Raising The Key Interest Rate 2011

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Basically raising policy rates by the ECB is planned effects an interest rate increase on lease and mortgage lending for the year 2011, however you should see this not too tight and only right not dramatize. This increase was finally originally planned, for the first quarter of 2011 as is now already spoken of a shift on the second quarter. If and when there will be an increase in the federal funds interest rate really is still not really clear and a concrete date for such an increase is not also. All of this is soothing thoughts seem quite realistic, because if there really will be a rate hike, so this is likely to be very low. In what extent then really be expected to impact on the lease and a possible construction financing remains also to be seen.

Basically but also no fear-mongering should be carried out, because a very small rate hike will not affect as well as the average homebuyers. Here are before all large projects are concerned, but in addition to the regular construction financing within the EU or in the conventional way still other sources of money and skills available are which, so that also here raising the key interest rate to a limited extent should rather play a subordinate role. In this budget amount is a construction and investment projects regularly in the area of risk capital financing and or or about foreign sources of finance, whose influence and conditions by the interest rate increase in the EC regularly not or only slightly touched and influenced. However, should still protect themselves builders in private and binding enshrine once achieved good condition contracted on several years. Is this done, so a rate hike can represent more no danger, then the amount of the interest rate increase is also irrelevant. A first agreement with regard to the proposed restructuring should also already and or or follow-on financing are fixed in writing, so that a change of Bank is easily possible if another institution should offer better terms. Generally can be distinguished in this respect but also private real estate and investment properties. In terms of the private real estate, more or less hands are tied to the owner.

When plant objects, there is the possibility to disclose such raising of the federal funds interest rate if he should be doing and has impact on the own credit conditions using a regard to the tenants. In this case, the owner would continue unencumbered and gets not even to feel such an interest rate increase. No reason to panic as well as exclusively private real estate owners, because interest costs can be made tax in most cases. About the appropriate ways and or or so already you should speak conditions prior to the conclusion of the credit agreement with the own tax adviser. Adam Botschek

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