditions and still need 20 to the bank.The law allows financial institutions continue to charge even if they are left with the property. This is what is called payment in kind.

What should I consider?

Jesus Encinar, a founder of the portal , Which publishes a highly regarded newsletter, warns that “if you find the house you like, you can afford it and you will live for years in it, buy it.” Still can not think to ask for 100% of the value of the house to the bank, or intends to sell in two years, or mortgaged for more than 30% of revenue, he adds.

The value of property falls in recent years. Will the cheaper floors?

The evolution of housing prices decisively influenced the purchase. It is therefore essential to consult it.