Ten tips to keep in mind before buying a home

1. Location

Downtown or suburbs? The location is one of the most relevant factors. It is not limited only to the area, but to everything that revolves around it: road communications and public transport, existence of services -such as supermarkets, schools, health centers- nearby and other details will make the house more comfortable and ultimately a better investment. No need to move to the city center; in fact, fashionable neighborhoods are increasingly far from kilometer zero.

2. Price 

The current real estate market is diverse, but whatever the budget, you have to assess it calmly. In addition to being in accordance with the offer -if you discover a bargain that is too good, suspect-, it is important to take into account the area in which it is located, the qualities, the need for reform and at what level, the common benefits of the community... In In short, all the factors that revolve, both directly and indirectly, around the purchase.

3. According to your salary

Everyone dreams of their perfect house, but when it comes to adjusting to reality, things change. That doesn't mean you can't have it, of course, but in a consistent way. The experts recommend, among other things, that the monthly payment of the mortgage does not suppose more than 40% of the salary, always with a projection of personal profits in the short and medium term. In fact, many banks require a tighter threshold, even below 30%.

4. Energy

In new or renovated homes, a great point of value is the installation of a system that minimizes the demand for energy, with efficient production possibilities such as renewable sources. This guarantees, in addition to an investment for the future, an effective way to reduce the energy bill each month. Choosing a home with an A label in the energy efficiency categorization represents an estimated saving of 89% compared to an F rating, something positive both for the pocket and for the environment.

5. Type of mortgage

Choosing a mortgage is as important as selecting the house in question, so the analysis of the possibilities must also be exhaustive. In addition, according to our interests, it is important to opt for the option of a fixed or variable rate (the monthly installment to be paid for the first being the same throughout the life of the loan and for the second adjustable according to market conditions), the period, monthly payment or down payment.

6. New or second hand?

In this sense, there is no single answer, but there is a series of factors that will tip the balance to one side or the other. If you choose to live in the center of the city, the option is probably second hand, reform included; When opting for new housing, located to a large extent on the periphery, it is necessary to value the communications and the services it offers, among other things. The expense derived from the purchase also weighs: if it is an old building, it may be necessary to make some expensive change –pipes, acclimatization…-; If it is a new construction, the expenses may come from factors such as the community in case of choosing a home with a pool, garden or other common areas.

7. Review housing and area 

Once the property has been chosen, it is vitally important to review, with the help of an expert, all the factors that influence it in the long term. If it is a second-hand apartment, efforts will have to be put into checking the insulation systems, ducts or lighting; In the new construction, it is important to know in detail the possible expenses derived, the area in which it is located and the services that can be accessed on foot. If there is any defective element, it is best to notify the previous owner, either an individual or a promoter, so that he can take care of the pertinent arrangements.

8. Know the

VAT, AJD, IBI taxes... The taxes subject to the sale are numerous and, although some are better known than others, it never hurts to find out and do a general review to avoid misunderstandings or last-minute surprises.

9. Economic cushion

The savings needed to get a home must be at least 20% of the price of the property, a part that the mortgage loan does not cover. However, it is also necessary to think about a second cushion, which ranges from management expenses –notary, deed…- to extraordinary expenses that may arise after the purchase of the home.

10. Market and opportunities

Finding a bargain is rather difficult; When it comes to shopping, you need to be consistent. The idea is not to rush, but to take the opportunity if it presents itself. The halfway point is to check the property carefully before purchasing it, but not doubt if everything is going well, in addition to being clear about the area and characteristics of the property you are looking for.

In addition to following the decalogue of indications found on these lines, it is important to remember that surrounding yourself with good professionals and managers can make the purchase a safer and more exciting process, because, beyond the stress generated by facing an investment of these features, we must not forget that building a new home is one of the most important moments in the life of every family.

Source of information Banco Sabadell Link