Why do you think you still can’t buy your property? Many people claim that “I can’t save money” or that “there’s never anything left to save” or even that “with what I earn, it’s impossible to think about buying an apartment.” home ownership is not that simple, but what few people understand is that with good financial planning, the dream of home ownership can be realized without compromising your budget.
In this post, we bring you some tips on how you can start planning to get out of rent and conquer your own home. But we have already said that, in practice, it is necessary to consider the particularity of each one and know that, unfortunately, there is no exact formula to follow. You need to adapt our recommendations to your reality, agreed?
Make sure the property fits in your pocket
If you don’t have the total money saved to buy the property in cash and will need to make a loan, first of all, you need to know what your real purchasing power is, that is, how much you can pay for the financed property: total value and parcels.
The ideal is to have saved at least a third of the property’s value, to be able to maintain the financing term around 12 years and with installments in the value of a rent, for example. The monthly payment must not exceed 25% of the family income. In addition, it’s a good idea for a buyer to be able to set aside about 10% of their monthly income for emergencies after paying the installment and all their bills for the month.
To find out better if the property you want fits your budget, go to your bank manager and talk. It will run a home loan simulation based on your income and introduce you to available credit lines and how they work. This simulation will serve as a guide for your savings goal.
Compare interest rates
Once you know how much you can spend and what options your bank offers, you can look to other financial institutions for better terms. Interest rates can vary widely. Be aware: One bank may charge a fee of 9% while another may charge 12%. This difference of only 3% can result in a difference of 25% in the total amount financed at the end.
Understand the expenses involved in buying a property
When financing a property, you need to know all the expenses involved in this transaction. You’ll have to do the financing, check the bank’s fees and all that. But it doesn’t end here. You will also have expenses with the documentation of the property and its registration. That’s when the famous ITBI and the property deed come in, and all this involves expenses beyond the value of the property itself. And these expenses can be quite high. We made other texts to explain you how to register a property and how to calculate the ITBI, they will help you better understand the extra expenses of purchasing the property.
See what your current expenses are and what isn’t essential
We know that saving money is not an easy task. But if you want to make your dream come true or buy your own home, you will have to give up superfluous expenses to save. In order not to get lost along the way, it is important to draw up a very solid and long-term plan, with clear and possible objectives. This way, you will know exactly that all your resignations are for the greater good and a more comfortable future.
Small changes in your routine can translate into very significant savings at the end of the month. Put all your daily, weekly, and monthly expenses at the end of your pencil and start sorting them in order of need. And start practicing conscious consumption. See what’s essential and what can be cut or minimized. End those small daily expenses that at the end of the month eat up your income. Paying advances on credit card purchases, for example, has interest-reducing benefits.
If you think that’s too difficult, it’s worth betting on financial control smartphone apps. And if you want to go even further, Bovespa, among others, offers several short-term financial education courses for individuals. It can be a great option to learn to be more aware of your expenses. On the financial education website, they also provide a very intuitive personal budget spreadsheet. And always keep in mind that all the sacrifices now are for you to achieve your dream in the future.
Find ways to make your money pay off
In addition to saving, start thinking about ways to invest your money and make it pay off. There are different types of investments. Think outside of savings, go after information. Talk to your manager and research the options. It can be riskier investments that guarantee bigger profits, like stocks on the stock exchange, or it can be more conservative investments with more contained profits, like the direct treasury. And it doesn’t have to be just your bank, look for brokers, as they often offer more competitive conditions. Again, Bovespa provides very complete information on this topic.
Choose the property you need
In addition to choosing a property that fits in your pocket, you should look for a property that meets your needs. Market analysts say that the buyer should imagine his life within eight years. Until then, will you be married? Working in the same place? Will the family grow? It is based on this perspective that the choice of property must be taken.
Search about the property and the seller
It doesn’t matter if the house or apartment you’re eyeing is new or used. You must check all the information about the construction company or the real estate agency responsible for intermediating the purchase and can ask for all the documentation that proves that the property is legally registered, without any disputes with the government and that the condominium is up to date. It is your right to have access to all IPTU certificates and receipts.
Think about the location of the property
Location is one of the main factors in the valuation of an apartment or a house, and must be taken into account in the short and long term. Pay attention to transport, commerce, services, security and other factors that can influence the quality of life index in this neighborhood. In addition, you also need to respect your profile: it’s no use buying a property in a bohemian region because the potential for appreciation is high if you prefer the tranquility of a residential neighborhood.