Many people don’t ask themselves the right questions when they are thinking about buying their own property, be it for private use or as an investment. But while savings in the bank can generate virtually no interest, the purchase of one’s own property if you can get reasonable mortgage interest rates is an interesting option. However, you should look at these 3 key things to consider in buying a property.
Key things to consider in buying a property
First of all, there is the financial review of the feasibility of the intention to buy a property. To this end, a detailed overview of monthly receipts and expenditures should be obtained. As a result, you can then have the financial feasibility of the real estate acquisition checked by means of a mortgage calculator on the Internet or by consulting the bank. This makes financing the most crucial of the key things to consider in buying a property.
Buy or build?
Once the feasibility has been checked and the decision to buy one’s own four walls has been made, the question arises whether it should be a new building (whether built by yourself or a developer) or rather an existing property or an old building. It is important to carefully weigh up the advantages and disadvantages of these types of real estate as one of the key things to consider in buying a property.
An important factor of every property is its centrality and location. Residential property with good connections to the public transport network and all everyday facilities in the immediate vicinity are often much more in demand than properties on the outskirts of the city or in the countryside. Of course, despite all the centrality, the property should still be quiet and not on a busy main road. In the case of self-use of the property, you save a lot of time every day for the way to work or to go shopping. Especially in today’s times, this is a major advantage.
Even in the case of the use of residential property as an investment object, a much higher rental rate can be achieved in such a situation than for properties in peripheral location. The later resale value also benefits from a quiet but central location. Since all the major cities in these areas are often already built on, one can only rarely find new buildings here. If they do, the purchase prices are often very high. Thus, buyers with such requirements regarding the location of a property are often forced to buy an old building.
Another clear advantage of an old building is that as a buyer you see what you buy. New buildings can only be viewed in the form of illustrations by the architect and floor plans. However, such new-build properties also offer the advantage over existing properties, that one can contribute one’s own wishes and ideas from the beginning in the planning phase and thus a tailor-made and also energy-efficient property. However, if one considers the pure purchase price, old buildings are also much cheaper than new buildings in a comparable location, but with these also with faster and higher repair costs as well as due to their poorer energy balance, higher ancillary costs are to be to calculate.
For living in or an investment?
Whether for self-purchase or as an investment, both models have their advantages and disadvantages and this is one of the key things to consider in buying a property. If you go into your own four walls, you will not have to pay the monthly rent. However, if the property is not financially viable or desired for the whole family, one can also opt for the acquisition of residential property as an investment. Here you get a monthly rent from your tenant, which you can include directly in the monthly loan rate. In addition, you also benefit from tax advantages.