- New or second-hand, knowing the value of the property can be decisive when negotiating the cost of the new house.
- In order to avoid economic contingencies, mortgage payments should not exceed 40% of the family unit’s income
The neighbourhood in which it is located, the proximity to the centre, the connection with public transport, the services available, the common areas, the square metres, the luminosity of the house… the list of factors to take into account is unlimited, although it is true that there are more and more tools that facilitate this process.
On the net you can find all kinds of instruments and applications, from a mortgage simulator, to be organized in economic terms, to virtual designers that allow you to recreate your home and see if that property you like so much will fit in your new living room. A mortgage simulator can be very useful at the beginning of this process, since depending on the budget you have, it will allow you to resolve the eternal debate: buy or rent?
Buying or renting
How much money do I have to access a property? This is the first question that should be asked by those who are thinking of looking for a new house, the objective will be decisive when it comes to knowing whether to rent or buy. With regard to renting, the tenant should take into account as an initial expense the deposit, the first month’s rent and real estate expenses, if it is managed through an agency.
In the case of the purchase and the consequent mortgage, the new owner will have to face the notary and registration expenses, the tax of documented legal acts, the appraisal, the agency, the VAT, the Transfer Tax of Patrimony (ITP), the registry verification and commissions of opening or subrogation.
Is the price of the house real?
Once the decision has been made, and before embarking on the purchase, it is advisable to know the real value of the home. Although depending on the situation of the real estate market, the price varies considerably, you can consult the value of the property, established according to its location, the value of the construction and other added criteria.
This figure will always be lower than the market price, but allows an approximation of the real cost of the house. Suffolk County NY real estate buyers takes care of this register, as well as other values such as offers of similar and nearby properties, in order to estimate the price that will allow you to negotiate the final value of your new home.
This tool also lets you know what impact the purchase would have on your finances. Once the total cost of the home is known, simulating the amount and conditions of your mortgage is essential for organising yourself in economic terms and making the final decision. According to experts, the payment of a house should not represent more than 40% of the net income of a family, so if through a mortgage simulator is observed that the economic outlay to be made is greater, it would be advisable to look for another residence that fits your possibilities.
A mortgage simulator allows you to know the entrance costs, the derived expenses and the monthly instalments. Depending on the price of the property, the amount requested (it is recommended that it be no more than 80% of the total cost) and the time in which you want to pay, you will know approximately the amount to be paid each month.
The mortgage simulator also allows you to adjust these amounts whether it is a fixed-rate or variable-rate mortgage: in the former, the interest is constant throughout the duration of the loan while in the latter it varies depending on the interest rates, something that can increase the instalment but also reduce it.