There is no age to realize the dream of home ownership. Even without special conditions from the government or financial institutions, young people from 20 to 30 years old have proven that it is possible, indeed, to finance the first property.
In this case, financial planning becomes an indispensable step, even before the purchase of the property for those who manage to contract a mortgage, as there are several situations to be considered so that the purchase of the property does not harm the monthly budget.
At such times, it is essential to analyze several details before taking any kind of action. This may seem simple, but many people do not take care to avoid problems in the future.
Keep following this post to better understand how to make your planning!
Think before hiring real estate financing
According to experts in the real estate market, those interested in joining a real estate financing should analyze conditions such as the salary perspective, the conditions of the financing program, the term of the installments and the social position in which they find themselves and the current economic scenario.
Financial advisers suggest that buyers have a financial reserve, somewhere around a third of the total value of the property, to make their down payment. This causes the value of the installments and, consequently, the amount of interest to be paid to be lower.
So that the acquisition of the property does not put too much pressure on buyers, it is recommended that the total value of the installments does not exceed 25% of the monthly income. If possible, it is also advisable for the buyer to set aside 10% of the salary for possible emergencies. That way, financing the property does not become a burden on the budget and you will not make sacrifices in your routine.
Evaluate all the characteristics of the property
For most people, home ownership is considered the greatest asset of financial and emotional value. Therefore, when investing in the purchase of your property, it is interesting that you consider some characteristics.
The first of these is the location. You may have fallen in love with the property, but the neighborhood must offer basic infrastructure for your needs, such as supermarket and public transport. Living in a place that does not have these establishments is a bad idea.
The second is about your life projection. How do you imagine yourself eight years from now? Do you intend to work in the same career or do you want to change jobs? Do you plan to have children? Try to think about these variables when choosing the property, as it will probably be part of your routine for many years.
The third, but not least, is the proof of legalization of the property. You, as a buyer, have the right to request verification to confirm that the property records and obligations with the condominium and the public authorities are up to date.
Use your Guarantee Fund balance
A good opportunity for those who have worked with a formal contract for at least 3 years – not necessarily under the same employer – is the use of the Severance Pay Fund (FGTS) in the financing of the first property.
It is possible to use the entire balance available in the fund to make an entry. In this way, adding the FGTS to your savings, the price of the installments can decrease considerably. Another benefit of this more robust entry is the reduction in the financing term, which can be around 15 years.
Formalize everything on paper
The organization is a fundamental characteristic of a successful person, and it could not be different to finance the first property. Formalize the entire proposal, taking into account everything that has been agreed with the broker, such as price, term, payment method and adjustments.
Don’t forget to keep this contract in a safe place and always check it when you have any questions.
Cut unnecessary expenses
Every family has its peculiarities, doesn’t it? However, they all experience financial difficulties when least expected. In these situations, it is ideal to be prepared to overcome the challenges and not jeopardize the financing of your first property.
Remember, therefore, to eliminate extra expenses in your budget and to optimize the expenses in your life. We are not telling you to deprive yourself of everything you like, we just want you to have discipline when making purchases.
Be very careful with your credit card and avoid abusive interest by delaying payment of the invoice. Think twice if you really need to make a purchase before making it.
Be aware of the expenses generated with the purchase
Some people believe that signing the contract is the last step of buying a property. In fact, there are several other issues, such as renovations, buying furniture, carrying out the deed and paying taxes.
So, set aside money to pay for these expenses and don’t be caught off guard.
Know the differences between new and used properties
The real estate market is undergoing constant changes. Nowadays, there are several options for those who want to find their own home. A used property is cheaper, but may not be in good condition. In these situations, you will have to invest an amount in renovations and repairs.
Therefore, check the electrical and hydraulic installations well and see how the floors and roofs are doing before making a purchase.
A new property or even in the plant is a great option for those who want to avoid these problems. However, there is still a risk of bankruptcy of the construction company. So, do market research and discover the company’s history.
Seek expert help
There are, in fact, several issues to analyze when buying a property. Many people are laymen and do not know how to check all situations. If this is the case, look for a real estate consultant and ask for help. Make a point of working with a trusted professional who will help you find the property of your dreams.
Financing the first property is a big step in anyone’s life, especially as it represents an investment for the future. The search for the place that most pleases you and that fits in your pocket must be conscious and with a lot of planning. After all, you will invest in your future home.
In such cases, be very attentive to analyze all the factors that can influence your family’s well-being and make a choice appropriate to your needs.