How to be sure of making the right investment in housing? We have prepared a guide with the ten main tips to take into account when buying a property, both to live in it and to make it profitable. The main suggestions have to do with the analysis of prices, the choice of the best mortgage loan, the forecast of recurrent and fiscal expenses or revaluation opportunities.
One of the main tips that real estate experts give to homebuyers is “doing the accounts well”. Although it seems a truism, it is the vault key of the entire operation. To start, you have to buy a flat whose mortgage does not consume more than 40% of the net salary.
In addition, based on that amount that can be spent, you must have saved a minimum of 20% of the price of the home you want to buy, to which it is advisable to add a “cushion” for extraordinary expenses that may arise, as well as the legal ones.
- Do a study on the price and the potential revaluation of housing
The price is the main variable to take into account when deciding on one home or another, but it is accompanied by another vitally important argument: the potential revaluation. Whether the home is going to be used for investment – that is, for rent, in search of profitability – as if it were acquired for one’s own use, it is advisable to combine an attractive price with expectations of a solid future.
- Find a flat for which you do not have to pay more than 40% of your salary
The budget is one of the most important factors when buying a home. Therefore, before hiring a mortgage loan, it is important to know what monthly expenses can be paid, making a projection of income in the short and medium term. The ideal is that the mortgage does not suppose more than 40% of one of the main salary of the family unit, to avoid unnecessary risks of non-payment. There are banks that lower this threshold, even more, up to 33% or even below 30%.
All the factors are important when preparing a purchase budget: job stability, salary, the mortgage index that is going to be applied … “It’s about analyzing the numbers and finding out how comfortable the mortgage payment is. That is to say, it is better to stay short than to spend. Hence, the experts differ on the downside, but never recommend spending more than 40% of the net salary.
- Carry out a study on the mortgage that is best for you
At this point, the big question arises: mortgage at a fixed or variable rate? Fixed rate loans have become the flagship product and already account for a third of total contracting, but variable mortgages are still more attractive … as long as interest rates do not shoot up in the long term.
- Calculate community expenses and their influence on profitability
In addition to the final price of the home, the experts in the residential market recommend a thorough review of the community expenses and the charges or debts that the purchase of the apartment may entail. “If these are very high, or are shared among very few neighbors, you must incur a monthly payment that will significantly increase your investment or make your investment less profitable
- Weigh the advantages of buying a home to reform
Both in the case of opting for a house to live as if it is acquired to make it profitable through rent, buying a house to reform can have interesting advantages, especially in the center of large cities. Not in vain, to the possibility of designing the house to suit you, it is possible to add another plus: a greater reduction in the final price.
Before starting the reform, the strengths and weaknesses of the home should be analyzed, especially in areas such as insulation, ducts or lighting that requires special attention. This is explained by the Idealista portal. “It is also interesting to consider the aesthetics that you want to give and all those details that you are looking for in a house, for this it is necessary to prepare a concrete project, that fits perfectly to our needs and budget, and thus avoid future errors”, warn.
One of the drawbacks that most concerns a second-hand home is the condition of the pipes. If they are visible, they can be replaced without lifting the floor, or they can be painted the same color as the wall.
- Save extra money for extraordinary expenses
Real estate experts recommend having two inexpensive mattresses. On the one hand, you have to save, at least, 20% of the price of the property you want to buy, to pay for the part that does not cover the mortgage loan. On the other hand, we must allocate another percentage of savings to the expenses of the deed, lawyers, notary, etc. … as well as possible extraordinary expenses that may arise after the purchase of the home.
- Visit the neighborhood and housing and review possible hidden defects
Before deciding on a property, it is important that a professional perform a technical inspection to determine the state of the mechanical systems, the general layout, and the aesthetic-environmental conditions,
- If it is an investment, it is necessary to prioritize the area and profitability at the price
In the central areas of large cities, the residential market is recovering more solidly than the rest. They are well-connected areas, which have a very solvent demand, offer high profitability and host an important commercial activity. In them, both those who buy to live on a regular basis and investors looking to put the apartments for rent have a safer expectation of revaluation than in other areas.
If you are really interested to invest in housing in Gurgaon, then Mahira Homes Sector 68 Gurgaon will be the best option for you because you will need very less money to do so as it comes under affordable housing policy of Haryana government.