Making your first real estate purchase is often one of the major turning points in life. But whether you go it alone or in pairs, it is not always easy to make the right choices among the many opportunities that arise. So that you don’t have any regrets later, here are 3 tips from wise experts to make your first real estate purchase a success every time!
Tip #1 for your first real estate purchase: clearly define your project
To calmly undertake your first real estate purchase, it is important to define your project as clearly as possible.
What surface are you looking for? Do you want to buy a house to live in or do you rather want to make a rental investment? Do you prefer an apartment or a house?
Depending on the answers to these different questions, the approach to be adopted and the approach to the project will not be the same.
Primary residence or rental investment ?
If you find your dream home with all the necessary amenities for your family, you can buy it to make it your primary residence. You will then have the freedom to carry out expansion work or renovation if necessary.
However, it is important to keep the direct purchase of a primary residence usually requires a relatively high budget. You will therefore need a solid file to convince your banker and obtain your mortgage.
If you can’t, all is not lost. You can still realize your dream of becoming a homeowner by opting for a rental investment. This option allows you to take advantage of:
A home loan to very attractive rate;
Various public aids, such as the Social Rental Loan (PLS) or the Intermediate Rental Loan (PLI);
A reduction in VAT to 5.5%;
Exemption from property tax.
Do you prefer a house or an apartment for your first real estate purchase?
Building or buying a house generally allows you to benefit froma large exterior that it is possible to develop as you wish: garden, swimming pool, vegetable patch, etc. In addition, this option saves you the costs and hassles associated with co-ownership.
But in return, you will have to pay a higher property tax, bear maintenance costs for outdoor spaces, as well as relatively high gas and electricity charges. In addition, the budget to acquire a house in the city center may be high. You will then have to head towards the outskirts to find great opportunities.
On the other hand, the cost of apartments is relatively more affordable in the city centre. They are usually located close to shops, services and usual amenities. With an apartment, you can benefit from a security service, a concierge and sometimes even a gym.
On the other hand, decisions must be made collectively and condominium fees can considerably increase your current expenses.
Read also: 5 tips for buying a condominium
Buy new or old: the other dilemma to solve
For your first real estate purchase, you must also choose between acquiring a new property or an old property.
The new programs offer you the choice among modern properties built to the latest standards in terms of energy. In the old sector, the properties offered often require renovation work, but generally remain more accessible than new houses/apartments. In addition, these goods are generally available almost immediately.
So it’s up to you to consider each option and decide which one is best for you. If you have trouble deciding, book an interview on the Pierrelib website. An expert will help you clearly define your project in order to make your first real estate purchase a success.
Choosing the right location for a successful first real estate purchase
Choosing a good location is one of the keys to a successful first home purchase.
Whether you want to make your property a main residence or whether you plan to rent it out, it is important to take into account the proximity of services, schools and transport.
Housing away from transport or schools will naturally incur sometimes significant transport costs. If it is a rental property, you may face long rental vacancies.
It is also preferable to focus on a district or a city in full development. Take an interest in current real estate projects in the region, restructuring work or the announcement of the installation of new companies.
These factors generally portend strong growth to come in property prices in the said. which can allow you to make an interesting capital gain in the event of resale in the years to come.
Finally, don’t forget to find out about the safety, calm and health of the neighborhood that interests you. Your well-being or that of your future tenants depends on it.
Define your budget and assess your borrowing capacity
Before making your first real estate purchase, accurately assess your budget and your borrowing capacity, taking into account your:
Current income: salaries, pensions, allowances, etc.
Possible credits being reimbursed;
In all objectivity, discuss with your banker the maximum amount necessary for the realization of your project. Above all, don’t forget to take into account additional costs such as application fees, notary fees, the cost of borrower insurance and any work to be done.
You can find more information about this on this blog.
Our last tip for a successful first real estate purchase
For your first real estate purchase, do not make a commitment in haste after having visited a single property. Take the time to visit several before making a decision.
In addition, if you think you have found the property that meets your expectations and desires, come back and visit it at different times of the day or on different days of the week. A detail that you did not pay attention to during your first visit can quickly jump out at you.
Finally, do not hesitate to be accompanied by a professional. He will be able to guide you effectively for the success of your first real estate purchase.