An investment for life - what is important when buying a property

An investment for life - what is important when buying a property

Security, quality of life, space for personal development, asset value, retirement provision - there are many reasons to buy your own property. And there are at least as many aspects that should be considered before or during the search for the right property. In today's blog post, we would like to give you an initial overview.

Before you put your plan into action, it is important that you first think about the following five questions:

1. Do you want to buy or build a property?

2. What type of property do you want? A classic detached house, a villa, a terraced house or perhaps a semi-detached house?

3. Where would you like to live - in the middle of the city, on the outskirts or in the countryside?

4. How much space do you need for how many people?

5. Does the project still have some time to run or should the move to the new home take place as quickly as possible?

After you have answered these questions for yourself, you can now start to put your plans into action:

Create financial clarity

Owning your own property is often one of the biggest purchases in your life. Clarity about your personal financial situation is therefore essential. It is best to clarify in advance what your monthly income and expenses are, how much equity you would like to invest and what the maximum monthly installment for financing the property should be.

Gather information

Inform yourself in good time about other costs - the so-called ancillary purchase costs - that are associated with the purchase of the property and must be financed from your own funds. In addition to the purchase price, these include land transfer tax, notary fees and the estate agent's commission.

How much property can I afford?

As a rule of thumb, at least 20 to 30 percent of the purchase price should be financed from your own funds, including savings in call or fixed-term deposit accounts, building society savings contracts and securities. With regard to the maximum possible repayment installment of the loan, this should not exceed 40 percent of net income. Ideally, you should seek advice from a financing expert on this as well as on any funding options in order to find the best possible solution together.

Around the property

Before looking for the right property, you should also ask yourself the following questions in addition to the aspects already mentioned: Are you prepared to invest in major renovation or modernization measures before moving in? If so, how high should the budget be? Do you prefer an old or a new building? What about the location and transport links of the property?

Location is the be-all and end-all

The location is undoubtedly one of the most important criteria when buying a property, as this ultimately determines the current property value and the potential resale value. For example, if the house is located far from the city center, you can expect significantly more favorable conditions in some regions. However, you are usually dependent on your own car or public transport. Check whether local amenities are available and whether your own workplace, doctors' surgeries, pharmacies, schools and daycare centers are easily accessible. It is also worth taking a look at the area around your potential new home at different times of day. This will give you an overview of noise pollution and other factors at different times.

Clarify any unanswered questions

An initial viewing will give you a good rough impression, but should not be used as the sole basis for your decision. If you like the property, you should take a closer look at it during a follow-up viewing, and any unanswered questions should also be clarified. Of course, this also applies to questions about the asking price and the purchase contract. If you consult an experienced estate agent right from the start on the way to your dream property, you are also on the safe side when it comes to these issues.

Create an individual search profile now and be automatically informed about suitable real estate offers at an early stage. Our VON POLL FINANCE advisors offer you professional support for your real estate financing - including a personal financing certificate

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