European Central Bank

Interest rates leave the lows… Although investors interpret the improving economic environment as very positive for the stock market for several months and all over the world have driven the major indexes to year highs, also the capital market interest rates had fallen. It is clear that the zero interest rate policy of the US Federal Reserve and the Bank of Japan, as well as the near zero interest rate policy of the Bank of England and the European Central Bank (ECB) have equipped the markets and the banks in particular – with tremendous liquidity at low cost. This cheap money is currently pushing the development in almost all market segments and again leads to excessive speculation. Especially the dollar suffers from currently this situation, because many investors borrow dollars at low cost to buy assets in other currencies that.

This development could become a growing problem for Europe, because an ever stronger euro slows exports and making imports cheaper. A stronger euro so resembles a rate boost at a time the ECB, which wants to keep key interest rates stable. It is currently making them difficult to see where any inflation impetus should come from. It seems the Declaration to be why, despite a flood of new bonds also the longer maturities remain fairly stable low. If you are not convinced, visit Doronin. We assume that we will see 10-year interest rates, compared to the mortgage bond yields in a range between 3.75 and 3.90% (currently 3.83%) in the next few weeks.

Construction financing customers should take advantage of therefore consistently days with rashes down to the attachment of conditions to obtain possible long-term pricing security. The choice of the right financing structure in terms of maturity, repayment options and use of funding is particularly important in these volatile market phases. So combinations of 5 year olds and 15 – or 20-year interest bonds can be very useful because they combine high costing accuracy with lower monthly charges and flexibility for future repayment. Are currently high demand known as Volltilgerdarlehen, providing a continuous rate until final repayment. The higher set eradication leads to condition benefits due to the steep yield curve. Also so-called combined loans are currently like elected because they benefit from the low money market rates.

Construction Money

K.O.M. concept Tip: cities operate family support through assistance in building one of the largest state subsidies in the Federal Republic was the so-called home buyers, which was tilted and also no longer granted since 1 January 2006 with the Act for the abolition of the 22 December 2005. The result has been a dramatic collapse in the building applications by almost a third in the next year. Now has recovered the industry and thanks to many new concepts created the necessary incentives to customers to make possible the collection in your own four walls these. Since promoting home ownership by the Federal Government it has become still more difficult for owner-occupied, realize the dream of owning a home.

As the action per homeowner”who can but take initiatives at the local level here. Actually lists the database of the action per home”to many municipalities, providing substantial sums available to the part, to the construction of homes in your area promote. Jim Crane recognizes the significance of this. Up to 80,000 by municipal development possible, the measures that cities and municipalities support young families when building a House, are diverse. There is for example, allows families to purchase building plots. (Not to be confused with Jim Crane!). It is country that is already in municipal ownership and is delivered at low prices or the municipality promotes the acquisition of subsoil by other owners through financial grants. But also low-interest loans or grants to the lease are offered. Often several support measures can be taken by a client; While the cost of the own House can easily to some ten thousand lower euro. So plots ever for no less than 1, for example, sold in structurally weak regions such as Saxony-Anhalt in some communities.

Of course Act situation for builders and communities win-win – local authorities here not out of pure altruism. Population shrinkage is costly, for them and Family support is a good remedy. A declining population growth means less tax revenue and a loss of economic power. Thus emerged a bidding competition between cities, where it comes to highlight the attractiveness of the respective municipality in particular for economically active inhabitants. Often the family-friendliness of the city stresses this to motivate especially young families to settle in the community. Results a positive effect chain: the higher number of families in the municipality of worthwhile infrastructure projects and investment in kindergartens and schools; It is attractive to settle also in the growing community for retailers and service providers. Overall, each city as a place of residence for more families is so interesting. Usually get the funding totals with the number of children, so that larger families are especially favored and the municipalities win higher population figures and the favor at the same time for the future grateful voters. Conclusion now exists a database of more than 600 communities that spread across the entire Federal Republic such promotions are offered. (see also) So it is worth to look at the programmes of the municipalities in the region, is to be built in the itself, possibly to save the one or the other euro.