Buying a home is not something you do every day. Not only is there a hefty financial investment involved, the (administrative) process requires a lot of time and attention. So it is better to be well informed. These 6 steps will get you started.
Are you planning your first real estate purchase? If so, you have a lot of knots to cut. From choosing the region and type of property you want to invest in to determining your budget, getting the right insurance and signing the compromise. Not to mention the effective move... No idea how to get started? Then read on.
Table of Contents
Step 1: Determine your budget
You dream of buying a villa with a pool. But is that a realistic budget? If you want to buy a house, you should decide beforehand what budget you can and want to spend on it. Many of the decisions to be made depend on the budget you have available. We distinguish between:
- The one-time purchase cost
- The monthly solution
One-time purchase cost
The one-time purchase cost is the amount you pay when you sign the deed. Usually this is the budget that you can pay yourself from your own savings, without a third party having to intervene. This budget also determines how much you should and can borrow from the bank.
The following costs should be considered in your budget calculation for the purchase phase:
- The necessary initial capital (minimum 20% of the purchase price)
- Registration fees
- Bank filing fees
- Insurance
- Notary fees
- Any renovation costs
- Decoration costs
- Moving expenses
- Common costs (in the case of an apartment)
- The cadastral income or property taxes
If you want to calculate your budget as accurately as possible, you should ask your bank for help. They determine how much you can borrow, as well as what your monthly repayments will be and the length of the repayment period. Only when you have mapped out all the elements will you get a clear view of your budget.
Monthly repayment
Anyone who takes out a loan will have to pay it back to the bank. Obviously, this amount is too high to repay in one go and it would take you several years to save up the budget. For this reason, you pay off a portion of the loan amount each month for a predetermined number of years.
The calculation of that monthly amount is done by your bank - and in consultation with you. Basically, everything depends on your monthly income: the more you earn net, the more you can pay off monthly and the less time it will take for you to pay off the full amount.
Step 2: Search and find your dream home
Finding your dream home takes a lot of time and often a good deal of patience. Anyone looking for a house or apartment usually searches within a specific region. Of course, first of all, there must be real estate available within that region. If there isn't, there are two options: wait or search within a new region.
But even when there are choices to be made, you haven't just decided on 1, 2, 3. Not only does your choice for a particular building depend on the available budget, but the feeling and vision must also be right. Not entirely convinced? Then it's best to take a closer look before making a final decision.
Things to think about beforehand are:
- Do you choose new construction or do you want to renovate?
- Who should all live in it? Just you? Or a full family?
- Will you go for an apartment in the city or a house on "den buiten"?
- How many bedrooms and bathrooms do you want?
- Do you prefer the vicinity of your work? Or would you rather live closer to your family?
- And what about traffic and public transportation?
- Do you want a single house or a row house? A garden or a large terrace?
- ...
So plenty of choices to break your head on!
Step 3: Negotiate the price
Anyone selling his or her home always has a price for it in mind. And although the asking price is a guide price, as a buyer you are not obligated to pay the amount communicated in advance. Of course, the seller wants the final purchase price to be as close to the asking price as possible.
Nevertheless, in some cases it is possible to get the price down to about 10 to 15%. Here everything depends on your negotiating skills. If your offer is accepted, you are in principle obliged to complete the purchase afterwards. If you don't, you may be charged damages.
Tip: always put your bid in writing. This can avoid confusion afterwards.
Tip 2: Do you not yet have a final proposal from your bank for your mortgage loan when you submit your offer? If so, include the condition precedent in your written offer.
Step 4: take out the right insurance policies
If you buy a home, you also need to take out the necessary insurance. Debt balance insurance is one - if not the most important - of these. It protects you and your family financially should you die. A second type of insurance is home insurance. It is not required by law, but is always highly recommended. Home insurance protects you against fire, water damage, theft, glass breakage....
Tip: compare prices from different insurers before you make your decision. In addition, make sure you are definitely not double covered for certain risks.
Step 5: signing the compromise and the notarial deed
Once you have signed the compromise, also known as the private contract, the final purchase of your home is almost complete. This document is signed by both you, the buyer, and the seller, after which you can take it to your notary. The time between signing the compromise and the final notarized deed is usually 3, maximum 4 months.
Step 6: are you ready to move in?
Behold! All the red tape surrounding the effective purchase of your new real estate acquisition is complete. What awaits you now? The renovation work you want to see carried out. Have you invested in new construction? Then you can move in right away and all you have to do is wait for the move.
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