Buying a property is an excellent deal! Purchasing assets and leaving rent are smart attitudes for those who want to save money and ensure long-term financial stability. If you are thinking about it, have no doubt that this is the right way.
But other issues can put your investment at risk. Have you ever stopped to ask yourself if it is the ideal time to make this decision or if the purchasing conditions are attractive? It is important to ask the right questions, which will guide your choices towards success.
Want to know what they are? Check out each one below!
Do I need to buy a property now?
Whatever the reason for your decision, you should ask yourself if it is the right time to make that choice. If you finance your new property, you are getting a long-term commitment. There are years (maybe decades!) Paying installments that may, in the future, not be compatible with your reality.
For making decisions without thinking, we often pay dearly: the interest on bank financing is high, and even those made by the Housing Finance System can greatly increase the value of the property. Sometimes, a low purchase price ends up losing its advantages because of the conditions of the contract.
So if it’s not urgent, wait until you’re sure of the best time, or you risk letting hurry hurt your finances.
What benefits will I have when buying a property?
Buying a property should bring benefits – not problems! When making this decision, you need to have some feedback, such as:
- get out of rent;
- increase your income by leasing;
- improve your quality of life;
- save on family travel, among others;
Sometimes, you need to leave where you are not so much for financial reasons, but because the environment is unhealthy or poses risks to residents.
However, it is also necessary to have a positive return on the family budget. The rent you are paying now, for example, should preferably be higher than the installment of the new property, so you will have real savings. Therefore, evaluate what benefits the purchase will bring.
But beware: make this assessment sincerely and don’t fool yourself! If you make this list based on enthusiasm to justify the purchase, you will end up frustrated when you realize that not all the good points have come true.
Why is this an urgent need?
If you are really sure you need this property for yesterday, the question is: why? If the justification is that the price is very good, great! But if you don’t pay attention to interest and costs (such as bank fees), you may end up losing that advantage.
And even if you already have enough money for a cash purchase, consider whether your financial security is not at risk if you become so capitalized. If you run out of extra resources, you may experience difficulties in the face of unforeseen circumstances or emergencies. In addition, the capital used for the acquisition of the property could be being invested, earning interest and working in favor of your retirement.
All of this needs to be taken into account. Unless you are faced with a really urgent situation, in which your family’s safety, health or well-being is at risk, it is more worthwhile to plan for the purchase than to make an unwise decision and regret it later.
Therefore, before hitting the hammer, carefully evaluate the purchase conditions and characteristics that meet your needs. That way, you don’t have to worry about changing houses or making renovations that will bring more costs later.
What is the ideal size for the property?
One aspect that must be considered is the size. Larger families require more space. So, plan the ideal number of rooms and take into account:
- the total number of rooms the family needs;
- the number of suites that the property must have;
- the need for a guest room to receive family or friends;
- the importance of a study area or library;
- the size of the rooms to accommodate your furniture;
- the existence of leisure areas, services, exercise rooms, among others.
Focus on the ideal property and then differentiate between fundamental and optional areas. That way, you will know exactly what you want and you will also be able to set a minimum limit to meet what you need.
In addition to the built space, it is important to assess the need for land left over, which is common when you have pets or young children – so they will have free play areas.
What type of property meets my needs?
In addition to the size, you need to define whether there are limitations on the type of property. Some families have particular characteristics, such as people with limited mobility. In that case, townhouses or condos for sale in Abbotsford BC may impose restrictions. Others value safety and give priority to properties in closed condominiums.
Observe the needs and preferences of your family and set limits for the search, excluding options that do not fit the ideal profile.
Is the property compatible with my standard of living?
Certainly, after sketching all of this, you will have a good view of the perfect property for your family. Now, it remains to be seen whether he is within his financial conditions and standard of living.
Of course, everyone seeks the best possible. It is natural that you want to live in the best neighbourhood, have a house with a pool or search for properties with closets and fine finishing. But think about what is compatible with your budget.
By that, we don’t mean that you should settle for little – none of that! We really have to always want the best. But choosing a property above your means can compromise your investment. Remember that, after the purchase is made, you will be able to pay the installments for a long time. If they are too big a sacrifice, any small slip in control of finances can put everything at a loss.
The unpaid property is subject to repossession and all its planning is in danger of going down the drain. So choose the best possible, but within your financial conditions.
What are the costs of this acquisition?
And speaking of finances, it’s time to assess how much the property you want and need comes out. There are a few options, so start researching the costs for each one.
- in financing, consider the interest rate and embedded expenses. Remember to request the Total Effective Cost information, which is mandatory;
- in the consortium, evaluate the fees charged (administration fee, reserve fund and insurance, when contracted).
- in cash payment, make a parallel with the opportunity cost. See how much your money could be earning during the period corresponding to the payment of the consortium or financing. If the percentage is higher, it is more advantageous to let it profit than to spend it!
In the end, you should always be guided by the option that gives you the most savings.
Can I make that commitment?
If you have analyzed how much each option costs and have chosen the best one, it is time to consult your personal budget. Assess whether the installment fits in your pocket, without prejudice to other commitments made.
Also remember that the purchase incurs other expenses, such as down payment, property transfer tax and notary fees. Any doubts about your ability to pay need to raise an alert, since the main objective of the acquisition is to improve your situation, not the other way around.
After asking yourself all of this, you will certainly feel more confident in making the right decisions. Assess the possibility of investing in a consortium and wait a little while for contemplation, instead of prioritizing an urgency that can be very harmful.
Did you come to the conclusion that you really should buy a home for sale in Abbotsford BC? So, check out everything you need to know about the consortium for this acquisition and make a conscious and smart choice!