The purchase of real estate is one of life’s milestones - and is characterised by a high capital outlay and, as a rule, debt financing that is designed to be in place for decades. Therefore, any prospective buyer should consider their plans in detail in advance and ask themselves the following five questions.
When it comes to money and financial possibilities, realism dictates what is possible and what is not. Prospective buyers would do well to ask themselves just what kind of property they can really afford. This applies both to the monthly mortgage payments, but also to the credit line made available by banks. Ideally, prospective buyers have already discussed the project with a financing advisor or the bank and start looking for a property having secured finance in principle - this also gives the sellers security and makes it more likely for an offer to succeed.
Would it be a freehold apartment in a listed old building, or in a modern new-build? Or maybe a detached house, a terraced house, or a semi-detached house? How big should the grounds belonging to the property be? Where should the property be located, and do you have specific preferences for individual streets or districts? Prospective buyers should also consider the answers to these questions in advance and thus already narrow down the options when purchasing real estate. Clearly defining your own ideas in advance is also helpful when starting or commissioning your search.
It is possible to obtain a 100% mortgage for a property, but this also carries risks. Whether and how much equity capital is required depends not least on the bank's lending policy and conditions. You should also obtain information about all ancillary purchase costs in advance, which are usually paid for from the equity capital. This includes notary fees, land transfer tax, land register entry and brokerage fees.
Energy efficiency has long played a key role in real estate. Prospective owners can choose to purchase a property with a high efficiency standard or already consider how to renovate it in an energy-efficient way before buying. In this context, interested parties should also obtain an overview of grants and funding opportunities offered both by the government and by other administrations.
Especially the recent low interest rates have turned many prospective buyers into actual buyers. You should, however, not make your decision solely based on the current interest rates. Examine your personal situation, consider what the next few years will look like and whether such a large purchase really works for you.