Finding the right property is not easy. Especially first home buyers make the biggest mistakes, which can cost them millions later. What to consider when buying your first property?
1. Learn about your neighborhood
No matter where you live your life. Once you have chosen the area you want to live in, get to know it well. Ask your friends, the people who live there. In your ads, look at how much a property is right for you in that location.
2. What can you afford?
Once you have the area and know how much a property is right for you, then consider your financial potential. If you think you have to make too much trade-offs, you may want to move elsewhere.
3. Calculate how much your new apartment will cost
Many people believe when buying their first home or home that they will save on moving out of the sublease. In contrast, maintaining a private home can be much more expensive than renting. Anything wrong in a private apartment is our expense, we have to pay the mechanics and the renovation as well. In addition, we will think of making the hands more often, which will also cost money. This is accompanied by a loan installment. Do not spend more than 30% of your salary on your apartment monthly.
4. Ask your bank for a prior credit assessment
It is good to know what options you have at the very beginning of your home tour. Check our calculator to find out which loan is best for you and inquire now. After looking at your property, it may be worth asking for a prior credit assessment before you bid, so you can be sure you will get the credit you need.
5. Assess the risks
Since the crisis, we know how much house prices can plummet year after year. Even if the low point seems to be coming, it is worth considering what if prices continue to fall. If you buy a home on a loan, you also know the risks involved. It is worth preparing for even greater interest rate fluctuations in the future.
6. Calculate other costs
There is a tax of at least 2 percent of the property, but above 35 years or not the first home is 4 percent. But you still have to pay the attorney’s, brokerage, and not insignificant transaction fees. Taking out a loan comes with property valuation, disbursement, notary fees and much more, which is only refunded by the bank.
7. Give time to find the right property
Experience has shown that it takes at least 3 months to find a suitable home. In addition, you have to look at dozens of them. The main reason for this is that sellers are not always at the forefront of the situation and the ads are often incomplete or incorrectly filled out. A good realtor, though harder to find than a white raven, can help you navigate the chaos.
But it can help a lot to find the right apartment or house in time. So, if you still have someone who knows your needs, then take the opportunity.