Buying a house or apartment is an important decision. However, there is a lot of information to know to avoid disappointment. Here are the 8 mistakes to avoid when buying real estate to help you find the home of your dreams and succeed in your investment.
Buying a Property When You Are Too Indebted
The first mistake to avoid when buying real estate is investing when your financial situation is unhealthy. Indeed, it is often thought that borrowing capacity can never exceed 33%, but this safeguard is only valid for some. It is scrupulously respected for modest incomes, but comfortable salaries can see this ceiling high at 35% or even 40%. However, avoiding getting to this point is preferable to maintain flexibility in managing your finances. It is therefore, better to clean up your budget and postpone your purchase project rather than persevere at the risk of putting yourself in an uncomfortable situation.
Poorly Define Your Purchase Project
Before looking for a property, it is essential to define your purchase project. To do this, ask yourself the following questions:
- What surface do I need?
- How many people will live in this house?
- What are the points on which I will not compromise (number of rooms, presence of a garden, etc.)?
In which municipalities do I want to settle?
Thus, you can determine the amount to borrow for a real estate purchase to meet your needs. You can then consult several banks to obtain borrowing simulations. You can also find out about the help available to you (zero-rate loan, Pinel device) to finance your purchase.
Don’t Stick to Your Budget
The price of a property is a central element in the housing search. However, sometimes we visit housing a little above the established budget, thinking we can negotiate the price. But when the crush is there, and the owners refuse to lower the value of their property, it is tempting to review its financing and opt for higher monthly payments. Be careful. However, this requires many sacrifices over several years and a budget that leaves no room for maneuver.
Neglecting the Importance of Intake
Another mistake to avoid when buying real estate: improvise. This type of investment is prepared many years in advance to constitute a nest egg that will serve as a contribution. The greater these savings, the more you will have an advantage in competition between several buyers for the same property. A contribution representing 10% of the price of a home is a minimum.
Do Not Take Into Account the Costs Related to a Real Estate Purchase
When investing in housing, you mainly care about the cost of the stone. However, becoming an owner generates many other costs, starting with the visit to the notary, representing between 2 and 8% of the sale price. Work for a refurbishment or refreshment, bill to pay for the move, purchase of new furniture, or agency fees can also be added. Do not forget to inquire about the amount of property tax of the coveted property to avoid unpleasant surprises.
Be Impressed by Aesthetics
One of the mistakes to avoid when buying real estate is to expect an interior that is perfectly suited to your tastes. Do not rely on appearances and ignore the decoration to project yourself. Number and layout of rooms, condition of plumbing, or cost of alterations to review the interior are much more important questions when choosing your home.
Do Not Seek Professional Advice
When you want to buy a property, it is important to visit it several times and, if possible, in the company of experts. Plumbing, insulation, electricity, roofing, heating: surround yourself with professionals to properly inspect the home you want. By quantifying the work to be undertaken, you can more easily negotiate the property’s price and plan your financing.