What are the five factors to consider when buying a property?

 Buying a property is an important step that affects both your finances and your personal time. If you are planning to get a new home or an investment property in 2023, but are not sure what steps to follow, you are in the right place. To that end, we have “outlined” a basic plan for you to follow to make the process easy and enjoyable. 

Financing

The first and most important step after deciding to buy a property is to work out how your purchase will be financed. It is extremely important to decide what funds you can set aside and whether you will use help from the bank or pay with your own savings. In both cases, you should account not only for the property price, but also for the funds you will need for transaction costs, renovation, furnishing, etc. If you are going to use bank financing, we advise you to meet in advance with a loan consultant or a representative of the bank you have chosen, so you can familiarise yourself with the loan terms, interest rates and the amount that could be granted to you. Calculate in advance the total of your monthly income and subtract your regular monthly expenses to determine what amount you can set aside for repaying your monthly mortgage instalment. Only when you are sure that you have the bank’s preliminary approval or that you have calculated your savings properly can you move on to the next point in your property purchase plan. 

Property location and size

Once you have already considered in advance the property financing and the funds you will have at your disposal, you can also calmly think about its location and size. What is it for — for your own use or for rental. It is important to know, as the difference in price can be significant. If you have chosen the home for your own use, think carefully about exactly what your household needs. You should summarise how many rooms, bathrooms and toilets you need, whether you insist on a terrace or balcony, and whether you need a garage/parking space or a cellar. If, on the other hand, you have planned the property as an investment and for rental, it is a good idea to consult a specialist in the field in advance so that they can advise you on what type of properties are most commonly sought by tenants, which areas are preferred, how prices vary, etc. 

Location

Location is one of the factors that drive a property deal. We advise you to choose in advance the areas you prefer to live in. What are your preferences regarding the area — in the more central part of the city or in a peripheral district. Also take into account the possibility of living in the outskirts of and outside the city, as the living conditions are very different and more favourable, and housing prices are comparatively lower. You can see more advice on choosing an area here.

Condition of the home and stage of construction

It is important to mention that property prices are shaped by a number of factors. One of them is precisely the condition of the home. Many of the properties on the market have already had one or more owners, which will certainly require some kind of renovation work or refurnishing of the apartment. As we said earlier in the financing section, these are costs that must be planned for in advance. Many of our clients prefer to buy a home that needs major renovation so they can let their imagination run wild and bring their vision of their dream home to life. These types of properties also offer a lower market price and more room for expression. For more on investing in a home that needs renovation, see here. Another way to save money is to invest in a property at an earlier stage of construction, namely “off-plan”, ACT 14 and ACT 15. In this type of transaction, developers offer different payment schemes at the various stages of the building’s construction, but you need to arm yourself with patience and time, as completion of the project may take a year, two or more. We advise you to consult a professional who will guide you in your choice according to the financial and time resources you have at your disposal. 

Real estate broker

Trust a real estate agency in the process of buying your future home. A professional broker can save you a lot of time, money and subsequent problems with documents, permits, etc. When working with a broker, it is extremely important to define in advance your criteria for the property you are looking for. Share everything with them — what funds you have, what matters to you, which location you prefer. The broker is a good speaker, knows the market well and will certainly defend your rights and wishes as their client throughout the entire process. When the deal is concluded, the real estate agency is responsible for checking the property for encumbrances and preparing all the documents you will need. Get to know our team and the experience of our consultants here.