## Brick Home Costs } Loans

Nowadays, real estate prices are very high and people are starting to think about the cost of building a new home when compared to the total cost of a used home. And that is why I will try today to understand how the construction of a brick house could cost, at least in terms of material prices. First of all, you have to understand what house will be needed and take a 300 square meter house on two floors, where the height of the house will be 7 meters and width 10 meters. If we know that one brick costs 50 cents and one brick is about 250 mm x 125 mm x 88 mm. Then we can make calculations to find out how much brick will be needed and how much it would cost. It should also be remembered that the price of one brick is about 20 cents if they are bought in bulk.

If one wall is 10 meters long then there will be 40 bricks, but all 4 walls of the house will need 160 bricks for just one layer. If you look further at the height, then about 90 meters of brick will be at 8 meters. But the house will also have to be divided into at least 4 parts, then two more walls will have to be placed 10 meters long and 8 meters high. Total Brick Count:

• One wall – 40 * 90 = 3600
• All walls – 3600 * 6 = 21600

So if it had no windows and doors, it would cost 21 thousand bricks, which would cost around 4.5 thousand Euros, which seems very little. Of course, you will need at least 4 windows and 2 doors in each wall, each costing about 200 Euros, which will cost another 4000 Euros, but you should also remember about the cement that will be needed for brick joining. And then it happens that the house frame can be built with about 10 thousand Euro materials, but there is still work to be done, which will cost another 3,000 Euro.

In addition, indoor work, outdoor work, roofing, electricity, sewerage and water supply, smoke detectors for safety and the Internet are needed. The house will also need heat supply, gutters, chimney floors, ceilings and equipment, and ultimately the whole sum will come to trial. And, even though these construction works will take several years and all the time workers will have to pay wages for one house, the cost of building a 70 to 100 thousand euro is roughly the same as the average house price in the used property market.

In any case, although it is possible to build a new house, without the knowledgeable specialists, architects, and big contacts, it will not be possible to do it cheap and only if you are ready to build a home business, can it be done and cut all those costs down to those that it is possible to make a profit. But for a single home building then it is better to take a mortgage loan and buy a ready one that will be much easier and cheaper.

## Can The Savings Be Too Big?

Everyone has to know how to make free money savings in order to secure a stable financial situation. Savings serve both as a safety cushion in financial distress, and also help you manage your financial flow more easily, because you don’t have to worry about losing money at some point. In terms of how large these savings should be, usually only the minimum savings are mentioned, but is there a maximum? Can savings in general be too big and should savings continue forever?

There are a lot of theories about how big the free money should be. The most popular view is that savings should reach at least three average monthly wages. Today’s financial experts and economists mention larger amounts, pointing out that the economy is now more volatile and the price level has increased significantly. In any case, in most cases, only the minimum amount of savings that could be sufficient to deal with various potential financial problems is mentioned. If we look from that point of view, it really would make no sense to set the ceiling because security can never be too much. We never know what financial crunches we may face in the future, so the more money we charge, the better.

## Can savings in general be too big and should savings continue forever?

On the other hand, large savings are not desirable either for the savers themselves or for the economy as a whole. This money is simply stored at home, in a bank account or anywhere else, and is not put into action. It loses its value over time and does not provide any economic contribution without coming into circulation. Money that is circulating creates new money, but money that is simply stored somewhere is meaningless from an economic point of view. However, it should not be possible to create huge savings, but it does not mean that after the savings fund has been set up, your money has to be pushed for various unnecessary things just because the savings are already big.

Once the savings fund is large enough to make you feel comfortable and protected against most of the potential financial problems that need to be addressed urgently, you need to start thinking about other financial goals. Money needs to be channeled into goals such as saving life insurance, creating a private pension background, and so on. It is also possible to invest money in financial and securities markets and other investment objects, getting more money with your capital, and you will also invest when you need financing. True, many types of investment have low liquidity or the ability to turn them into cash. For example, if you are investing in real estate, turning that property into cash could be a problem, and you may have to lose some of your property value, but still you can turn your investment into cash and use it when you need it. It should also be mentioned that investments provide other forms of financial security. For example, income streams are diversified and a person is protected when his or her basic income stream suddenly fades or falls. The money invested is also protected against currency devaluation or other economic problems that may affect free money.

All in all, money can never be too much, but if we talk about free money savings, then they should set a certain limit. Such savings are necessary because they can protect you when you need money urgently. Such a guarantee will not be provided by investment, nor by other forms of accumulated capital, as it does not have free, immediate access, but it should be understood that free money savings are only one part of total financial stability. It has to be done by a variety of techniques, including investment, rather than simply collecting money.

## Amendments to the Law on Fast Credit Penalty Interest

As is well known, quick loans are one of the fastest growing industries in Latvia and elsewhere in the European Union, but despite this, many creditors are forced to repay disproportionately large amounts of debt when no underlying obligations have been paid over time.

Until 2014, fast credit issuers can collect high interest on their own penalty both for their own penalty and for interest on the initial payment for the same offense. These percentages may even violate the principal amount of the loan and may increase several times after certain deadlines, which for people who are unable to repay the loan can outgrow uncontrollable credit liabilities.

## Credit Penalty Interest

It is precisely because of these cases that the Saeima announced on 14 February 2013 a draft law on changes in civil law that would prevent non-bank creditors from penalizing borrowers. This bill was approved at first reading and also on 4 April at second reading with minor changes. And at the final third reading, this bill came on June 20, when it was approved and will come into force on 1 January 2014.

This law amendment, which you can view here , states that from 2014 onwards, the penalty will be determined as a lump sum or a non-recurring value that will not be repeated and may not be repeated for the same contract . This amount may be increasing, but in total only 10% of the principal amount of the debt or the total amount of liabilities.

Furthermore, this bill stipulates that if a debtor has paid a part of his debt, this money is first used to pay off interest payments, then to repay the principal amount of the loan and only then to pay the penalty in order to prevent the debtor from paying the penalty, but the principal remains unchanged and penalty interest is still rising!

In general, this bill is directly targeted at non-bank credit issuers and will in some way limit them so that they can no longer impose disproportionately high interest payments that will give us, as borrowers, greater confidence that we will be able to repay those debts.

What is still to be known is that, from the entry into force of the law, all contracts will not be immediately covered by these rules and will only be imposed on new contracts, but the previous contracts themselves will have the right to apply or not to apply this practice over a period of 3 years, which will be a transitional period.

## Business Loan – The mortgage to Finance the Creation of a Business

The creation of a business implies the presence of substantial financial means, which is not always the case for young entrepreneurs.

Indeed, the launch of a new SME is not only with ingenious ideas and a good profile of creator, but it is especially necessary to raise the necessary funds to pay the entrance fee, ask the intervention an expert to do a market study, build a legal file, find a place to rent or buy, invest in equipment, etc.

In the absence of own funds for personal contribution, the project promoter often finds it difficult to find suitable credit. But what about the mortgage loan to finance the creation of a business?

## The mortgage loan: how does it work?

The mortgage is the solution you need for the creation of your business if you own real estate or land.

The latter will be considered as guaranteed by the bank which will grant you a loan at 50% or 80% of the value of the property, the amount of which will be determined according to the total value of the property put under mortgage, that it is act of a house, apartment or rental property that you own.

With mortgage credit, you have the opportunity to negotiate the terms of the contract by highlighting your profitable business sector and your forecasts in terms of financial results, by opting for a fixed or variable interest rate.

Although the procedure to be followed is more or less complicated with the mortgage loan intended to finance the creation of a company, it represents a reliable guarantee for the bank which will be more inclined to reduce the interest rate of the loan because it can recover his money with the sale of the property in case of non-compliance with the repayment contract.

However, as a borrower, you must provide notary fees and registration fees to the custodian when providing the guarantee, as well as the costs of release when your company has been able to repay everything.

And most importantly, you will have to ask for the consent of your spouse if you mortgage a common good to finance the launch of your business.

## Other financing solutions for business creation

In addition to the mortgage loan, there are other ways to finance the creation of a business , including the business start-up loan offered by us, which gives you access to a sum of between € 2,000 and € 7,000, repayable out of 5 years and that will be used to cover the start up costs of your business.

You also have the loans of honor and other devices of help to the creators and the system of “Love money” provided by the associates or the close families.