Not without reason have you opened this article. Probably you have had the desire of a home of your own for a long time or since recently. As the desire of an own property grows, the catalogue of questions in one´s mind is growing at the same time.
Can I afford it? Where do I want to live? And how do I want to live? What must I look out for? How do I imagine my future? How much space do I need? What kind of paperwork will come up to me?
This article should provide a first rough overview of the most important basic points and questions which need to be considered when purchasing property.
Essential Considerations about Property Purchase
Before actually heading to search for a suitable property you should ask yourself a few essential questions. Because, he who begins the search in a structured manner, saves a lot of time and money. With a simple exclusion procedure you lay the foundation for a successful purchase of real estate. But in the beginning there is dreaming and visualizing.
Let your thoughts wander consciously and try imagining your home. The following questions might be a thought-provoking impulse.
- If you imagine your dream house, how does it look like?
- Do you dream of a romantic half-timbered house or rather of a modern construction of pavements lights?
- Do you dream of a small one-room apartment or of a grand villa?
- Do you want to live solitary and without neighbours or rather in a lively residential area?
- How do you imagine your future?
- Do you enjoy rather nature or hustle and bustle?
- One-family house/ multi-family house/ flat?
- In which location do I want to live?
- Town or countryside?
- Where will I work in the future?
Take notes of your dreams. A research in the internet demonstrates you how realistic your dreams are. Even if equity capital is not enough for a Romanesque horse farm - with patience and the right compromises you will find your dream property.
The Plan for the Future
Have you already thought about your future? Do you know if and how many children or pets you would like to have? Is it important to you to have a garden or does that mean annoying work for you?
The purchase of estate is a long-term decision - if it is not decided merely for capital investment. A clear vision about the own future supports in the exclusion procedure. Children need in the long run an increasing place in order to spread out. Even a roof for several generations needs to be well thought out. Keeping of animals again implicates new aspects into consideration. If you are single you are likely to need less space.
If you plan to live in your property until the old age, there is even more to answer than just the space question. Will you be able to master many steps? Can you imagine living in this place permanently? Is there a neighbourhood that can support each other in old age?
Old or New Property?
The market reveals that obviously more old houses change hands than new constructions. However, old real estate usually bring along more costs. Especially hidden costs can become a problem later. Depending on how one imagines his own property, one should make some considerations here.
New buildings are usually very energy-efficient and equipped with state-of-the-art technology. In the next few years they will probably only cause low additional costs in areas of modernisation and maintenance. Often it is possible to move into modern properties immediately after the purchase, since there is little or no need for renovation. So if you like it uncomplicated and simple, you should rather tend to newer properties.
Old properties should be thoroughly checked before the purchase. Often the facilities need to be renovated or even refurbished. If work has already been realized on modernisation, it can be demonstrated by means of bills and records. You err on the side of caution with an opinion of experts from an unbiased source. But that happens only once you have found your potential dream property.
The condition, type and age of the property are good indicators to take into account many of the possible costs.
Type of Property
Not all people have the same imagination of a home. The cosy town flat in the multi-family house can become as much a home as the free-standing one-family house made of bricks.
Your own space requirements, available capital and future plans determine how big your own four walls should be.
The location in which you want to live plays an equally important role here.
In the city, there are rather ownership communities that share houses. Here it is necessary to find compromises in a community in the long term. Many decisions are made jointly, but general costs are also shared.
One-family houses offer more independence, but also more responsibility. The costs for maintenance and property holding must be borne solely by the owner.
Condition of Property
In addition to the purchase price and your own taste, the general condition of the property is also an important factor. It is not only the interiors that can cause costs for paint and wallpaper. The technical installations, the roof and the frontage of a property are important cost factors in particular.
Old properties are especially often affected by later high modernisation costs. A check of the heating systems and other existing connections prevents any future surprises.
Water connection, modern sanitary facilities, cables, internet and telephone connections - everything that is already available becomes a plus. The better the condition, the lower the costs.
The seller or broker should disclose all defects and structural damage.
Ask openly during inspections what kind of work will have to be done in the future and what has already been done. As an interested buyer, you can request insight into old invoices for repairs. A glance at the construction file can also be very helpful: the construction method and age say a lot about the life span of a property.
Handicraft talented house buyers may even plan to do a lot of renovating themselves. Think about how much time and energy you are willing to invest. A renovation or even refurbishment can be time-consuming, but can also develop into a great exciting adventure.
Financial planning is the alpha and omega for property purchase. Hidden costs can be lurking everywhere, for those you should be mentally prepared. The available equity capital can become a plain and solid basis. It also serves as a basis and assessment for possible lending.
It is important not to overestimate yourself and to think realistically about what you can afford.
Ask yourself honestly how much your dream property is worth to you. What amount of credit can you pay off each month? How many years would you like to pay off a loan? How much does an expert report cost, what a notary? Does this pay off compared to a rented apartment?
Construction loans and credits enable to make the dream of owning your own home come true. However, careless action and overestimation of oneself can cause to burst castles in the air just as quickly. Therefore be honest with yourself and do not make any decision half-heartedly. A precise calculation will make you happy with your own property faster and more relaxed.
Costs of Property Purchase
The purchase price is the first and very obvious cost factor when purchasing a property. However, there are other costs that should be taken into account. The equity capital, a potential loan and the costs for the final purchase - everything leads to the decision for or against an object.
Costs of property purchase - essential points
- Purchase price
- ATTENTION - Net prices, taxes are usually added
- Real estate transfer tax
- Age of property
- Possible costs for modernisation, renovation or refurbishment
- Condition of sanitary facilities and more connections
- Costs of maintenance
- Additional costs (Waste, electricity, gas, tax on building etc.)
- Notary fees
- Residential building insurance
- House and landowner liability
- Drafting of an independent expert opinion / assessment of the real estate
Tips for the Search for your Dream Property
The decision for a home of your own involves a lot of responsibility. You create a home where you want to feel comfortable for a long time. Of course, there is a lot to consider.
Taking your time and enjoying the search is probably the most important tip.
Make many visits to get a feeling for different architectural styles. Not only from pictures on the Internet, but also when walking through the rooms from the inside. Imagine your life there
and set everything up in your mind.
It is always best to visit by daylight. Talk to the neighbours and have a look at the area. Does this place give you everything you want? Can you feel comfortable with the ambience of the street? How is the traffic connection? Are there any day-care centres close-by?
A good research on the Internet also generates many ideas. Thoughts about your own future should also be allowed again and again. How much space do you want for yourself?
Take your time on the way to your dream property.