Housing and Real Estate

Financing for Entrepreneurs
If one wishes to enter the world of entrepreneurs, one of the biggest obstacles you may have is money, because according to personal business you want to put, the initial capital is usually around figures not available worldwide.

And if not has the initial capital needed to launch an entrepreneurial project, you can use different routes. Ideally, this money comes through a family member or friend, but if this is not possible, one may resort to financial institutions and borrow money.

Just this last form is that many people rely upon to realize a project. If you are in the same condition, then you leave a list of different organizations where they can go for funding for your personal business.

But before turning to these entities, it is necessary to clarify that there are several types of credit institutions and to apply. However, the crises and economic downturns, we must ensure good of all the details of the credits, because the crisis has tightened the conditions thereof.
Financial institutions

ICO. The Official Credit Institute offers various forms of financing according to the characteristics of the company or entrepreneur. The most prominent are: ICO Entrepreneurs 2010, ICO ICO Investment International 2010 and 2010. In addition, you can find funding for social projects and differentiated for the sectors of environment, innovation and knowledge.

Bancaja. Here you can find the line of financing for entrepreneurs called Financial Settlement, which is aimed at young people between 18 and 35, whose projects in companies must be less than 42 months. There is also the first company funding for youth up to 26 years, and seniors over 26.

Avalmadrid. This is a mutual guarantee company that provides financing through guarantee. It is attached to the Community of Madrid and has three lines for entrepreneurs: one for women, another for immigrants and one for entrepreneurs in general. And for self-employed and SMEs that are placed on activities within the retail, hospitality, technological innovation and internationalization can apply for financial lines reclaimed.

The public sees the reality of residential real estate market every day. The profile of the buyer is one that has a lower risk of unemployment and meets minimum requirements in its repayment capacity. This adjustment, which is occurring in the residential, is not as clear in the tertiary market.

The tertiary product has not been set either speed or depth as it has done residential. In addition, for the tertiary sector (hotels, offices, shopping centers), the funding is gone, is only possible subrogation.

There is a wide gap between the expected return of international investors and the patrimonial Spanish are willing to engage with their real estate assets. Now, a new variable, income expectations, binds to the equation when evaluating the properties.

The spread between risk-free assets and the rates demanded by investors has been increasing in recent months, so the fall in rates has not meant a reduction of fees. Currently, there are levels of 200-250 basis points above the yield of 10-year bond.

This differential is justified by the risk of real estate compared to other sectors, but also by the risk premium that Spain suffers compared to other of Europe. The perception that children have negative expectations of the Spanish economy abroad results in that international investors are discounting the worst possible scenarios.

But do not forget that in a global economy, the money goes where it has greater expected returns with lower risk, not that we are not fashionable, but there are better places to invest than Spain because there is already setting has occurred.

(more…)