The demand to buy a property can be very time consuming and complicated, due to a large number of issues that must be taken into account. Read on to realize 6 financial mistakes that many people make when they are looking for a home.
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First of all, you should consider whether to buy a property or if it is more advantageous to rent a house for some time. If you already have in mind not to stay in the same dwelling for a long period, it may be more compensatory to resort to renting.
It’s all about balancing the pros and cons. On the one hand, the house you buy is yours and, as such, you can have it according to your preferences. On the other hand, when leasing will have to respect the rules of the landlord.
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For those who do not get a home loan that is geared to their needs, it may become difficult to pay the agreed installments and to default, it is something to avoid.
Currently, there are mortgage loans with various types of payment, being able to opt for capital shortage or even capital deferment if you need to pay a lower monthly payment at some point in the contract. It’s all a matter of comparing the various offers and choosing the one that best fits your specific case.
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It is true that in the current economic climate it becomes more complicated to have a stable job, but this factor is important when thinking about buying a property.
You should be at a stage of your life when you consider that you have a reasonably secure job, so that it is easier for you to not only pay your housing loan to the bank but also all the expenses that come from acquiring property – water, light and gas, furniture, painting, and decoration, among others.
He must, from an early age, keep in mind that the work he is in will not be forever. As such, you should consider saving some of your monthly income for any unforeseen financials – for example, your car engine has broken down, your clothing machine has stopped working and you have to get a new one, or even health problems that require treatments more expensive.
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It is very important to analyze the real estate market before buying a property. If you are not aware of your values, you may not understand when you are asked for a higher value when you want to buy a home.
You should conduct a market survey, analyze whether there is a lot or a small number of houses in the area you want, understand how the market oscillations work, and understand some financial terms that help you demystify the values you will have to pay when you buy a property.
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Before probing the market and also researching on the best mortgage loan for you, you should plan to purchase the property itself. This means that you should ask yourself not only about your financial possibilities but also about other important aspects.
One relevant aspect to take into account will be your effort rate. If you already have some loans, is this a good time to buy a property and ask for a mortgage loan? Typically, the effort rate should not exceed one-third (33%) of your monthly income.
You should also consider whether you have any money available to give as an entrance when you buy a property. This amount depends not only on the percentage that the financial institution gives you the value of the house but also on the property price itself.
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Another mistake you should avoid is to not think of all the expenses that come from buying a property. When you think about buying a property, you can not just think about the exact value of the property, you should rather consider several extra costs, but that is inevitable.
Firstly, you should know that you will have to purchase life insurance and multi-home insurance, as it is compulsory to take out these two insurance policies when you make a mortgage loan. Both insurances protect you and your property in case of any problems that may occur – from natural disasters to unemployment.
Secondly, it is important to know the interest rates and spread applied and the fees charged by the bank in which you will acquire your mortgage loan.
Lastly, pay attention to the taxes you must pay when you buy the property. In particular, the Municipal Tax on Real Estate and the Municipal Tax on Onerous Transmissions.
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On the other hand, is the tax paid on the acquisition of the property and is applied to the tax value of the house.
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Finances indeed are, as a rule, somewhat complicated and difficult to understand, but with some patience, it is possible to educate yourself financially and understand the taxes and why you pay them. This way, you will not need to spend more money when paying an Accountant to deal with personal finances.
In summary, you should have a clear global perspective on everything that implies buying a property. You should take introspection to see if you are financially capable of acquiring a home and if that is your future goal, but you should also analyze the real estate market to understand the values and the existing offers.