The 10 Golden Rules for Successful Property Buying
Any real estate purchase presents risks. By following the 10 following rules you will put all the chances on your side to succeed your purchase of house or apartment. Through these 10 commandments, you will greatly reduce the risk of making a bad deal. Discover how to prepare for the success of your property acquisition.
1. prepare you property purchase properly
The first rule to follow before buying a home is not to neglect the stage of preparation of your project. This will save you many hours of unnecessary searches, unsuitable home visits. Time is money ! Ask yourself a few minutes. Take notes and start by listing the criteria for the property you are looking for. Then, set your budget overall for this acquisition. The more precise you will be in this initial phase and the more time you will gain later. Of course, you can always refine these criteria over the days (and your research).
2. The real estate sector will adapt to frequent changes.
New aid, changes in taxation, fluctuations in prices and taxes, new regulations, etc. The elements that can condition your purchase are many. After a first inventory of the property and your budget, the second step will be to inform you about the current conditions of the real estate market and to update your knowledge with the latest changes in force. For this, you can find our latest articles on the real estate news .
3. Research your local property market
The general press has given you a complete picture of the real estate market, but there are thousands of different real estate markets. It is therefore essential to complete your project preparation with a comprehensive study of your local real estate market. This requires information on: Your neighborhood or city, The type of property sought, Prices for this type of property in your area of research, In that stage, use property valuation websites to obtain information on the price of real estate . You can also browse the websites of real estate ads to get an idea of the prices asked by the sellers. Attention, you will find both apartments and houses at market prices as well as goods that will never sell at similar rates.
4. Invest for the long term
A real estate purchase becomes more financially attractive than a lease only after having lived there for several years. And yes, there are many acquisition costs to be amortized before a purchase becomes profitable. In times of rising prices, its value assumes its value. A retention of 5 years can be enough to be a winner. On the other hand, in periods of stable or falling prices, delays can dramatically increase. Count on a minimum of 7 or 8 years in these cases. A real estate purchase for the short term will present large risks of very high cost, except in rare situations. To optimize your chances of success of your project, therefore, favor the purchase in the long term. To find out how many years you have to keep your apartment to make money from the rental of the same property, you can make buying or leasing simulations .
5. Take your time
Patience should be one of the main qualities you will have to demonstrate during your real estate acquisition project. We do not buy an apartment as we buy a shirt. You are going to commit on large sums of money and most likely for several years repayment of a mortgage. So it’s not something we do lightly. The consequences of a bad choice can be very expensive! Respect the adage: “It is better to miss a good deal than to make a bad one” and you will succeed in your project with serenity. In the same way, one does not buy a good by default. If nothing matches your needs in your budget, it is best to shift your project over time and wait for other goods to arrive on the market or as your budget increases.
6. During the viewing ask questions
A real estate property is purchased in the state. That is, when you sign the deed of sale, you will no longer be able to turn against the seller. If there are disadvantages to which you have not been sufficiently vigilant, it will assume the (except for hidden defects ). When you are satisfied with the property and the majority of your criteria, always make several visits and take as much information as possible before committing yourself. Ask all necessary questions and, if necessary, call on qualified professionals for independent advice on specific issues. Electricity, insulation, heating, minutes of condominium meetings, amount of local taxes, etc. The list of items to check is long …
7. Negotiate the price of the house
The time when a good was sold in a few hours and without negotiation is over. Except in rare cases where a home is placed at a much lower price than the market, sales times range from a few days to several months or even years for sellers who camp on an inappropriate price. The purchase price of the house or apartment will condition almost any other fees you will have to pay for this purchase. If there is only one thing to negotiate when you buy, it is the price of housing.
The financial success of your property purchase depends, in large part, on the price at which you will pay for your property.
8. All fees and costs
When you buy a property, you have to pay two different types of fees in addition to the price of the accommodation: Acquisition costs from the moment of purchase: notary fees, real estate agency fees, application fees for financing, etc. User fees as owner: annual property tax, condo fees or maintenance / renovation of your home, etc. Many buyers neglect the cost of all these costs over time. To avoid future financial difficulties, make sure you know the amount of each of these expenses. An example detailed in our article on ” all costs related to buying real estate .”
9. Borrow for a short time
Once you have minimized the amount you need to borrow by negotiating the purchase price, you must remain vigilant on this point: the duration of repayment of your mortgage. The longer the duration, the more borrowed the euro will cost you in interest (and in loan insurance). In order not to explode the cost of your loan interest, you therefore have every interest in minimizing the duration of your loan. To minimize this borrowing time, one must choose the best mortgage of the market, one that will allow you to pay less interest and therefore to have the shortest duration of repayment for the same monthly payment.
10. optimize your financing
The last rule to follow for a successful property purchase is to optimize the financing of your apartment or your house. If you are not careful, the cost of your financing may be higher than the purchase price of your home! After looking for the best value for your property, it would be a shame to ruin all your efforts by neglecting the quality of your financing. Yet respecting simple rules, it is possible to reduce by 20% the cost of its real estate financing .