Archive June, 2010

(II) The reverse mortgage today

28 June, 2010 No Comments

Once the general description of what legally constitutes a reverse mortgage, I would like to get deeper on this subject from the practice.

In fact, we are trying to see the possibility that home ownership to be a source of income for retirement, because the properties are usually one of the main assets for people during their retirement age.

This type of mortgage assures the owner will receive a monthly amount in exchange for his home, keeping it as a place of residence to his death.

Normally, is possible to earn a starting spot sum, to pay the expenses resulting from the completion of the contract and the reforms that have to do, etc. Since that time, periodic amounts are charged; depending on the financial entity, they can reach 90% of the initial appraisal.

The operation can be canceled at any time, but typically would receive the income until the death of the holder, when the heirs will receive the property and their loads. This leads, today, that some reverse mortgages are being made on second homes, as a way to dispose of apartments that are not selling in the market.

On the other hand, the initial idea of a reverse mortgage, which originated about the year 2005, was to have a high valuation of the property and thus receive a higher monthly income. But now, valuations are lower, that’s why the income that can be achieved with the same property are much lower than those obtained earlier, due to a fall of the housing market.

There is another element that can create uncertainty for the bank to make reverse mortgage: life expectancy is now set to reach the 80 years in many cases. The bank wants to make sure income, which adds costs to the operation to avoid reaching what the financial market is called “negative equity”, which means that the debt exceeds the property value.

To eliminate the obstacles that appear to have the reverse mortgage at the moment, there is the idea that in Spain, “who has an apartment has a treasure”. Therefore, older people think well before taking a reverse mortgage to offset income his small pension. Furthermore, the sons are not yet aware that this house belongs to their parents, and so they are not obliged to let them it in heritance.

A house without walls in the jungle of Costa Rica

11 June, 2010 No Comments

We find in Costa Rica this unique home without walls.

Costa Rica is one of the countries of the world that has a higher natural variety.

It has a very different climate in the Pacific coast and the Caribbean, which allows the existence of an great fauna and flora diversity.

I can not imagine how it should be living in this house without walls … in the middle of a tropical forest (Costa Rica has 35 national parks), where wildlife can roam freely at home in every room, lounge, kitchen, bathrooms, … !!

Obviously, with the slogan “Costa Rica: No artificial ingredients”, this house would be the most relevant example.

It is being in touch with nature at all times, it is something unique … this is allowed by the mild weather and the safety of the area.

Costa Rica is a jewel of global environmental movement, which affects a greater increase in tourism in the country. It’s a real country, very nice to be explored.

Sometimes it has been referred Costa Rica to be the Switzerland of Central America, for its natural beauty, comfortable lifestyle and peaceful democracy.

So this a very desirable country to invest in property.