Financing commercial walls with professional loans

The purchase of commercial walls has many advantages, however, it is important to choose the right investment.

Commercial Walls

Commercial Walls

Financing commercial walls with business credit can be an interesting operation for companies that want to invest. Indeed, companies can acquire commercial walls to enlarge their real estate stock but they can also become owners of the walls of the business they operate. The rent they paid may, under certain conditions, be the same amount as the monthly payments of credit and thus allow the entrepreneur to build a heritage without too much extra weight in its budget.

How to choose your commercial walls?

Different criteria must be taken into account:

  • The location of the commercial premises
  • The type of business
  • The layout of the premises
  • His price

The price of commercial walls is not calculated in the same way as for conventional real estate. The surface of the property is not taken into account but the estimated yield of the premises according to the rent perceived. Commercial walls are therefore not subject to the same fluctuations as real estate.

It is important to distinguish between buying occupied and free walls. For the occupied walls there is the presence of a real estate lease. When the walls are free, it is a tenant default.

The benefits of buying commercial walls

The benefits of buying commercial walls

Becoming a commercial property owner also means getting rid of certain charges from a classic property owner. Indeed, the property tax is often reimbursed by the tenant and the co-ownership works (with the exception of the main works) borne by the tenant. In addition, all work in the commercial space must be financed by the tenant since it is he who operates the business.

It is important to ensure before the purchase of the commercial walls that the co-ownership by-law authorizes the activity exploited by the business and to study well the commercial lease.

Without obligation, submit your request for information to obtain a professional credit

 

Online shopping with prepaid credit card

The world has become increasingly within reach in recent years. Many people no longer go to the local city center for their purchases, but shop online via the internet.

According to Good Finance, no less than 92% of 25 to 49-year-olds made purchases via the internet in 2015. It is also very easy. You are no longer dependent on opening times, but you can purchase products seven days a week, 24 hours a day. And not only from Dutch companies, but also companies from all over the world.

Online shopping is becoming easier and faster, especially if you have a credit card, for example. Courier services are also becoming faster, so some purchases are even delivered the same day. Making purchases via the internet has also become increasingly safe. Yet it is important to pay attention when buying something via the internet, because not every online company is equally reliable.

What should you pay attention to?

What should you pay attention to?

If you purchase a product from a certain website, it is important to check whether the website has a quality mark. In the Netherlands, we have the Thunder Warloan quality mark, which is a quality mark to protect consumers. Here you will find a list of other Dutch labels.

Unfortunately, it is not the case that a quality mark always means that the web store is reliable. It, therefore, doesn’t hurt to Google on the website in question and look for customer reviews.

How can you pay securely online?

How can you pay securely online?

You can pay online in many ways. Via iDEAL (internet banking), with a credit card or a prepaid credit card, or a direct debit. On the website of the Consumers’ Association, you can read which other ways there are. Please note the following:

– Check if you pay in a secure environment. You can see this by the key or a closed padlock in the browser. The web address starts with an ‘https’, where the ‘s’ stands for ‘secure’, which means ‘safe’.
– Read the conditions of the website carefully.
– See if you can retrieve the address details of the website and check if it is an existing address. This is especially a good move if you make purchases on websites from abroad.
– Check your bank account afterwards.

Credit card: a weapon against fake web stores

Credit card: a weapon against fake web stores

Unfortunately, there are also many fake web stores on the internet. These are often indistinguishable from real. Even the quality marks often appear on it. The fake web store can also simply request iDEAL. In case of doubt, you can ask the company to pay half the amount in advance and the other half afterward.

Online shopping with prepaid credit card

You can also choose to use PayPal or your (prepaid) credit card. Credit cards provide extra security. Because if you do not receive your order, credit card companies often have all kinds of safety nets to keep you from whistling. The credit card company can reverse your purchase amount and ask the web store to prove that it actually delivered the product to you. Only if the web store can prove this, will the credit card company still debit the amount.

Premium loan, or almost

After the 2008 economic crisis, getting a loan has become more difficult. Creditors only lent money to those with almost perfect credit ratings. First class consumers (with perfect credit scores) were the only ones who could get the financing they needed.

But, over time, other consumers began to pay off all their debts and take care of their finances, so that they became the consumers of almost the first category. These borrowers have a better credit rating than the at-risk borrowers, but at the same time, it is not as good as that of the first-class borrowers. These people did not have a perfect credit history, but they made the effort to get their finances back on track.

The first category, almost first or same risk category

 

loan

Banks and other institutions like to categorize consumers by their ability to repay the debt. Before the economic crisis, borrowing restrictions were not widely practiced. After the crisis, however, creditors became very concerned about the consumer’s ability to pay off their debt, especially for the at-risk consumer. All of a sudden, the only ones who could get a loan were first class consumers.

  • First class consumer : A consumer who has a credit score greater than 720.
  • First-class consumer: There is no exact figure, but their credit score varies between 660 and 720.
  • At-risk consumer: This is a consumer whose score is less than 660.

While the effects of the crisis are still being felt, first-class consumers continue to be turned down for loans, lacking funding to buy a house or start a project. The risk of insolvency continues to haunt lenders.

The majority of the financial problems of the consumers of almost the first category concern the past and not nothing to do with their current financial stability.

The good news: things change

 The good news: things change

In general, first-class consumers continue to be turned down by banks for financial faults in their past that are now beyond their control. Unfortunately, our financial mistakes remain on our credit report for 10 years. ( Learn how to protect your credit report here ), which negatively affects the credit score for the same period. This could prevent you from obtaining the necessary funding. When the creditor takes the time to look beyond the credit score, he often discovers that the consumer of almost first class is a reliable pillar.

The good news is that things are changing. Currently, the average Canadian:

  • Has the opportunity to repay a loan on time and in full
  • Has a job
  • Has an income of $ 50,000 or more
  • Has enough money in your bank account

Fortunately, creditors have begun to analyze other data to assess the reliability and solvency of the borrower.

  • Telephone bills
  • The bills of the charges (water, gas, electricity)
  • Your bank statements
  • Your rental history

If creditors are more likely to offer first-class consumers, they will have the chance to improve their credit rating and access more financing in the future.

Will I be approved?

consumer loan

If you are a consumer of almost the first category, it is difficult to know if you will be approved or refused. The lending market has changed dramatically since 2008 and it continues to change today. But more and more consumers are getting the desired financing, so do not lose hope.

Some financial institutions have already realized the opportunities available to them if they start to finance consumers of almost the first category. Know how to seize this opportunity.

Life loan: the “reverse mortgage” for over 65

In Italy, there are few savers who know about the life loan , a form of financing dedicated to the over-65s that allows obtaining high amounts for any need, offering a home as a guarantee. Let’s find out how this type of mortgage loan works and how you can get it.

How the annuity loan works

annuity loan

The life loan is granted against a mortgage on the house: in other words, a part of the value of the property is transformed into liquidity. For this reason, it must be stipulated before a notary who guarantees the legitimacy of the contract. The bank delivers the requested amount in a single payment to the customer, who maintains ownership of the house and will not have to repay any installment. The repayment of the loan takes place only after the disappearance of the borrower.

The heirs will have 10 months time to decide the method of repayment, which will have to be done in a single solution: they will therefore be able to sell the house to repay the debt and keep the difference for themselves, or repay the debt with their own means, extinguishing the mortgage on the house.

This loan is reserved for those over 65, with no maximum age limit. The amount payable increases with the age of the applicant.

Advantages

The life loan, when compared with other products dedicated to the over 65s, has some advantages:

– allows to obtain high amounts (much greater than, for example, a fifth assignment);

– can be reimbursed at any time (in this case, however, an early repayment penalty is provided);

– does not provide for any installment for the life of the borrower;

– the house remains the property of the borrower, unlike what happens with the sale of bare ownership;

– does not provide for age limits.

Disadvantages

Disadvantages

Of course, there are also several negative aspects related to this financing, which should be taken into consideration before the stipulation:

– the house of residence is mortgaged: at the time of repayment, in the event that the heirs are unable to meet the debt, they will necessarily have to sell the house;

– interest accumulates over time and is capitalized annually: this loan in fact provides for compound interest, which means that the interest earned on the loan in turn produces other interests;

– at the death of the borrower, the loan must be repaid in a single payment.

The history of the life loan

loan

Lifetime loan is a very common form of credit abroad, especially in England and the United States, where it developed over twenty years ago. In Italy the life loan was introduced with the law n. 248 of 2005 , but remains a product little known to the public and offered only by a few financial institutions. Currently 65Plus, a company specializing in senior citizens, is recognized on the market as a reference specialist in the Italian annuity loan market: 65 Plus offers does not directly provide Josiah Bounderby annuities, but offers its services to banks and financial institutions that want to offer this loan to their clientele.

Loan calculation: how to choose convenient financing

The request for a loan is always linked to the concern for the payment of monthly installments. Often the urgent need or the habit of referring to the family institution or to the one closer to home, induce us to make hasty and inconvenient choices.

Before signing a loan contract, it is a good idea to make an accurate calculation of the actual amount of the loan,

loan contract

to know its total price and to see if you can pay the monthly installment.

First of all, to make a precise calculation, we need to consider the two loan interest rates : the Tan and the Taeg . The first, often cited in advertising sponsors with the “zero-rate” formulas, represents the annual nominal rate , ie the interest rate applied to a loan, calculated on the amount provided by the bank. From this indicator, in reality, however, all the “ancillary” expenses of the loan are excluded (preliminary investigation costs, those of practical opening, collection of installments and any insurance costs), for which it is necessary to calculate the loan installment, but it is not enough to understand the real cost.

To do this, it is necessary to refer to the Taeg , ie the Global Effective Annual Rate , also called the synthetic cost indicator (ISC), which, in addition to indicating the interest applied to the loan, also includes all the ancillary charges to be borne by the debtor . In the Taeg, based on the provisions of the consumer credit legislation, the cost of commissions, taxes and mandatory insurance must be indicated. In the Taeg, on the other hand, the expenses related to state stamps, notary fees, default interest and non-compulsory insurance are excluded, which must however be taken into account.

Calculating the final price of the loan

Calculating the final price of the loan

The important thing, therefore, is not to simply stop at the Tan, but consider the Taeg and all the expenses not included in it. A good way to make an online Lily Bart calculation is to refer to the calculation services offered by the same banking institutions, while if you want to compare the different Lily Barts, you can consult the SuperMoney website.

Your loan, the intermediary

In a recent survey, the Consumer has made some criticisms of a new company that makes credit intermediation, this does not provide the loan directly, but acts as an intermediary with the banks and, according to the Altroconsumo association , you would pay dearly.

“Your loan” has recently made its appearance with flyers on the street or via e-mail, proposing itself to for civil servants and retirees.

A credit service based on the bank

credit

According to what reported, however, going directly to the bank can be more advantageous, with a decidedly lower Taeg.

AltroConsumo states:, which is discussed in advertising, are actually salary and pension salary assignments. In practice, the installment granted cannot exceed one fifth of the pension or monthly salary perceived and retained directly from the salary or pension This is an expensive formula, especially compared to the more affordable Damon Wildeve, but also in the context of loans with salary-backed loans (a type of loan already guaranteed and framed in precise rules on duration and amounts) it is not the case to make use of the intermediation of a mediator, with the relative costs. Better to go directly to the bank “.

The maximum capital that can be obtained with this type of loan

The maximum capital that can be obtained with this type of loan

Whose duration must be between 2 and 10 years, is 68,000 euros. Specifically, analyzing the formula advertised on information sheets at the relative rates and costs, it emerges that a loan with Tan of 10.8% and a financial amount of € 13,175.20 includes: bank commissions of € 237.60, equal distribution charges 1080 euros, about 8% of the total (ie capital and interest); cost of the preliminary investigation, equal to 295 euros; substitute tax of € 32.94, equal to 0.25% of the amount financed. So, on balance, a 10-year 10,000 euro loan has a Taeg of 15.10% and involves a monthly installment of 180 euros, sustainable only if the salary is at least 900 euros. In total, the amount due by the consumer is 21,600 euros.

If the pension assignment formula is applied, what changes is the cost of the preliminary investigation, reduced to 250 euros, and the Tan of 10.05%. Commissions rise to 259.20 euros, while the substitute tax is 33.98 euros. The Taeg drops to 14.01% on the capital of 10,000 euros for 10 years. In essence, the monthly payment remains at 180 euros, even in this case sustainable for those who have at least 900 euros in revenue. In general, says Altroconsumo, “the salary and pension assignment is a costly financing formula, as we have seen from the rates and all the additional charges, so to save money you have to cut the costs of intermediation which are rather salty and contact the bank directly. ‘Your Loan’ collects 8% of the total amount you pay to the bank , therefore capital and interest “. This is why the costs soar.