Project

Controversy over deficit spending draws attention of many economists. For some, deficit spending is a necessity in today's world, even while acknowledging that spending must always be done for a good reason. Others would like to eliminate spending more than revenues exceed in total, pointing out that while it's difficult, there are households, businesses and even governments that manage to do it. If deficit financing is required, follow a few tips to help qualify the expense before it occurs and ensure the deficit is eliminated as quickly as possible.

The general concept of deficit financing is applied to governments that spend money on services before that money is actually available to spend. The same concept can be applied to households that incur debt to buy things that the monthly income stream cannot fully pay for at that time, such as the cost of a home or a car. In both scenarios, there is a need to secure financing that fits well with projected future income and allows for adequate repayment of accumulated debt.

For not being directly measurable and changing over time, there is a surprising amount of discussion about the neutral interest rate, says Ninety One's Russell Silberston. And rightly so.

You've been dreaming of building a house or buying an apartment for a long time, and you're finally on the verge of making that dream come true – if only it weren't for the myriad of financing options you're faced with even at the first exploratory stage. But don't worry: In the following article, we'll explain how you can keep an eye on your financial options and make a well-founded comparison of the almost unmanageable number of offers.

Buy or rent? – The question of principle

But one thing at a time. Before you get serious about financing your home, you need to answer two basic questions: First, are you really willing to go into debt to buy a home, or are you more of a fan of the flexibility that comes with renting?? Secondly, what would be affordable for you if you were to change your current or. would invest a potential monthly rent in a real estate loan?

By Jonas Aston | "I want you to have it better than me one day". Each of us has heard this sentence at least once in our lives. In this sentence there is loving affection, but also the subliminal threat that you should be diligent and make something of your life. Over many generations this worked out and the children were mostly better off than the parents. In the meantime this is however everything else than natural. Many young people are happy if they can at least maintain the prosperity they know from the parental home. The phrase "you should be better off than me" is increasingly becoming wishful thinking. The goings-on of politics in recent years are calling the promise of upward mobility into question for the long term.

Between 1978 and 2010, disposable income for 25- to 29-year-olds fell 11 percent compared to the national average. Going forward, the outlook does not look rosier. Quite the opposite: the trend will intensify and that is anything but surprising. In fact, nowadays it is almost impossible for young people to build up assets. In a European comparison, Germans have a high income. However, the wealth of the Germans is extremely low. This is mainly due to the low home ownership rate. The reasons for this are mainly the two lost world wars. In addition, there are the expropriations on the territory of the former GDR and the strongly developed tenancy law in Germany.

People may think a medical degree can help you get a home loan. But it's more complex and almost impossible for physicians. Medical graduates, especially college graduates, often have high debt-to-income ratios due to student loans, making it difficult to qualify for conventional home loans. Even doctors have problems when they have no savings.

Many people who finally want to buy their own car wonder whether car financing despite SCHUFA is actually possible. The KREDIT 123 team would like to address this question and provides a detailed answer below.

As is well known, the ECB key interest rates have now been at a historic low for about a year. The European Central Bank, in order to stimulate the economy, has decreed for some time that the key interest rate is at 0.0 percent. Thus, banks can now borrow from the European Central Bank for free.

This has led, among other things, to the fact that investors on the one hand hardly still receive interest for their deposits, but on the other hand the credit interest rates have clearly sunk. In the investment sector, some banks are now even starting to charge so-called penalty interest on larger balances. So the investor then pays interest to the bank on his balance, and not the other way around, as it should be. For this reason, among others, some credit seekers ask themselves whether there might even be interest-free loans in the future.

It was the first quarter of losses since March 2020. The total loss of the S&P 500 for the quarter was approximately 5%. Even more important, however, are the activities on the bond markets, which could help determine the future of the stock markets. The Fed's newfound focus on fighting inflation with the ability to raise interest rates on 15. May's 50 basis point hike has caused the two-year Treasury yield to rise by the most since 1984. This led to a reversal of the most widely watched spread between 2-year and 10-year government bond yields. Why is this so important? Each of the last six recessions, dating back to 1955, has been preceded by a yield reversal. It was followed by a recession of between 6 and 24 months. That's not a lot of information to make investment decisions on. Incidentally, a yield inversion has happened many times in the interim, but without triggering a recession.

If it is about the construction of a house, the purchase of a condominium or other expensive purchases, many people use a loan to be able to realize the desired construction financing. In most cases this is a so-called annuity loan. But although this form of credit is very popular in this country, not all borrowers know by far what annuity means and how an annuity loan works exactly.

The term annuity derives from the Latin word annuus (annually, every year) and is used in today's financial world to refer to the constant annual installments of an amortizing loan. So, simply put, an annuity loan is a special type of loan with constant loan installments that remain the same over the agreed period of fixed interest rates. The borrower not only benefits from a well predictable monthly burden, but also hedges against rising interest rates. Due to this solid calculation and the high flexibility, this type of financing has become one of the most used for properties.

Who does not dream of owning a home. But in the today's time this presents itself for ever more as a hurdle. The interest rates for a construction financing are rising and because of the high demand, so are the real estate prices. This makes it impossible for many to purchase their own home. After all, buying a house is supposed to be an investment rather than a debt trap. Who can, should therefore fall back on alternatives, with which the dream of own home can still be realized. Such a solution mini houses offer. The trend to the mini house has its reasons, because the mobile house solutions are already available under 100.000 euros. It was never so favorable to buy a house and who informs itself extensively, can easily overcome the hurdles with the correct financing with the acquisition of own home.

What must be considered with the purchase of a mobile house?