Content ID – Buying a house is possible, if you know how. Achieving it requires a certain dose of patience, determination and, if possible, advice. But above all, common sense.
Buying a house is the primary goal of human beings who have been with children. But if you know the path that separates you from your destiny, arriving will be easier. And sure. Buying a house is for many people the most important investment of their life . A step that inevitably determines and conditions our life in the short, medium and long term.
For some an adventure, for others a dream and for the vast majority, an overwhelming experience that can destabilize even the most foreseen . Doubt is not only normal, but also healthy. Therefore, in the seemingly impregnable financial jungle, knowing is power. Knowing the process and anticipating each phase is vital so that the story of the sale has a happy outcome.
In order not to get lost on the road, the essential thing is to adjust to the possibilities. And if a manager accompanies you on the trip , much better, then buying is not an easy decision . It is the decision: having the details, taking advantage of the opportunities and understanding the fine print is essential to reduce headaches and reach the goal smoothly.
The most profitable – and healthy – is to be able to have at least 20% savings, to meet the purchase
Meanwhile, ask yourself these questions:
I can buy?
They are not good times for rent. At least in the big cities. The purchase, however, continues to rise favored by low interest rates that seem to have come to stay. Is it the best time to buy? May. But the question must be another: is it also your best moment? Knowing the financial situation of the family unit is the first step sine qua non.
Buying requires prudence and analytical skills that help us decide at a time when doubt will be the common tonic. Not only must we take into account current income and immediate needs, but also foresee future expenses that may diminish the entry of income (car, studies, children …).
Is This the house of my dreams?
Distribution, location, closest services … As far as possible, choose a house that, in addition to liking you, has the ability to revalue itself in the future (and be the dream house of others). Know the property for which you are also interested ‘inside’.
Go to the Land Registry or Cadastre to find out if you have financial burdens or possible property problems. It is also essential to know its real value before setting the purchase price, because when we request a mortgage it is estimated based on its real value , not the agreement.
Mortgage: how much should I allocate?
Most experts indicate 35% of the maximum percentage of salary or income that should be used to finance a house or mortgage . Thus the health of the domestic economy does not suffer and can cope with possible contingencies and recurring expenses. Once you know the maximum amount you can allocate to the purchase, make sure that the value of the property fits your financial possibilities (and not vice versa).
The majority of experts indicate in 35% the maximum percentage of the salary or income that should be allocated to the financing of a house
What type of mortgage do I choose?
It is time to study the mortgage market in depth to identify the credit that best suits your needs. Having overcome the fever of the ‘variable rate’, a surge of foresight is increasingly encouraging to buy mortgages at a fixed rate . Buyers do not want more scares and are increasingly opting for this modality to protect themselves from possible increases in the Euribor, which, although negative, already shows some upward thrust.
How much does it cost to buy?
Indeed, buying costs money. Specifically, the fixed price of the property plus 12% or 13% more derived from purchase taxes and other expenses . Which? In the case of second-hand housing, for example, we must have the Property Transfer Tax (ITP). In new housing we will add 10% VAT .
Another expense to take into account are the notary fees, necessary for the preparation of the deed and, with exceptions, are assumed by the buyer. We must also have the costs of Registration in the Property Registry.
Buyers are increasingly opting for fixed rates
Do you have savings
A fundamental aspect: your savings. In general, the loan that you can access when you go to the bank must not exceed 80% of the value of the property . There are exceptions, credits and financial watermarks that may allow you to exceed this percentage.
However, the most profitable – and healthy – is to be able to have at least 20% savings , to meet the purchase. Asking for more money (which we don’t have) will imply assuming greater debt and greater risk. The more savings, the lower the interest.
And now that? The earnest contract
The pre-contract document protects the rights of the buyer and the seller, and expresses the firm will of both to close the agreement on the property. It is not mandatory, but it is really useful when the buyer cannot make the purchase immediately (for example, if he is waiting for a mortgage loan). However, it shields the interest of the seller , as well as conditions of sale and the price , among others.
Scriptures: end of the journey
The contract of sale is the mother of all contracts. A document that must be the real and reliable reflection of all the aspects and details agreed upon : price, delivery date, validity of the contract, possible charges, proof of payment of the Property Tax (IBI) and tax obligations arising from the sale.
In processes such as buying a home in general, and in ‘paperwork’ in particular, having professional advice is a guarantee of tranquility . The manager’s role is essential to translate and help us understand technical aspects that could otherwise escape and create an unnecessary headache. Read and signed before a notary, it is necessary to register the contract in the Property Registry , the end of the journey of an adventure that just begins at that moment.
Buying a house is not an exact science. Quite the contrary, its nature is complex. There are as many buying processes as properties and owners. Cases and cases in which, sometimes, misinformation and ignorance are mixed. Knowing what to expect during the purchase process is essential to not despair: what to do and what not to do, in short. If we follow certain guidelines we will make sure to enjoy the new home in the best conditions .