Buying a house is a big dream for many people – but unfortunately also a real risk if, for example, the financing is not right or the property turns out to be a wrong decision. We explain what has to be considered, so that buying a house does not become a disaster we buy houses.
The right time – when is it worth buying a house?
From an economic point of view, there is probably no better time to buy a house when interest rates are low. But since interest rates do not continue to fall, but can only rise from this point, one should bet on a long fixed interest rate on house financing. So one experiences after some years no nasty surprise, when the interest rates have risen again.
With regard to the personal way of life, it is not easy to define a point in time. So it may make more sense to buy a house if you have a permanent job that requires little flexibility. However, at a young age it is difficult to predict where to work in 5 or 10 years. With a house purchase one makes oneself immobile. If you can say that you want to stay in one of the cities for the next 10, 20 or 30 years, you should think about buying a house. The topic “equity” also plays a role. Low interest rates promise favorable financing. But if you are still quite young and have only limited equity, the financing automatically becomes more expensive.
Depending on the age of the buyer, the amount of the loan, the maintenance costs and the added value of the property, buying a house is unwise from an economic point of view. Renting would be “more profitable” in many cases. But the topic of home ownership has not only a financial reason for many people, but also a personal one.
Whether it is worthwhile to buy a house, you always have to clarify for yourself in each case. Many people come to the point of no longer wanting to pay for “other” rent: “I can also put the rent in my own home.” They finally want to live in their own home, do what they like. Others see the home as a safeguard for old age – whether they live in it later or live off the sales profit. Furthermore, as an owner, you are “safe” from rent increases or a termination due to personal use.
Buy house – Which is the right one?
The family home is a dream for many people – with a garden and plenty of space for children and pets. It is suitable (depending on size) especially for families and people who like to invest their time and work in the home and garden care. Of course, a budget should be available for a single-family home. For the age or the need of care, single-family homes, due to the floors, usually not. A move or conversion would be required here.
A bungalow is clearly age- and wheelchair-accessible, but the living space is usually distributed only on one level. This is a real advantage because you can still live in your own home even in old age. As a result, the living space is usually smaller, as is the garden. A bungalow goes well with couples without children or small families.
A terraced house would be a good, cheap alternative for young families on a budget. Here, the purchase prices are lower than a family home, as well as the care and renovation costs, if you buy a large, detached house. And because the houses share at least one “outer wall”, even the energy consumption is reduced. However, you have to like being “close” with your neighbors. You can find more information about the terraced house on rented de.
If you want to buy an apartment building, you should think enough about what he wants to do with the living space. Family, friends and acquaintances move into the other residential units – or you rent the apartments and become the landlord. This decision should not be taken lightly. Renting an apartment building requires a lot of work, expertise and time. Last but not least, this is only possible with financing from the bank.
A mansion is an imposing property – historic, magnificent, and exceptional. But only those people who want to deal intensively with their property should buy a manor house. Usually mansions are in need of renovation, are listed buildings and have a large outdoor area that wants to be maintained or managed.
Buying a house – What to pay attention to when financing!
Financing a home purchase is quite tricky – without it is usually not, but buyers do not want to pay too much. It is very important to make an accurate budgeting in order to obtain the appropriate financing from the bank. Here in particular the additional costs are to be considered. When buying house fall incidental costs, inter alia, for the land purchase, for the notary, possibly for the broker and the land register entry. Further costs arise for a report or the renovation of the property.
Buy house without equity
Buying a house without equity is quite expensive. For the full financing can be paid by banks higher interest rates. Here it pays to calculate exactly – save longer and pay less interest on credit or buy a house now and basically benefit from low interest rates? Usually the financing of the house becomes cheaper, the more equity one brings.
Buy house without credit from the bank
An inheritance, enough savings, a personal loan from the family: The home purchase can be realized without any funding from the bank. Surely this is a real advantage because you do not have to commit to repayment terms. This is advisable only if not all the assets are used up with the purchase of the house. Reserves for renovations, personal wishes, holidays or purchases should remain available.
This is how the house purchase works!
Whether you want to buy a single-family home or a weekend home: The process of buying a home is theoretically always the same.
- Search and visit property
The real estate search can be done through a broker, via Internet portals or via word of mouth in the family and friends. If you have found suitable objects, you should visit them carefully and have all the important documents, such as floor plan or energy certificate, show. It may be helpful to consult an appraiser who will inspect the property for deficiencies. With the help of the land register excerpt, you can view various rights (right of residence, usufruct, right of way), which could either prevent the purchase or at least lower the purchase price.
- Negotiate the purchase price
If both sides agree, the purchase price can be negotiated. Here it is helpful to calculate a real market value for the house. So the buyer does not pay too much and the seller does not get enough. But in the end, the purchase price remains an individual matter of negotiation. For example, real estate is often sold below value or sold overpriced.
- Clarify financing
Few people can buy a home without having to apply for funding. The transition to the lender is therefore absolutely necessary. With the details of the property you can now apply for financing from the bank. A home loan comparison in advance can be helpful in assessing conditions and getting the best financing possible.
- Purchase contract with the notary and land register change
At the notary’s appointment, all parties meet, the contract of sale is read out, if necessary changes are made and the signatures follow. So that the purchase does not burst in the meantime, it is advisable to register a notice of default in the land register. Thus, the buyer rights are protected and the property can not be sold elsewhere.
If all requirements are met, the buyer is asked to pay the purchase price. Thus, the property passes into its owner and the notary can initiate the rewriting in the land register.