Questions about buying a property
Questions about buying a property
Why is it important? It's easy to forget about some costs when you buy and instead focus on just interest payments. Keep in mind that you will have to pay fees to the tenant-owner association, that you may have to repay the mortgage (amortize), that you may have to pay for renovations in the future, and that there may be other expenses that you would not have when you rent.
Why is it important? Your mortgage rate has a big impact on your monthly cost. Even a small difference in interest rates can lead to large differences in costs over time. If you get a discount on your interest rate, remember to re-negotiate it when the discount ends! If you get a discount for collecting your savings at the bank, keep in mind that you may have to pay more for other services than before! You need to weigh the lower monthly cost against the possible higher cost of other services.
Why is it important? If you are not going to stay long, it may be better to rent. If you stay for a long time, fixed costs for moving become less important. In addition, you reduce the risk that housing prices have fallen when you sell.
Why is it important? If you fix the interest rate, you pay a slightly higher cost per month, but at the same time know what you will pay. With a variable interest rate, you have more uncertainty. If you want to avoid uncertainty, choose a fixed interest rate. But keep in mind that you have to pay to reduce the uncertainty!
Why is it important? In a stressful bidding process, it is easy to put in a too high bid. By asking yourself what the highest price you are willing to pay before bidding starts, you can avoid paying too much.
Why is it important? You can do something else with the money if you choose to buy a slightly cheaper home, or if you do not buy a home at all. You can save money for your pension, invest it in the stock market, go on a trip, or have a larger buffer in case something should happen.