You like a property, but you can't afford it? Then you are like many other people.
Sure, there are banks that offer real estate financing. But - especially in Spain - they only give money to customers who actually don't need any. The reason is the affordability calculation. What is that?
With the affordability calculation, the bank tries to determine whether you are always able to service the loan at any time.
However, this view of things often falls short. Here's an example:
You buy a property for vacation rental through AirBNB. You generate rental income of over twenty thousand euros per year. You know this because the property you buy generates exactly and provably this rental income. This calculation does not take into account that you will renovate the property fundamentally and thus will certainly generate a higher rental income.
The bank removes the complete rental income from your calculation. There is no affordability. You cannot buy the property. Unless you finance intelligently. Then not only the purchase of the property is financed, but also the renovation.
Want to learn more?
Register now for my webinar on real estate financing in Spain in. Here you will learn how to expand your financial scope by 150% with intelligent funding. (You will receive registration link after signing up to this blog!).