Without proper preparation, buying real estate can lead to numerous disappointments. That's why it's crucial to thoroughly prepare your project, especially if it's your first time. Discover our tips for making your purchase a success!
Clearly define your project to buy without making mistakes
Before embarking on the search for the right home, you must ask yourself the right questions, such as:
- What is your search area?
- Do you want to be close to public transport, schools, work, etc.?
- What is your budget?
- What size are you looking for? How many rooms?
- Are you willing to do renovations?
- What will your needs be in 2, 3, 5 years? If you plan to have a child in the years following your purchase, an extra room should be considered.
It's important to define your priorities and the criteria on which you are willing to compromise. Indeed, it's rare to find the "100% perfect property", especially for budget reasons.
Finally, deciding between buying a new or an old property is essential. In the latter, the property is available immediately and cheaper to buy than a similar new one. Conversely, new properties involve lower tax expenses, a modern and functional interior.
Do not overlook aids for your first purchase
To facilitate property ownership for younger buyers, several schemes exist to finance a first real estate purchase. The most renowned is the zero-interest loan, a very advantageous scheme that can finance up to 40% of your purchase: interest-free, it is considered a personal contribution by banks and can be combined with other aids and a conventional mortgage. To benefit, certain income conditions must be met.
If you are an employee of a non-agricultural private company with at least 10 employees, you can borrow between €7,000 and €25,000, with a preferential rate ranging from 0 to 1%. It can finance up to 30% of the total purchase cost, with a repayment period limited to a maximum of 20 years.
Lastly, the Social Accession Loan (PAS) is granted for the purchase of a primary residence, new or old, with or without work, or even a construction project. Issued under income conditions, it can cover 100% of the operation, with a repayment period between 5 and 30 years.
Also, consider inquiring with your municipality, department, or region, which may offer subsidized loans or additional aids.
First-time buyer: carefully prepare your file
As you can see, financing is one of the main success factors for your purchase. That's why we recommend you to well prepare your credit file. Carefully assembled, it will prove your seriousness and contribute to your financing approval.
The file requires a number of supporting documents, including identity documents, work contract, last three months' salary slips, current loan schedules, etc. These documents allow the banker to assess your financial situation.
Consider using a broker, who will approach the banking institutions on your behalf and may secure more advantageous loan conditions. In your budget, remember to anticipate all the costs associated with your purchase: agency fees, notary fees, loan insurance, etc. Finally, don't forget that as a homeowner, you will have to bear the charges and taxes related to your property, such as property tax.