Time is running out and you think about buying your first property daily? Regardless of your age, what is recommended is to leave the rental as soon as possible.However, buying the first property is not so simple, it is necessary to have planning and make choices in a very well thought out manner. Of course, in the process there are several doubts: House or apartment? New or used property? Financed or in cash? Is it worth buying a property at cost price?
Here are ways to help you answer these questions.
House or apartment?
This is one of the initial doubts of those who are considering buying a property and it is also one of the first to be answered.
New or used property?
When looking for a property, the economic factor is very important. So, the question arises: is it better to buy a new or used property?
Most of the time, the used property has a lower starting price that you can see at any of real estate website. But it is necessary to take into account something very important: Spending on reforms. Yes! A used property is not in perfect condition as a new property, so renovations are necessary, which generates expenses that impact the final purchase price and the cost of a used property can exceed the investment in a new property through quadwalls.
Finance or buy cash. Which one is more worth it? It is clear that the acquisition of a property in cash is much more advantageous, but not everyone can gather enough money to pay off the property first, so it is necessary to resort to financing.
Some tips for not “suffering” with the final value of the financed property:
- Take care with the interest rate. Any increase in the percentage, however small it may seem, is extremely significant;
- Pay attention to the total period. If you choose a 30-year loan, you will pay a smaller monthly instalment compared to a 20-year loan, but the final amount is much higher, as a result of compound interest.
- Give as much input as possible, as a good entry generates huge savings at the end of the financing.
Property at cost price is worth it?
If you have decided that you are going to buy an apartment and are not worried about moving immediately, a property at cost can seem very attractive at the initial price.