Tips Before Buying (Building) A New House To Keep You Away From Spending Too Much Money

This page contains number of very useful tips before you buy or build a house of your dream, to cut the expenses as lower as possible by dealing with all the general factors when buying or building a house. 

You want to buy or build the home of your dreams? It is essential to take into account all the costs associated with your future investment. To avoid disappointment, have all the cards to determine what really cost your home and your maximum budget is not exceeded.

The purchase price, agency fees and notary

This seems obvious, but the purchase price of a property will affect the final cost. The purchase price of the land , the cost of construction or the price of a good condition in fact already built the costs, the amount of money to borrow, the agency commission, notary fees. Hence the need to negotiate the best to get the lowest possible purchase price. The time is now to take advantage of favorable downward trends in real estate prices.

A decrease of 10% can save you more than 20% of the final cost. Whether you buy the new or old, you will be forced to set notarial costs will be approximately 6-7% of the price purchase of a property in the former and 2-3% for a new property. Want to go through a real estate agency ? You must pay an agency fee set freely by the realtor. There may be large differences from one agency to another. Given the current housing crisis, it's time to negotiate reduced agency fees.

The costs associated with the loan

Once removed your capital, you will be left a certain amount to be borrowed. The final cost of your loan will depend on the interest earned and the period of credit rates. In the limit of a maximum leverage ratio of 33% opt for the shortest appropriate period of time (15 years is ideal). The higher the loan is spread over time, the more it costs! For example a loan of EUR 100 000 over 20 years at 3% will cost 40,400 euros in interest (excluding insurance).

Taken over 25 years at the same rate (the rate is often higher), it will cost you 51 euros 200 (excluding insurance) or 10,800 euros in additional interest. If you have excellent customer profile, do not hesitate to negotiate the rate. Added to this the cost of the loan, the fees that vary depending on the bank. As the rate, if your profile is "reassuring" you can get a lower rate. Count between 500 and 1000 euros in fees, which are added warranty costs (mortgage, privilege of the money lender ...) representing approximately 1% of the borrowed capital for a former property and 2% for the nine.

Insurance is mandatory to obtain a loan. However MURCEF law allows you to create competition. You do not have to take the initiative proposed by the lender to the extent that you choose offers the same guarantees insurance. To you to compare the price to get more interesting.

The costs associated with the use of the property

If you buy into the former or as part of a renovation, do estimate the amount of work and upgrading. If the goods are new, plan an annual budget for routine maintenance of a house. As an owner, you will have to pay a property tax. The price depends on the area of your property and the tax rate set by the municipality.

Two neighboring municipalities may impose very different rates. It can be interesting sometimes to buy 500 feet away! Take into account also the costs associated with daily transportation to get to your workplace. A more expensive homes but you can get around on foot can be more interesting than a much more attractive will require a monthly subscription or additional transportation cost of gas .