Things to know before buying a property

Many people dream of owning their own house in the countryside or a chic condominium in the city centre. However, this dream can quickly fizzle out if you don't have the information you need to buy: what budget do I have, which property is right for me and what do I need to bear in mind with older houses? Are you also thinking about buying a flat, a house or a plot of land? Then the following tips on buying a property will be very helpful for you in the initial phase of your search.

Can I afford a property at all?

Hardly anyone has the full amount needed to buy a house or condominium in the bank. You are probably also planning to take out a loan to finance your dream home. However, there is a lot more to consider here than first meets the eye. For example, if you want to buy a house for €250,000 and have saved up equity of €20,000, you only need a loan of €230,000, right? Unfortunately, not quite.

In addition to the actual costs for the garage, house, flat or plot of land, you will also incur additional costs when buying a property, which you should expect to be around 15% of the property on average. These are made up of items such as

• Land transfer tax
• Land register entry
• estate agent's commission
• Renovations

Ideally, you should be able to pay off the additional costs of your purchase from your own capital. After all, your new property serves the bank as security for the money it lends you. The ancillary costs, on the other hand, are added to the value of your new purchase and are therefore not secured. So if the property of your dreams costs €230,000, you should plan to have at least €34,500 in equity.

Another point that is often underestimated is the right repayment instalment for your loan. A bank may offer you a quick and easy loan that you can pay off at around €600 per month. You'll soon be tempted to grab a pen and sign. However, caution is advised. In such cases, you are often offered a repayment that will make it difficult for you to pay off your dream home within a reasonable period of time and at a reasonable cost. You can find out more about this in the:

CONSUMER ADVICE CENTRE GUIDE

WHICH PROPERTY IS RIGHT FOR ME?

Once you have clarified your financial situation and know within which budget you can search the market, the second important question is: which property is right for you? If you have a small family, a small house with a garden could be just right for you. If the children have already left home, a condominium above the rooftops of the city may also be attractive to you.

In addition to choosing between a flat and a house, you also have to decide between a new build and a second-hand property. Here, too, there is much more to consider than is obvious at first glance. For example, you need good nerves when dealing with construction companies for a building project and should be prepared for unexpected costs.

You can also find a lot of useful information on this topic in the consumer advice centre guide mentioned above.