When we consult surveys on dreams or French projects we see that many dreams of buying a house becoming a homeowner is deeply ingrained in people’s desires and fueled by the media and politicians.
There is an eternal debate between being a tenant or being a landlord: The advantage of renting is to be much more free and nomadic. When you do not want to stay long in your main residence or you want to invest in a rental property and buy many goods, then staying a tenant can be a wise choice so as not to touch your debt.
The stubborn argument that we keep hearing is to buy your main home in order to avoid throwing money out the window, it is true that by paying off the monthly payments of a loan you start to invest in heritage.
You will understand, the purchase of his main residence can be questionable on the strategic level but it remains a major concern of the French to shelter his family.
How to buy a house? build? buy an existing house?
1- Define your budget
- budget
- Set your budget to avoid unpleasant surprises
It is an essential aspect of his project, it is what will define your standard of living, what you will have at the end of the month, for many years.
Leave yourself a margin of comfort, try to look at how much you need to live every month, do several simulations: Take each month a different amount from your pay and watch how you fare.
Do not plan for future salary increases, they are hypothetical and will only be a plus and additional comfort. Do the simulations with your current salary.
This budget should not be exceeded for a favourite or for aesthetic or unreasonable choices.
Take into account:
His energy expenses. Depending on the mode of insulation of the zoom property, the production of heating or hot water, the budget will be larger every month.
Taxes: Housing and property taxes can be very different from one municipality to another, even if they are not far apart.
These additional costs can have a heavy impact on your monthly housing budget.
2- Financing
How to finance your project?
It is better to put the maximum contribution to buy a house, finance its cash would be ideal to have no debt but this option is difficult to achieve. It is the opposite when we make the rental investment.
The banker has very precise scales for your maximum debt ratio: He looks at all your income, including family allowances, rental income, thirteenth month etc. But also all your debts (credits).
What is important for him is the remainder to live and not the 33% of debt which we commonly talk about, because a couple who earns 3000 euros per month and another who earns 8000 euros, with 1/3 d they will not have the same amount left once they have paid the monthly payments.
It is important to show the banker that you manage your accounts correctly: No regular overdrafts, no consumer credit for a car or a television.
Similarly, having precautionary savings is a plus and will reassure the banker, just like a stable job. If you do not have all of this you can always hire a broker who has privileged relationships with banks and will save you precious time.
The consultation is free so doing hesitate; he gets paid when you accept the offer he makes to you, by taking a commission. To find a broker nothing could be simpler: The directory or the best-known site: Best rate which references partner brokers. This site also references the rates charged for each region.
For insurance, it is advisable for a couple to insure 1 00% on both heads. You can get a delegation of insurance if you find cheaper elsewhere for the same benefits, this can also be the role of the broker.
If you are not very tempted by brokers and you prefer not to delegate anything, I advise you to do the following. It is also possible to negotiate the booking fees, as well as the free prepayment of the credit with your advisor.