Tips For A Safe House Buying
After years living in a rented apartment, do you ever think of a housing purchase? The benefits are obvious: the monthly rental amounts do not go to the unknown, but you pay for your own four walls. The purchase of a residential property is thus a secure capital and value investment and serves you as an old-age pension. You can find out which aspects you should include in your considerations.
Financial aspects of housing purchase
When the money on your saving account is not enough to buy an apartment, this means you need a credit. If you have savings – so-called “equity” – then this reduces the loan amount. For an apartment with a price of 100,000 dollars and 20,000 dollars of existing equity, only a credit of 80,000 is necessary. However, equity does not only have the advantage that it reduces your loan size, but the duration of the loan is also shorter than that of high credit.
However, the mortgage interest must also be paid as well. Before deciding to buy a property, you should get an overview of how much money is available to you. List all monthly income and expenses, and then calculate how much money is left. You can count on your current monthly rent because you will no longer have to pay this as a property owner. The result is the sum that you can use to pay the mortgage.
Since you will likely need your money pay for your mortgage for an extended period, it is sensible that you should be concerned about your financial security when buying a home. Is your job safe – and how should you comply if you lose your job? You also have to pay the interest rates during unemployment – if you cannot overcome this problem, the property is at risk of an emergency sale or foreclosure sale.
You can get offers from various banks and credit institutions to find the best financing model for you. The basis for this is your information on the planned purchase as well as the detailed presentation of your financial situation.
If your retirement time is soon to come, you should consider it thoroughly about the housing purchase. Even if the monthly pension is likely to be less than the income from the regular job, the mortgage rates remain the same. So you have to pay the same amount of mortgage with less revenue.
Anyone who decides to buy a property at the age of more than 50 years should have as much equity as possible. This ensures short run times and low credit rates, or both. It is ideal if you have already paid off your home loan for retirement: Then the biggest cost factors in old age, energy, telecommunications and house money remain.
The biggest financial matter besides the credit rates and the energy and telecommunications costs is the house expenses, which you should not underestimate. This is made up of the costs for:
- Caretaker and house management
- building insurance
- waste disposal
- and other items.
From the house expenses, you may also need the reserves for house maintenance and repairs. In your own apartment, you will pay for repair costs yourself. If the maintenance reserves are not sufficient for the repairs, special charges may apply.
The location of the apartment
The location – both within the neighbourhood and within the city – is an important aspect in choosing an apartment.
When you are in the apartment, pay attention to these things:
- In the attic, it can be too hot or too cold depending on the season.
- Ground-floor apartments are often dark. Look if a terrace or balcony belongs to the apartment. These provide you with daylight and fresh air.
- In some multi-family houses, there are three apartments on one floor. When you look at the middle apartment, pay attention to noise from the neighbouring apartments on the right, left, up and down.
From the windows of your potential apartment, you can see a wide undeveloped landscape? Then you also want to know whether this beautiful view is also guaranteed in the future. To do so, go to the Office of Urban Development or the Building Office. Here you can get information about the construction measures planned for the neighbourhood. The development plans of the municipalities state can give you an insight whether in the future high-rise buildings, industrial construction or other buildings will change the environment and thus also your prospect.
Critically evaluate the surroundings of the apartment you have chosen:
- Is there a good infrastructure for shopping, leisure activities and, if necessary, facilities for children or seniors?
- Do the buildings in the area make a good impression and does the neighbourhood also meet your expectations on the social level?
- How are the transport services (also at the weekend) and the parking situation?
Age and condition of the house and accommodation
It makes a big difference whether you opt for an apartment in an existing property or a new building. As new buildings are sold even before the grand opening ceremony, you can realise your individual wishes at such a property. For example, the architect fits your liking the size and layout of the spaces in or give suggestions to extras such as elevator or laundry room. This is usually not possible in an old residential apartment.
Remember that an apartment in the old building can entail high costs. Therefore, please submit logs of the owner meetings as well as the business plans of the previous years. These show which renovation measures are planned, which you have to co-finance as owner. These include, for example, retrofitting an elevator installation, a roof renewal or energy-saving renovation projects. Also, make sure that the previous owner does not have an additional cost statement open. When you conclude a purchase agreement, you are standing for it.
If you have the opportunity to be accompanied by a craftsman to the apartment inspection. He can assess the value and condition of the fixtures and fittings, thereby affecting the price negotiations in your favour. Ask him beforehand:
to check the shared inclined walls, terraces and balconies at the specified square footage
heating installations and a close look at the energy certificate.
Checklist for housing purchase
- Clear cost installation, determine equity
- Request and compare offers from different credit institutions
- Conditions of the building
- consider mortgage payments and house funds.
Hint: Take the camera with you! Based on the images to compare different residential locations is easier. You should also check:
- Garage, parking space, parking situation
- top, roof
- Balcony, Terrace
- House floor, staircase
- Mailbox and bell system
- Elevator (if any)
In the interior visit these things are important:
- Close the door, balcony or patio door and windows, do they fit in well? You should also check the awnings or shutters, do they safe as well?
- Are walls, ceilings and floors free of moisture and mould?
- Do the sanitary facilities work properly?
- Does the apartment have enough sockets and do they work?
- What is the condition of the fixtures?
- Is the indicated square meter matched with the documents?
- Does the room layout meet your needs?
Is the apartment bright enough for you?