1. Your purchase plan, correctly you will prepare it
The first rule to follow before buying a home is not to neglect the preparation stage of your project. This will save you many hours of unnecessary research, unsuitable accommodation visits.
Time is money! Ask yourself a few minutes. Take something to rate and start by listing the criteria for the property you are looking for. Then set your overall budget for this acquisition.
The more accurate you are in this initial phase, the more time you will save later. Of course, you will always be able to refine these criteria over the days (and your research). https://www.jagahh.com/
2. Real estate news, you’ll study
Like any market, the real estate sector has to adapt to frequent changes. New aid, tax changes, price and tax fluctuations, new regulations, etc. There are many things that can shape your purchase.
After compiling an initial inventory of the property and your budget, the second step will be to inform you about the current conditions of the real estate market and to update your knowledge with the latest changes in force.
For this, you can find our latest articles on real estate news. In particular, you will discover a summary of the main changes for real estate in 2021.
3. Your local real estate market, you will analyze
The general press has allowed you to get an overall picture of the real estate market, but there are thousands of different real estate markets.
It is therefore essential to complete your project preparation with a comprehensive study of your local real estate market. This involves finding accurate information on:
- Your neighbourhood or city,
- The type of property sought,
- Prices for this type of property in your research sector
You can also browse real estate ad sites to get an idea of the prices charged by the sellers.
Beware, you will find apartments and houses at market prices as well as goods that will never sell at such rates. Use tools like Castorus to learn more about goods that don’t sell.
4. For the long term, you will buy
A real estate purchase becomes more financially attractive than a rental until after living there for several years. And yes, there are many acquisition costs to be depreciated before a purchase becomes profitable.
In times of rising prices, his property increases in value. A 5-year conservation can therefore be enough to win. On the other hand, in times of stability or falling prices, delays can be considerably longer. Expect a minimum of 7 or 8 years in these cases.
A short-term real estate purchase will present very high cost risks, except in rare situations. To maximize your chances of success of your project, choose the purchase over the long term.
To find out how many years you need to keep your apartment to earn money compared to renting the same property, you can do simulations purchase or rental.
5. Your time, you will take it
Patience should be one of the main qualities you will need to demonstrate during your real estate acquisition project. You don’t buy an apartment like you buy a shirt.
You will commit to large sums of money and most likely for several years of repayment of a home loan. So it’s not something you do lightly. The consequences of a bad choice can be very expensive!
Follow the saying: “Better to miss a good deal than to make a bad one” and you can succeed your project with serenity.
In the same way, you don’t buy a default property. If nothing matches your budget needs, it’s best to delay your project over time and wait for other goods to come on the market or your budget to increase.
6. During visits, you will question
A property is purchased in the state. That is, once you have signed the deed of sale, you will no longer be able to turn against the seller. If there are disadvantages on which you have not been sufficiently vigilant, you will have to assume them (except for hidden defects).
When you like a property and meets the majority of your criteria, always make several visits and take as much information as possible before committing.
Ask all the necessary questions and, if necessary, call on qualified professionals for independent advice on specific points.
Electricity, insulation, heating, minutes of condominium general meetings, amount of local taxes, etc. The list of items to check is long…
7. The price of the house, you will negotiate it
Gone are the days when a property sold in a few hours and without negotiation. Except in rare cases where a dwelling is put at a price well below the market, the sales times range from a few days to several months, or even years for sellers who camp on an unsuitable price.
The purchase price of the house or apartment will determine almost all other costs you will have to pay for this acquisition.
If there is only one thing to negotiate when you buy, it is the price of the house. To better understand the impact of the price, check out this article which shows thata 10% price drop reduces the total cost by 20%.
The financial success of your real estate purchase therefore depends, in large part, on the price at which you will pay your property.
When some people buy without negotiating or with small drops, others get drops of 10, 15 or even 20%. To put all the chances on your side during the negotiation, it is essential to know the prices of your local real estate market and to be ready to miss the deal if it is not interesting enough.
8. All the ancillary costs, you will not neglect them
When you buy a property, you have to pay two different types of fees in addition to the price of the home:
Acquisition costs from the time of purchase: notary fees, real estate agency fees, application fees for financing, etc.
Use fees as an owner: annual property tax, condo or maintenance/renovation of your home, etc.
Many buyers overlook the cost of all these costs over time. To avoid future financial difficulties, find out more about the amount of each of these charges.
You will find a detailed example in our article on “all costs related to a real estate purchase”.
9. In a short period of time, you will borrow
Once you have minimized the amount you need to borrow by negotiating the purchase price, you should remain vigilant on this point: the length of time your home loan is paid off.
The longer the term, the more each euro borrowed will cost you interest (and loan insurance). In order not to blow up the cost of your loan interest, it is in your best interest to minimize the duration of your loan.
To minimize this loan term, you must choose the best real estate credit on the market, the one that will allow you to pay less interest and thus have the shortest repayment period for the same monthly payment.
10. Your funding, you will optimize it
The last rule to be followed to make a successful purchase of your property is to optimize the financing of your apartment or your home.
If you don’t pay attention, the cost of financing may be higher than the purchase price of your home! After looking for the best value for your property, it would be a shame to ruin all your efforts by neglecting the quality of your financing.
However, by following simple rules, it is possible to [reduce the cost of its real estate financing by 20%.