So save up for a house here’s all you need to know

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How to save for a home: here's everything you need to know

The thought of buying a home can be daunting. They cost hundreds of thousands of dollars and it starts with a large down payment. It also doesn't help that so much of our typical "American dream" is tied to being a homeowner. It feels like too much, but it doesn't have to be. If you have a good plan and know a little more about real estate, you'll find that saving for a down payment is quite doable. Here's your simple guide to saving for a home.

Review your budget

No one really enjoys budgeting, but if you're serious about saving for a house, this is the first step. Take a Look closely at all of your income and expenses . It may not be the most fun way to spend an afternoon, but until you've accounted for every penny, saving for a down payment will prove difficult.

You'll want to break your spending into two categories – mandatory and discretionary. Mandatory expenses are things like rent, insurance and food. Discretionary would include Netflix and other things you can do without, even if you don't want to!

Once you've made this list, you can look for where you can make cuts to save for that down payment. However, there are a few more steps that will make the last part of budgeting less painful.

Calculate some mortgages

The second step in your plan is to figure out how much money you really need for your home. To do this, it's best to compare the mortgage to what you're already paying in rent. If your rent is $1500 per month, you can afford a mortgage payment in the same stadium. You can also find many mortgage calculators online to help with this part.

As part of your price research, there are a few extra steps that go a long way. If you check your credit score, you can find out what interest rates to expect . You can even try to get pre-approved for a mortgage. Then you know exactly what your options are.

It's important to be able to estimate property taxes and insurance and add those to your monthly mortgage payment. This will tell you exactly how much is coming out of your pocket, and with all that, you can set a price limit for your home purchase. For your down payment, you need to save 10 to 20 percent off the total price of the home.

Weigh your down payment options

Without help, you should assume you need a 20 percent down payment for each home. If this is your first home, there are several resources that can help you significantly lower your down payment.

The first is to have the federal housing agency . This is a government program that helps first-time home buyers. FHA loans typically have lower down payments and fixed interest rates, and exploring these loans will give you real numbers to help you set your savings goals.

It's also worth mentioning that the FHA offers financial planning assistance. If you're new to buying a home, working with the FHA will help you get a good idea of all the little things you need to know about the process.

Outside of government programs, you can learn more about . Experience private mortgage insurance (PMI). This is a special insurance policy that allows you to make a smaller down payment. It will increase your monthly housing bill, but it could make getting started in your new home much easier. Basically, the money you don't put down in a down payment is split into a monthly payment that is added to your mortgage until you catch up on the down payment.

Set your budget

At that point, you know where your money is, and you know how much you need to save for your down payment. It's time to decide how you will acquire that money. It starts with saving. Even if you only save $10 a week for something, it adds up quickly over the course of a year. If you can skim your phone bill, your utilities, and maybe your insurance, you're well on your way, and that doesn't include cuts you can make to your discretionary spending.

You can also look for extra income. Everyone is talking about the side hustle, and it's a legitimate way to protect your down payment. Even if you channel your inner teenager and mow lawns or babysit for some extra cash, you'll get that down payment as long as you put it away. For an additional 50 US dollars per week you do not need much time, but it becomes 2500 US dollars per year. Every penny counts.

Saving for a house seems daunting until you break it into smaller pieces. It's not about acquiring thousands of dollars. It's about making small decisions over time that set you up for success. Stick with it and you'll be fine.

Yes. The law stipulates that contracts of sale for a property must be notarized; if this form is not observed, the contract is null and void and thus legally ineffective. The so-called conveyance, i.e. the declaration on the transfer of ownership, must also be made by the parties before the notary public. The legislator wants to protect the purchase contract parties thereby. Contracts for land or apartments should not be concluded rashly, the notary should comprehensively inform the parties about all relevant aspects and risks.

How long does it take to complete the purchase contract?

Between the notarization of the purchase contract and the payment of the purchase price as well as the handover there are usually 4-6 weeks. This time is needed to bring about the maturity requirements. The notary must register a priority notice of conveyance in the land register for the benefit of the purchasers and obtain the cancellation documents for existing liens on real property. In addition, permits must often be obtained, such as the consent of the administrator in the case of a condominium, or the declaration of waiver of pre-emption by the community in the case of a house lot.

Which ancillary costs are incurred?

In addition to the purchase price, the buyer must also calculate the ancillary costs incurred. These are mainly the land transfer tax and the notary and land registry fees. The land transfer tax varies from state to state. In Hamburg it is currently 4.5% of the purchase price, in Schleswig-Holstein even 6.5. The notary and land registry costs are ca. at 1.5-2%, depending on the individual case, these can vary.

In addition, buyers should of course think carefully about whether they still need capital for conversion or renovation work. Depending on the condition of the object of purchase, considerable additional expenses may be required.

What if the property is rented?

Basically, the new owner is stepping into existing tenancies. Buying does not break rent. If one would like to continue to rent the property in the future, then one should inform oneself before the purchase exactly about the modalities of the tenancy (rent amount, security deposit, existing disputes from the tenancy etc.).). If one wishes to move into the property oneself, an existing tenancy can prove to be problematic. There is the possibility of the own need notice, this is subject however to high requirements, under circumstances first a process lasting months must be led.

What are building encumbrances?

Building encumbrances are certain encumbrances on the property that are not registered as such in the land register (z.B. The acquiescence of setback areas). Since the notary does not inspect the building encumbrance register, the buyers should do this themselves before concluding the contract. Existing building encumbrances can, under certain circumstances, significantly influence the value of the property.

What happens to existing encumbrances?

Land charges are almost always found in sections II and III of the land register. As far as entries in Division II are concerned, these are usually to be paid by the buyer. These are typically easements, such as rights of way or pipeline rights in favor of other properties. The notary would only be able to have these deleted if the entitled persons would grant this. However, this will rarely be the case with corresponding easements.

The situation is different with encumbrances in section III of the land register. These are so-called real estate liens (mortgages and land charges), which have usually been registered in favor of lenders of the owners. These encumbrances must be cleared, as the new owner does not want to take on the liabilities of his predecessor. Insofar as the liens on real property are still opposed by outstanding claims, the lenders will only agree to the cancellation if they receive their claims from the purchase price.

In rare cases, buyers take over existing mortgages in order to use them for their own financing.

Daniel Steck, executive director, is a senior portfolio manager and U.S. equity analyst at REYL

Hillary Clinton and Donald Trump, don't seem to stir up passions among the American people. There is also indifference in the financial markets, says Daniel Steck, executive director, senior portfolio manager and U.S. equity analyst at REYL.

On 8. November, the U.S. will elect its new president, who will succeed Barack Obama. But one is a far cry from the enthusiasm its candidacy eight years ago had generated in the U.S. as well as abroad. The two title contenders, Hillary Clinton and Donald Trump, don't seem to be stirring up passions, aside from the Republican's polemical statements, and are raising doubts even within their own ranks. Indifference also prevails on the financial markets. One might have expected some nervousness on the part of investors before this important date. But there is no sign of this. Evidence of this is the volatility of U.S. equities, as measured by the VIX index, which remains at extremely low levels, indicating a certain serenity among financial players.

Reassuring consistency
The calm in the markets is due to the fact that a consensus has largely emerged in favor of a victory for the Democratic nominee. What gives investors confidence, however, is not Hillary Clinton's program, but rather the relative political status quo that her election would entail. For the congressional elections, which will be held on the same day, are also likely to produce a result similar to today's situation, with a Republican House of Representatives and a Democratic Senate. A Congress with a Republican majority would severely limit the president's room for maneuver.So what are the points of contention in this election and what reforms could still be introduced? Could some of them pose a threat to the financial markets?

Reduced room for maneuver
The two title contenders and their respective parties hold opposing views on many issues. This will probably result in a blockade in Congress. One of the most striking controversies concerns tax policy. Clinton wants to tax high income brackets more and limit certain benefits. These choices could generate more than $1.1 trillion over the next decade. Of course, such a tax reform seems unlikely without a Democratic majority in Congress. Trump, on the other hand, never squeamish, proposes drastic tax cuts for individuals and businesses. The problem is that the implementation of such a program would result in a $3 trillion revenue shortfall and would significantly unbalance the national budget. As a result, it is unlikely that Congress, even with a Republican majority, would agree to such an extreme position.

On health care, the future leader will also be at an impasse. Despite the vehemence of her remarks, Hillary Clinton will not be able to impose controls on drug prices if the balance of power in Congress remains unchanged. And their opponent will probably not be able to draw a line under the achievements that have been made thanks to Obamacare. Because it is important to remember that the percentage of Americans excluded from health care has dropped from 18 percent three years ago to less than 11 percent today. A step back is unthinkable.

Points of approximation
So will the U.S. election have no impact on the economy at all? Despite their differences, Hillary and Donald agree on several issues, which will undoubtedly lead to concrete decisions. First, all parties agree that there is an urgent need to renew aging infrastructure after years of inadequate investment. Hillary Clinton has proposed launching a $500 billion program aimed primarily at modernizing roads, rails, airports and telecommunications equipment. Trump topped them, talking about a double amount, though he forgot to explain how he will finance it. Whatever the outcome of the election it is to be expected that the proposals in this area will be adopted by Congress in one form or another.

A second area of agreement, to be sure, concerns the treatment of cash holdings that U.S. companies have parked overseas. It is estimated that over $1 trillion is blocked abroad because repatriation is highly taxed (35%). Trump proposes a partial amnesty (tax rate of 10%), while Clinton recommends a more global solution in both cases, $200 billion could be repatriated to the U.S. and benefit business investment in a significant way. With regard to foreign trade, the investor, who is a strong advocate of maximum liberalization of this area, considers Donald Trump a threat. The candidate has vehemently stated on several occasions that if he wins, he will renegotiate or even abolish numerous international agreements, such as the NAFTA or TTIP free trade agreements currently being negotiated with Europe. But it's too easy to forget that Hillary Clinton also emphasized that the American worker has suffered greatly from globalization and free trade policies. Therefore, regardless of the outcome of the election, one must expect a return to protectionism.

Beware of a sudden turnaround at the last minute
In the months following a presidential election, when hot campaign talk gradually gives way to pragmatic decisions, the U.S. stock market has historically held up well. Nevertheless, we should beware of excessive downplaying, because a last-minute turnaround is always possible. Indeed, it is not certain that the prospect of a Donald Trump presidency, reinforced by a majority in Congress, will be so well received by investors. While the market is generally not very favorable to democrats, it detests uncertainty, lack of visibility and brutal changes in the environment above all else. You have to expect all of this from Donald Trump.

Review your budget

Calculate some mortgages

Weigh your down payment options

Set your budget

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