29
Sep

Advantages of rent with option to buy if you are young | Vivus.es

If you are young and you do not have enough savings to cover the purchase of a home (remember that most banks only finance 80% of their value), perhaps rent with option to buy is the best way to access a house in the property.

Rental contracts with purchase option are regulated by the Urban Rental Law (LAU) and are a formula increasingly used by people who do not have enough money to meet the initial costs of buying a home.

WHAT IS RENT WITH OPTION TO PURCHASE

This method offers you the possibility of living for rent for a number of years and, after the agreed period, sign a sales contract that will allow you to be the absolute owner of that home, with the great advantage that all the money you pay for the rent (or a part of it, according to the agreement) is deducted from the final price of the property .

We explain it to you with an example so you can understand it more easily. Imagine that you sign a rental contract with an option to purchase a home that costs 100,000 euros. In the contract you agree to a rental period of five years and a lease fee of 400 euros per month. One hundred percent of that amount will be deducted from the final price of the home. After five years, the purchase option will be executed.

With these conditions, after five years have passed you have paid a total of 24,000 euros in rent (4,800 euros each year), so you only need to ask for a mortgage of 76,000 euros to make the house yours . For the 24,000 euros that you have already paid, you will not have to pay interest and the costs of setting up the mortgage will be lower.

THE ADVANTAGES OF RENTING WITH OPTION TO PURCHASE

As you can see, rent with option to buy offers a very interesting opportunity to own a home, especially if you are young and have no savings. We summarize all its advantages:

1º. The money that you are paying each month for the rent is money that you will not pay for a mortgage. Being the minor mortgage, so will your interests. Following the previous example, we assure you that the interest corresponding to 24,000 euros would have been very high.

2º. If you do not deliver a guaranteed signal at the beginning of the contract, you are assured, free of charge, that the house will be for you, since the owner can not sell it to another person. If you repent and decide not to buy it, nothing will happen and you will only have paid a rent. As is logical, in case you have paid a signal and decide not to buy, you will lose the money of that signal, unless you reach an agreement with the owner.

3º. You guarantee that the price of the home will not go up (eye, or down), since in the contract the sale price is agreed for when the rental period passes.

4th You can save for mortgage expenses. . That money you save each month can be used to pay the mortgage expenses, which are around 12% of the sale price and almost no bank finances them. These expenses (notary, registry, agency, tax of documented legal acts …) will also be lower because the mortgage you need is less.

As you can see, the advantages are very attractive, especially for young people, who are the group with the greatest difficulty in accessing a home in Spain.

29
Sep

Advantages of rent with option to buy if you are young | Vivus.es

If you are young and you do not have enough savings to cover the purchase of a home (remember that most banks only finance 80% of their value), perhaps rent with option to buy is the best way to access a house in the property.

Rental contracts with purchase option are regulated by the Urban Rental Law (LAU) and are a formula increasingly used by people who do not have enough money to meet the initial costs of buying a home.

WHAT IS RENT WITH OPTION TO PURCHASE

This method offers you the possibility of living for rent for a number of years and, after the agreed period, sign a sales contract that will allow you to be the absolute owner of that home, with the great advantage that all the money you pay for the rent (or a part of it, according to the agreement) is deducted from the final price of the property .

We explain it to you with an example so you can understand it more easily. Imagine that you sign a rental contract with an option to purchase a home that costs 100,000 euros. In the contract you agree to a rental period of five years and a lease fee of 400 euros per month. One hundred percent of that amount will be deducted from the final price of the home. After five years, the purchase option will be executed.

With these conditions, after five years have passed you have paid a total of 24,000 euros in rent (4,800 euros each year), so you only need to ask for a mortgage of 76,000 euros to make the house yours . For the 24,000 euros that you have already paid, you will not have to pay interest and the costs of setting up the mortgage will be lower.

THE ADVANTAGES OF RENTING WITH OPTION TO PURCHASE

As you can see, rent with option to buy offers a very interesting opportunity to own a home, especially if you are young and have no savings. We summarize all its advantages:

1º. The money that you are paying each month for the rent is money that you will not pay for a mortgage. Being the minor mortgage, so will your interests. Following the previous example, we assure you that the interest corresponding to 24,000 euros would have been very high.

2º. If you do not deliver a guaranteed signal at the beginning of the contract, you are assured, free of charge, that the house will be for you, since the owner can not sell it to another person. If you repent and decide not to buy it, nothing will happen and you will only have paid a rent. As is logical, in case you have paid a signal and decide not to buy, you will lose the money of that signal, unless you reach an agreement with the owner.

3º. You guarantee that the price of the home will not go up (eye, or down), since in the contract the sale price is agreed for when the rental period passes.

4th You can save for mortgage expenses. . That money you save each month can be used to pay the mortgage expenses, which are around 12% of the sale price and almost no bank finances them. These expenses (notary, registry, agency, tax of documented legal acts …) will also be lower because the mortgage you need is less.

As you can see, the advantages are very attractive, especially for young people, who are the group with the greatest difficulty in accessing a home in Spain.

20
Sep

How to manage money in 5 lessons

Managing the money correctly is essential to enjoy good health in the family economy . Failing to do so means losing control of finances, ignoring daily money leaks and, in most cases, living beyond your means. This situation is unsustainable in the long term and can only lead to problems.

To avoid this, it is necessary to maintain a strict control of the domestic economy . If you still do not do it, you should start as soon as possible. Although there are endless ways to manage money, then we will share with you those that we believe are most effective.

5 ways to manage money

  1. Organize your savings plan.

In general, Spaniards do not save. And those who achieve it, save little. Most people receive income, spend and, if they have something left over, that is what they save. This way of saving is wrong and does not give good results.

It is more than proven that the best formula to save is what many call the “pre-savings” . In other words, save at the beginning of the month , that is, just enter the payroll. Do you enter 1,500 euros on the 1st of each month? Then order a 20% transfer to a savings account and forget about that money. Consider saving as the most important “expense” of the month.

  1. Control every euro that comes out of your pocket.

If you want to manage your money correctly, you have to control the leaks . We recommend that you use a small physical agenda to record each and every one of your daily expenses , however small and insignificant they may seem. Remember that one coffee per day at the bar , are more than 400 euros a year.

You can also use mobile expense management applications , such as Spendee . These are very useful because they allow you to create several categories, include each expense in the corresponding category and obtain statistics of segmented expenses.

  1. Pay cash whenever you can.

You must avoid financing . If you can not pay a certain product in cash, maybe it’s because you can not really afford it. People tend to bring money from the future (debt) to pay for things of the present. It is much smarter to save in the present to buy in the future. It is also cheaper, since you avoid paying interest, and avoid problems and headaches.

  1. Do not depend economically only on a third party.

Relying on a single salary paid by a third party is usual. However, it is tremendously dangerous. What if one day you decide to dispense with your services? What if the company closes? What if they reduce your salary? You must have several sources of income and go increase the number progressively, as you can.

In other words, it is better to enter 2,000 euros per month from four different sources (500 euros per payer) than from one single source. If you lose one of the four payers, you will only stop paying 500 euros. But if you only have a single payer, the problem is obvious.

  1. Increase your knowledge

If you want to properly manage your assets, you have to learn economics. To achieve this, read books, attend talks, listen to podcasts, interact with people who contribute, read blogs … You have to increase your knowledge if you want to learn to make good decisions. Do not delegate that responsibility to an advisor. Be yourself who makes the big decisions.

If you put these five lessons into practice, you will manage your money in a much more efficient way. Get your batteries started, start as soon as possible and tell us your advances!

19
Sep

How to choose the best payroll account in the market

With the profitability of deposits in the ground, most financial institutions are concentrating their efforts to attract clients for their payroll account. To achieve this, they offer collection gifts, discounts on receipts, zero commissions or cheaper loans. Anything goes in the open commercial war between entities to win customers.

Clearly, this situation benefits the clients themselves, who have a huge range of payroll accounts to choose from. Such a broad offer allows the user to find the payroll account that best suits their needs and which generates the greatest benefits. But how can we choose the best payroll account in the market without fear of making a mistake? We give you some ideas.

What you have to keep in mind to choose the best payroll account

payroll account

1º. Visit the websites of the different banks, but do not just look at their offer of payroll accounts. Take a look at what that bank is like in general, what other financial products it has, what its mortgages are like, what its clients say … The objective is that you form a global idea about each entity so that you can discard those that do not suit your needs. lifestyle or your future pretensions.

2º. Study the degree of digitization of the bank. In the future, all banks will be digital, so it is important that the entity with which you hire the payroll account has a good foundation in the online world. Make sure you also have a good mobile app because almost all the procedures you will end up doing from the phone.

3º. Review the commissions. You can save a lot of money over a year if you do not pay bank fees . As attractive as a payroll account may seem, if it hides maintenance fees, commissions on transfers, and income or commissions on credit cards, it is no longer as attractive. Online banks do not usually charge commissions.

4th Check the ATM network . One of the things you will do most often is to go to the ATM to get money. That is why it is important that you make sure that the chosen bank has a wide network of ATMs from which you can withdraw cash without commissions. If you also have agreements with other entities so you can withdraw money at your ATMs for free, an extra point.

5th Make sure you have good customer service . In these times, it is fundamental that the entity has a multi-channel customer service system: via telephone, by email, through the app, through social networks … The more contact forms it offers, the better for you.

In short, it is not only about finding the payroll account that offers the best numbers, but also the one that best suits your case and the one that provides the most guarantees for the future . An ideal payroll account would be that of a bank with a hundred percent focus on the online world, with no commissions of any kind, with a wide network of own ATMs and with a complete customer service.

19
Sep

How to choose the best payroll account in the market

With the profitability of deposits in the ground, most financial institutions are concentrating their efforts to attract clients for their payroll account. To achieve this, they offer collection gifts, discounts on receipts, zero commissions or cheaper loans. Anything goes in the open commercial war between entities to win customers.

Clearly, this situation benefits the clients themselves, who have a huge range of payroll accounts to choose from. Such a broad offer allows the user to find the payroll account that best suits their needs and which generates the greatest benefits. But how can we choose the best payroll account in the market without fear of making a mistake? We give you some ideas.

What you have to keep in mind to choose the best payroll account

payroll account

1º. Visit the websites of the different banks, but do not just look at their offer of payroll accounts. Take a look at what that bank is like in general, what other financial products it has, what its mortgages are like, what its clients say … The objective is that you form a global idea about each entity so that you can discard those that do not suit your needs. lifestyle or your future pretensions.

2º. Study the degree of digitization of the bank. In the future, all banks will be digital, so it is important that the entity with which you hire the payroll account has a good foundation in the online world. Make sure you also have a good mobile app because almost all the procedures you will end up doing from the phone.

3º. Review the commissions. You can save a lot of money over a year if you do not pay bank fees . As attractive as a payroll account may seem, if it hides maintenance fees, commissions on transfers, and income or commissions on credit cards, it is no longer as attractive. Online banks do not usually charge commissions.

4th Check the ATM network . One of the things you will do most often is to go to the ATM to get money. That is why it is important that you make sure that the chosen bank has a wide network of ATMs from which you can withdraw cash without commissions. If you also have agreements with other entities so you can withdraw money at your ATMs for free, an extra point.

5th Make sure you have good customer service . In these times, it is fundamental that the entity has a multi-channel customer service system: via telephone, by email, through the app, through social networks … The more contact forms it offers, the better for you.

In short, it is not only about finding the payroll account that offers the best numbers, but also the one that best suits your case and the one that provides the most guarantees for the future . An ideal payroll account would be that of a bank with a hundred percent focus on the online world, with no commissions of any kind, with a wide network of own ATMs and with a complete customer service.