Getting ready to buy a home
It is everyone’s dream to finally settle down and buy either a house or an apartment. It is apparent that this task is not an easy one and requires not only a lump of money but also thorough preparation and swift decision making. There are a few things you need to clarify before going out and start looking for a place to spend your money on.
You need to know what the average price for an apartment of a certain size is. Once you know how big of a flat you are going to buy then you need to know which part of your town you want to live in. This is often overlooked by people and it usually turns out to be a huge mistake. If you are going to inhabit the place all by yourself then you can make a few compromises and go with certain areas which are otherwise not suitable for a young family. For example you might end up in a neighbourhood without many green areas or kindergartens and it will be completely fine if you do not have kids. But if this is not the case and you have a young family or at least plan to have children soon then you are better off making sure you have plenty of schools around you. You also want a peaceful area where your kid can safely play and walk. However, these sweet neighbourhoods usually have more expensive homes. Your budget matters and you need to take all things into account.
Don’t underestimate any aspect of the process
The financial part is essential and before you start booking removal companies for your new home think about how you will pay for the whole thing. People of the mid-class rarely have the whole sum upfront and even if they do it is perhaps not very smart to just give it away all at once. So this usually means that you will need to have your home mortgaged. Nowadays the economies in Europe are Ina better condition and most banks will agree to receive just 15% of the price upfront. This means that if your price is X, you will need to have about 15% of X in cash right now.
But then what scares most people are the monthly instalments and the instalments are actually not the problem but the length of the period in question. Most loans like that take place for over 10-15 years. It does sound scary but it actually isn’t. Here’s why: inflation.
Money get cheaper by the second. With time your salary will surely grow no matter where you work. Sure, your expenses also increase but your income is not likely going down as well. But your monthly instalments remain the same throughout the whole period of the loan. This means that in 10 years this loan is not likely to bother you at all because you should earn enough money every month in order to regularly cover the instalment. So the right thing to do here is to go for a long term loan. Short term loans require you to part ways with large sums almost immediately. IF you simply pay back your loan for 20 years this would mean that you have enough money each month for emergencies and other sudden expenses. In case you find yourself in a situation with more money you can always go to the bank and re-negotiate the terms of your loan. You can go ahead and cover a large portion of it all at once in case you want it to be over sooner rather than later. You also have the freedom of increasing the amount of your monthly instalments if you want to pay it back quicker. The bank system is pretty flexible and the competition is fierce. This forces banks to give clients better deals and you should take advantage of the discounts you are offered.
Be sure what sort of flat you are going to be selecting
Next you should think about the nature of your flat and more specifically the construction type of the building. Brick buildings are usually the way to go but they will end up costing more. Panel construction lacks sound proofing and might be a little colder during the winter but it will give you a way cheaper price. Now if you are not looking to buy a place to live in but just to invest then things change dramatically. Many people buy apartments, renovate them and then re-sell them for a huge profit. Well we are not sure how huge exactly your profit will be but if you do better than breaking even then you are in good shape. You need to take some things into account:
- The condition of the market
Just make sure you do not spend a lot of time on it. You might want to hire professional help with the construction works. You can get companies to even do waste cleaning after the project is complete. You should opt for every offer which allows you to save money.
And finally get ready for a lot of phone calls and browsing many ads. Finding the perfect apartment is not an easy task because this is where you are supposed to live if not for the rest of your life, at least for the better part of it. This is why you need extra amounts of patience. Do not rush as this decision is big. Try not to commit to anything you are unsure about. Be careful where you sign and seek constant support by professionals. Using the Internet is an invaluable advantage. You can see plenty of feedback there and also photos of the places prior to actually visiting them. Get ready to build your life in a home of your own.