Month: April 2018

PP accuses the PSOE of the debt contracted by the City of Colmenar, which exceeds five million euros

PP accuses the PSOE of the debt contracted by the City of Colmenar, which exceeds five million euros

The general coordinator of the PP of Malaga, Francisco Oblaré, has accused the PSOE on Wednesday of having left the municipality of Colmenar, during the previous term when the Socialists were at the head of the City Council, "in the most critical situation in its history", with a debt that "exceeds" the five million euros.

The general coordinator of the PP of Malaga, Francisco Oblaré, has accused the PSOE on Wednesday of having left the municipality of Colmenar, during the previous term when the Socialists were at the head of the City Council, "in the most critical situation in its history", with a debt that "exceeds" the five million euros.

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Oblaré reported, this Wednesday at a press conference, that the debt is generated by bank loans of 2.7 million euros, to which we must add two million to be returned to the Board for grants that "have not been duly executed "and almost 600,000 euros of payment to suppliers.

On this payment, the mayor of Colmenar, Antonio Fernandez, has warned that "at the beginning of the legislature 1.13 million were owed to suppliers and we have already managed to pay close to 600,000 euros."

He also explained that the subsidies received by the Junta de Andalucía from 2007 to 2011 add up to a total of 1.6 million euros, but whose return reaches two million for the interest generated. Thus, the City "is obliged to return them because the previous team allocated much of these funds for other purposes" and it is "very difficult to know where they have gone because there is a single box", lamented Fernandez.

The affected projects are the construction of a day-stay center, the municipal morgue, a covered sports court, the installation of artificial turf -which has been executed but the Andalusian Government requests the reimbursement of the aid when including it in the agreement of the polideportivo-, and the recovery of the hermitage environment.

On the construction of the funeral home, the mayor added that "it is necessary" and that they are "waiting for subsidies to do so", assuring that it is expected to take place "in September". In this sense, Fernandez explained that the budget for its construction is 200,000 euros and "not more than one million as claimed by the Socialists", since "will have only two rooms and will be of an adequate size to a municipality of 3,600 population".

The councilman regretted that his administration is suffering "serious criticism" by the opposition "when it was the Socialists who for years have been devoted to squandering subsidies and municipal funds without having been able to take forward a single new project " Thus, faced with this situation, the current debt "fits more than 1,500 euros per neighbor," Fernandez underlined.

Also, Fernandez has indicated that the previous government team requested a series of bank loans totaling 2.7 million euros, "of which 24,000 euros remain in the bank account." "They have empty coffers of liquidity but full of debts," he has sentenced.

Opposition attitude

On the other hand, the mayor of Colmenar has criticized the attitude of the opposition, since he has expressed that every day "we leave the skin" for the neighbors, when the opposition "only put obstacles and complicate our lives."

Given this, the general coordinator of the 'popular' malagueños has considered that the opposition "is acting from irresponsibility, after they were unable to agree after the elections to form a government", and added that "want to drown the mayor but they are drowning the municipality. "

For this reason, he has asked for responsibility to the opposition political groups and also to the Junta de Andalucía, and has urged the new provincial delegate of the Andalusian Government, José Luis Ruíz Espejo, to "sell a hand to Colmenar", since " He seems like a good uncle. "

Finally, both Oblaré and the mayor of Colmenar have challenged the PSOE to come to an agreement with the opposition "if they want to govern in the municipality." "At least, that's what number two of the socialists from Malaga, Francisco Conejo, wants, who can not think of another way to cover the mess that has been caused there in the years of socialist management," concluded the general coordinator of the PP from Málaga.

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Hamburg – Low interest rates on loans tempt many to raise high mortgages. But those who finance real estate entirely without equity should consider five possible sources of risk.

 

Image: Couple in front of the home 

1. Gross and net financing:

Speaking of full financing Experts, if the budding real estate owner receives a loan over 100 percent of the purchase price: Costs the house 350 000 Euro, the amount comes completely from the financial institution. That’s the net financing.

In addition, brokerage commission, notary fees, land register entry and land transfer tax must be taken into account. These costs make up to twelve percent of the purchase price. In addition, relocation, renovation and spending on new furniture are required. These items taken together correspond to the gross financing.

Anyone who wants to borrow the money for these additional expenses, requires significantly more than a 100-percent financing. Most banks either do not agree or require a risk premium in the form of higher lending rates. Michael Knobloch from the Institute for Financial Services (iff) in Hamburg therefore advises that at least the ancillary costs and the move out of equity be denied.

2. Term and repayment:

Whoever receives a lot of money stutters for a long time. With a 100 percent funding with only 1 percent repayment, it can take a long time for the mortgage to be paid off and the real estate owner finally in-house master. Christiane Kienitz, adviser for real estate financing at the consumer advisory Hessen, calculates: A loan of 150 000 € will be fixed over ten years. The effective interest rate is 1.5 percent per annum, the repayment rate is 1 percent. After 10 years, the remaining debt is still around 133 800 euros.

How long it takes for the loan to be fully repaid depends, among other things, on the interest rate then due on follow-up financing. If the remaining debt has to be paid 6 percent interest, Kienitz claims that the loan has a total term of more than 34 years. If the follow-on interest rate is 3.5 percent, the loan is repaid after almost 44 years. As long as the bank is in the land register.

The banks had responded to this situation: Meanwhile, the standard repayment has been increased to 2 percent to prevent extremely long maturities. “Anyone who wants to further optimize their financing, repays even higher or at least agreed special repayments.”

3. follow-up financing and price fluctuations:

Mortgage contracts usually set a fixed interest rate of ten years. If interest rates rise, it will be tight if full funding is granted by the end of the deadline. Because there was little repayment from the loan originally taken, the burden of debt reduction increases instead of falling as a result of the low level of debt relief. “High follow-up rate for follow-up financing,” Kienitz sums up the phenomenon. Priceless rates then bring many fully-funded property owners to the brink of ruin.

Michael Knobloch sees another risk in market price fluctuations. Falling real estate prices or depreciation could bring borrowers into trouble who have to leave their homes or leases during the repayment period. “They bought for 350,000 euros, but can only sell for 300,000 euros.” On the balance, the seller remains seated.

4. Early arrears and compensation:

Financial institutions can pay the early repayment of a loan expensive. You are legally entitled to a prepayment penalty if a fixed interest rate was agreed in the contract. This compensation can quickly be in the five-digit euro range.

This burdened with a full financing considerably: A acquired for 350 000 €, fully leveraged house is to be sold after just one year. Due to low repayment, the owner still stands with 348 000 euros in the chalk. The bank also demands a prepayment penalty of 15,000 euros. Below the line, the debt increases to 363 000 euros.

Missing the money for lack of savings, to pay the compensation out of pocket, a new – and more expensive – installment loan is required. Otherwise the house sales wobble. Knobloch: “The bank only gets out of the contract if the mortgage is canceled, which will only happen if there are no more debts.”

5. Validity and vicissitudes of life:

The low interest rates tempt to raise high mortgages. In the assumption “that’s alright”, some willing consumers are inclined to self-esteem, according to the Frankfurt financial adviser Max Herbst: “I live in a luxury apartment, then I buy a luxury apartment.” Opinions often differ as to whether the object is worth the money. While the borrower wants to flick for the dream apartment half a million euros on the table, the bank wants to grant only a loan over 400 000 €. In their view, this equates to 100 percent financing.

Divorce, children, job loss, illness: In a full financing every change in income beats immediately into the office. Anyone who has already pushed the limit with the rate usually no longer has a chance to absorb financial bottlenecks. Threatens then the emergency sale, the disaster is there.