What are the questions to ask yourself to make your first purchase of an apartment or a house? Not easy to navigate when you are first-time buyer (person who makes his first real estate purchase). Here’s a guide to the first purchase of housing based on top questions to ask before buying your first apartment or home. Click here for villas if you are going to bali.
Is a purchase more financially attractive than a rental?
Renting is not always “throwing money out the window”, the first thing to do before making your first real estate purchase is to compare the purchase and lease. You can use this comparison purchase / lease. You have to keep your home long enough for the purchase to be more profitable than renting. Visit this site for villas if you are going to bali.
How many years will I keep housing purchased?
If you have a risk of leaving this property after a few years, will you be able to rent it easily and transform your purchase into a rental investment? Can you sell it easily at a price close to your purchase price? Know that as a rule, you should never buy for less than 6 years. This duration can go up to 8 or 10 years in periods of falling prices. In some cities where prices are much higher than rents, this limit can exceed 20 years.
Are housing prices accessible?
While it is almost impossible to predict the low point of real estate prices, it is easy enough to know whether prices are overpriced or undervalued at the time you want to buy. For example by comparing the current level of housing prices against their historical data. The more you buy at a time when real estate is expensive and the longer you have to keep this good to make a good transaction compared to a rental or simply to sell without much loss once all costs deducted.
Is my budget enough to buy the type of good I need?
Defining your needs in the short and medium term and the budget you can spend on your first home or apartment purchase is an important step. For example, this simulation of borrowing capacity can be used. Contribution through his savings is very useful and it allows to pay his principal residence with a less large mortgage.
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