Buying a house is one of the biggest investments anyone makes in their life, but not everything has to do with money. Knowing whether you are ready to buy a home depends on many factors, and it’s a very personal decision that can affect your whole life.
According to a study by Fotocasa, five out of ten tenants would want to have their own house, instead of renting. If you are one of these people, but you’re unsure about taking the next step, in this post we tell you how to know if you’re ready to buy a house.
1. You have saved enough.
2. You have your debts under control.
3. You understand your own finances.
4. You are ready to settle in one place.
5. You know exactly what you want the house for.
1. You have saved enough.
We’ve stated that not everything has to do with money, but money plays a very important part when buying a house. If you have already begun to investigate how much money you need to buy a house, you know that to get a mortgage you will need a down payment that goes from 10% to 20% of the total value of the home, or in some circumstances even more.
However, this not all; in addition to that amount, you will have to spare money for notary expenses, Property Registry, VAT if it is new construction, ITP if it isn’t… Today there are some calculators on the internet that allow you to make an approximate calculation, but the best thing, as always, is to have the help of a professional who can advise you.
Finally, we recommend that your savings for the house be separated from the rest of your savings; you never know when an emergency can happen, and it’s always good to have a small nest just in case.
2. You have your debts under control.
If you have outstanding credits to pay, or in general any type of debt, and you need a mortgage to buy the house, sit down to calculate if it really is an expense that you can face monthly.
At the time of requesting a mortgage, the bank will calculate your capacity of indebtedness, and for this they will take into account both your income and your debts, and will ensure that the monthly fee does not exceed 35% (approximately) of your net income.
Having debt is not incompatible with buying a house, but before embarking on such an important process, it is good to think about why you have those debts. Is it a debt that arose because of something unexpected, and that you know you can pay in a short time and without problems? Or have you been spending money than you can afford for a while?
If you know how you are going to manage your debt, and you have everything planned, go ahead with the purchase.
3. You understand your own finances.
Related to the previous points, once you have made sure that you have enough savings and that you can manage your debts, you have to plan everything else.
Although in the bank they can advise you with the documents that you give them, it is you who should consider what monthly or annual expenses you have, since there are things that the bank will not take into account. Do you have an elderly pet that will need many visits to the vet soon? Do you plan to have children soon? Do you have an expensive hobby that you don’t want to drop?
All these things have weight when deciding the conditions of your mortgage, and the more information you have, the better.
Similarly, it is a good thing that you have some basic knowledge about mortgages, so you’re aware of what conditions and credit are best for you and whether you’ll be able to get those conditions. That way, you will be able to calculate your long-term expenses.
4. You are ready to settle in one place.
Unless you are buying a house to flip it, to rent it, or as a holiday home, when buying a home you have to be sure that it’s in the place where you want to settle during, at least, the next five years.
Settling in one place does not necessarily mean forming a family; all future possibilities are on the table. Take a look at your resume and your ambitions and consider how many times you have changed jobs, and if the place where you are working now is stable enough to stay for several years.
Even if you plan to sell it, a house is a long-term investment. If you buy it and sell it a year later, it probably has not been revalued enough to offset the expenses associated with the purchase.
5. You know exactly what you want the house for.
In a city like Torrevieja, the house you buy might not be for you to live in it. Are you looking for an apartment for vacation rentals? Then you need something attractive, close to the beach, and in good condition.
Do you want an apartment to spend the summer in Torrevieja yourself? Consider purchasing one that is close to schools; during the year you can rent it to teachers who are not going to stay all year.
Investigate well the place where you want to buy the house, and the reasons why you want to buy it, and once you’re clear about everything, go to a real estate agent to advise you. That way not only will you ensure the best conditions of purchase, but you will have a personalized advice that will help you find the perfect home.
Did you find the article useful? Tell us in the comments! And if after reading all this you think you are ready to buy your house in Torrevieja, do not hesitate to call us! In Inmokea we guarantee personalized attention and the best treatment.
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