Buying your own home
Buying your own home is, of course, a very important step in the life of every person. At the same time, it is worth considering many factors that are important when choosing a house or apartment. For example, what type of real estate is right for you, what area of housing, in what area it is located, in what price segment, infrastructure and many other factors.
Real estate is a good investment. Having your own home, you can feel confident in the future, your family is safe.
What are the main advantages of buying your own home:
- Long-term savings. Renting a house, you spend a lot of money every month, but in the end you still remain without property.
- Receiving rental income. Buying an apartment or a private house is an investment that can be made profitable. By renting out your home, you reimburse your expenses.
- Earnings on the sale. Over time, real estate can rise in price significantly. By selling it, you will cover the costs and make a profit. The value of housing can be increased by making repairs, taking care of the cleanliness of the yard, etc.
- The freedom of action. In your home, you can make any repairs (within legal limits), change furniture, plumbing and everything else. In rented housing, the rules are dictated by its owner.
- Confidence in the future. You can live your whole life in your home, and then pass it on to your children and grandchildren. Sooner or later you will have to move out of rented housing.
When choosing a future home, it is very important to study the following factors:
- Infrastructure. How close is a grocery store and public transportation?
- Schools. Is there a kindergarten and a school in the vicinity – if these questions are not relevant now, perhaps in the future they will become such.
- Neighborhood. Rate how well-kept the yard is and how safe the surroundings are. Also, it will not be superfluous to get acquainted with potential neighbors.
- The technical condition of the house. Check for cracked walls or visible moisture. You can study the information about the house project in more detail. This way you will find out what are its benefits and the most common problems. Be sure to find out what the status of the land is, who maintains the house, and find out if the house is in debt.
- Property value. It is very important for yourself to determine how important the price of the property is and, of course, what your source of funding will be. This is especially true for buying a home with a mortgage.
Housing in a mortgage
When buying a home under a mortgage agreement, you have to make an initial payment in the amount of approximately 5 to 20% of the cost of housing. The remaining amount is paid within 5-30 years with rather big interest. Then the apartment is completely transferred to the ownership of the borrower. If at some stage you will not be able to pay and it comes to the alienation of property, you will simply lose the funds deposited earlier.
Assess if you can pay off your mortgage
- Calculate whether you are ready to pay a fixed amount to the bank every month for 20-30 years. In this case, you will have to overpay 2-3 times the real cost of the apartment. This difference can be reduced by making an initial payment, repaying the loan ahead of schedule (if the bank does not provide for penalties for this).
- Get ready to pay taxes, make repairs at your own expense, and pay utility bills. You will have to pay for the maintenance of the living space yourself, buy furniture and household appliances.
- Check your credit history. If you have unpaid loans, unstable income or “gray” salary, you will not be approved for a mortgage, and you will have to rent an apartment.