2023-06-20 14:04:42
The most common thing when buying a home is to go to a financial institution and request the usual financing through the contracting a mortgage. At present it is the most normal, but it is not the only option available to obtain the necessary resources with which to close a real estate deal. Generally, 80% of the approved value of the home that the client wants to acquire is granted, so the remaining 20% must be paid for with savings.
Besides, an additional 10% must be available for the payment of the Property Transfer Tax (ITP) or VAT depending on whether the home is new or second-hand, plus notary and registration fees. This is where problems arise, since many clients do not have these savings to cover initial expenses not financed by the bank, so they must resort to other modalities or alternatives to buy a home.
Alternatives to bank home mortgages
Even if the client has and demonstrates his full capacity to acquire and pay the mortgage payments, You probably don’t have 30% of the home’s value that is (generally) required to cover all expenses that the bank does not finance at the time of approve a home mortgage and that are generated because of the purchase of the property.
Housing leasing consists of renting the house before buying it
It is here where novel concepts arise to solve this problem and collaborate to the extent possible by offering alternative financing methods to conventional mortgage loans. Many of them with extensive advantages for both parties (buyer and seller) and creating the necessary conditions to solve a problem that diminishes the growth options of this sector.
Housing or real estate leasing for housing
A method of real estate financing that consists of a rental contract for said home framed in a fixed-term contract and that generally extends from 5 years to 25 years in duration. Here a commitment to purchase the property by the tenant is included and that is generally carried out at the time of ending the rental period of the home.
The financial entity will keep ownership of the property and it will be leased to the tenant and interested in the home, who At the end of the lease you can pay the last installment and keep the property or otherwise give up the purchase. This modality has advantages, because in itself it does not constitute a mortgage as such, saving taxes and avoiding charges on property records to get a guarantee of payment.
Housing leasing is classified as an alternative for access to housing, aimed at those who do not have the full possibility of offering an amount of money to settle the entry, but with the refusal of being difficult for banks to approve. In addition, although it saves you the need to have initial savings, the interest rate is higher and it is often easier to request a bank loan to generate the money of the initial of the house.
Crowdfunding is skewed towards small investors
Real estate or housing crowdfunding
Crowdfunding is another alternative available to access the possibility of buying a home, this modality is inclined to the profile of the investor and is capable of allowing access to a source of collective financing. This concept achieves thanks to small contributions (several investors), carry out a real estate investment that generates profitabilitythat is, little capital and small outlays (although many investors) to create a collective participation.
Here interest is usually higher than in a traditional mortgage, because it is a mechanism that is intended for small investors who want to diversify and invest in the real estate sector. And although the experts are categorical in announcing that it is not a mechanism that actually works for the acquisition of a habitual residence, It is aimed at the purchase of homes and therefore to give a boost to the real estate market with profit generation.
Growth of the Spanish real estate market
Both forms of financing for homes are starting in Spain, but considering the difficulties of the possibility of saving for the vast majority of potential clients, it is possible that these new sources of financing and access to housing have a promising future. Being decisive for its success, the acceptance by the public and the flexibility of financial institutions to compete with traditional mortgages.
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