Property tax: It is not only the building loan that counts when it comes to owning a home

As soon as it comes to home ownership, every household has to deal with certain hurdles and challenges. A first obstacle is the building loan. Its planning and preparation determine how satisfied you are with the decision over the years.

On the other hand, builders and property buyers are always faced with costs that cannot be avoided when buying property. We are talking about:

  • Notary fees
  • the land register entry
  • and property tax.

How much is property tax? Why are taxes different between municipalities?

Property tax – the calculation of the tax

Property tax - the calculation of the tax

In principle, property tax is levied in Germany for the ownership of real estate and land.

Partial ownership and leasehold rights are also recorded.

The following variables form the basis of the calculation:

  • the unit value (determined by the tax office)
  • the property tax metric
  • the lifting rate (by municipality).

These three basic factors result in the tax liability applicable to the respective property.

Example: The unit value of a single-family home is set at 100,000 USD. The measure used here (old federal states) is a rate of 3.5 per mille or 0.0035 percent. The municipality estimates a rate of 375 percent. For the example, the property tax amount is USD 350 and the annual tax is USD 1,225.

  • Different types of tax are differentiated from each other in property tax law. Property tax A is levied on agricultural land. Property tax B (for built-up property) is intended for residential property.

Take property tax into account when buying property

Take property tax into account when buying property

Families today often only see the advantages of buying land. Ultimately, the low building rates ensure that you quickly decide on the building loan and home. Especially the incidental purchase costs mentioned at the beginning and the fact that the purchaser has to finance the property tax are often forgotten here.

The example calculation already shows the effects and financial scope of the tax. Anyone who decides to buy a property as a household – whether as a family or single – must be aware of the consequences of their decision.

And should also inform yourself in advance about the lifting rates. While some municipalities work with a factor of less than four, in individual cases a lifting rate of more than 800 percent can be found.

85,000 dollars loan for self-employed – now from 857 dollars

Self-employed people who apply for a 85,000 USD loan for self-employed workers face a number of hurdles. If employees with the appropriate creditworthiness receive a loan without problems after submitting salary slips from the last three months, the self-employed will be asked to do a lot for an self-employed person at USD 85,000.

Banks require considerably more evidence from the self-employed than from the employee or official.

What makes the 85,000 USD loan so difficult?

What makes the 85,000 USD loan so difficult?

Many banks shut themselves off when a self-employed person asks for a loan. This is not arbitrary by the banks, but simply lacks medium or long-term payment security. Employees can demonstrate a regular monthly income. The self-employed cannot do this. Your income varies widely and fluctuates from month to month.

Total seasonal drops are also often noticed. Banks therefore have no security as to whether the 85,000 USD loan can also be paid for the self-employed. The self-employed can also show no certainty whether things will go as well next year as, for example, now. Banks do not have such collateral with an employee, considering that an employee can be on the street within six months.

But there is a strip of green on the horizon for the self-employed. There are more and more lenders offering a special 85,000 USD loan for the self-employed.

What are the financing options for a self-employed loan?

What are the financing options for a self-employed loan?

There are not many lenders, but there are various financing options available to this professional group. On the one hand, there is the bank’s 85,000 USD loan for the self-employed. There are promotional loans for start-ups. Financing can be processed via so-called crowdfunding platforms and, under certain circumstances, a Credit Bureau-free loan can be granted.

This gives the self-employed the opportunity to receive a 85,000 USD loan for a self-employed person from a bank. Most of these loans are declared as installment loans. There is also the possibility to get an 85,000 USD loan for the self-employed without a bank. Without a bank, these are the P2P loans from private to private (crowdfunding).

Crowdfunding – what is it?

Crowdfunding - what is it?

Here, self-employed persons can create a profile for a loan for self-employed persons of 85,000 USD on certain credit platforms and present the loan request. There are private investors who want to invest their savings even more profitably. Some private investors like the loan request and they are also convinced that the self-employed will repay the USD 85,000 loan for the self-employed is offered on the loan amount.

If the loan amount is complete, the further process is handled by a bank. Of course, with this type of loan the borrower also has to pay interest, sometimes higher interest. But many loan seekers accept this if their loan for self-employed persons is approved at 85,000 USD. If there is a bad Credit Bureau, it should not be kept secret. After successful credit determination, a commission is paid to the credit platform. You can find out more about these on these platforms.

Special offers for the loan for self-employed 85,000 USD

Special offers for the loan for self-employed 85,000 USD

It is precisely the direct banks that specifically provide a loan for the self-employed at 85,000 USD. However, the self-employed have to prepare for a strict credit check. Nevertheless, the self-employed can hope for a loan for the self-employed 85,000 USD, because it is not immediately rejected. The conditions for a loan for self-employed persons of 85,000 USD are broadly similar. This assumes an average income.

The independence has existed for at least three years. The place of residence must be in Germany. The self-employed can submit a business evaluation (BWA), a balance sheet, profit and loss account as well as income tax assessments.

A business plan is also often requested and access to business contacts and order books is also requested. In general, a loan for self-employed persons is examined more strictly than a loan for an employee.

Do self-employed people get a loan even if they have bad Credit Bureau?

Do self-employed people get a loan even if they have bad Credit Bureau?

If the self-employed have a bad Credit Bureau, their credit wish is often almost hopeless. While the banks are already causing difficulties with good self-employment, they will reject those with bad Credit Bureau. The advertising of some credit agencies promise that the self-employed will also receive an 85,000 USD loan for the self-employed, but the loan offer is more than poor.

A regular and sufficiently high income must be proven for a Credit Bureau-free loan. Permanent employment is also mandatory. But the self-employed cannot show that. There are banks that make the exception if they have been self-employed for three years. Doctors and lawyers are regarded as an exception to this restriction.

This clientele is considered to be absolutely solvent, since mostly high incomes are generated. The self-employed can also offer credit collateral, if available, to the bank in the case of a loan for self-employed persons of USD 85,000.

What do these small examples show?

What do these small examples show?

These few examples clearly show how the interest rate and the term affect the credit rate. Therefore, the self-employed should make a credit comparison if they want a cheap 85,000 USD loan for the self-employed.

Merging loans? Smart plan!

What is aggregate loans?

What is aggregate loans?

If you want to aggregate your loans – also known as regrouping of loans – does that mean that you only have 1 credit left? Roughly, although this is not a black and white story. Apart from that, assume that you have a few outstanding credits. And you wish to add a new one. But then you have to determine that you have lost control of your repayments. And that you no longer see the administrative forest through the trees. After all, many people – families, but also singles and cohabiting partners – have one or more loans. Think of a mortgage, a green energy loan or other financial products. This varies, but everyone has the same wish: to avoid disorder. Under the guise of ‘better prevention than cure’, we think along with you. See http://www.uncharted3blog.com/getting-approved-home-loan-bad-credit/

Your credit institution can arrange the aggregation of all your loans. All credits are combined into 1 new loan. This gives you a clear helicopter view of the status of your repayment plan. A big advantage, because interest will also fall.

So tell us, what’s stopping you from borrowing more efficiently ? “Not all of my credits are with the same bank,” you may sputter. Yet there is also a solution for this: buy off your loan! There are minimal costs involved, but even then, regrouping loans is a smart step forward.

Regrouping your loans?

Regrouping your loans?

This is useful if…

  • You have several current credits
  • If you want to pay less costs for your current loans
  • You want to reduce or adjust the monthly repayment amount
  • You want a clear view of all your current loans

Smart borrowing? That means pooling your loans. But what about the fork in the stem? When you submit a request to your credit institution, it will conduct a thorough investigation. With the necessary analyzes, they can provide tailor-made advice. She also checks the amount you repay each month. And that for every loan, which immediately gives you a clear view. If you really want to be prepared, you can map out your credits in advance. Don’t lose sight of this: revolving loans, personal credits and other installment credits are also included. Merge them with your credit cards, mail order credits, and any lease formulas and contracts.

Understanding these elements will give you more than 1 benefit. Because that speeds up the analysis for your sofa and provides the necessary comfort. Your credit institution will also visualize your ability to repay the loans. Know that she has the right to check financial information – such as your wages. Finally, she puts a proposal or quote on the table for the aggregation of your loans.

Do you want expert advice? Fully tailored to your financial situation? Contact the Good Finance today! We attach great importance to your needs and expectations: we understand them better than anyone. That is why we advise you and assist you in your search for the most economical solution. As long as it benefits you. Because with the right approach, merging loans becomes a piece of cake and more transparent than ever. So don’t hesitate and immediately take advantage of the many benefits that this financial strategy offers for your loans. Request your proposal!

Whether all this is possible with any loan? It is important to remember that every financial institution has certain conditions. Nevertheless, we at the Good Finance assure you of a fair approach, in which transparent communication is evident. Simply because we want you to get the most out of your finances!

What if you do nothing?

You currently have one or more credits in progress. If you decide to just take out a new one, you may get a long list of loans. And there are certain risks involved:

  • Your monthly costs increase, which you naturally want to avoid
  • You can perfectly – and that is also the danger – withdraw previous repayments of a revolving loan. Result: you will pay more interest and the amount due will continue to rise
  • Rates, interests, modalities and others differ per credit. Sometimes the main features are so different that you lose the structure