Decision principles when buying homeownership

Especially in today's low-interest-rate policy of the European Central Bank (ECB) many people think about the acquisition of their own property, be it for private use or as an investment. Because while you can earn almost no interest with savings on the bank, the acquisition of your own property by the currently low mortgage rates is an interesting option.

Sound financing as a secure basis

First and foremost is the financial review of the feasibility of real estate purchase intent. For this you should get an accurate overview of the monthly income and expenditure. As a result, you can then use a mortgage calculator on the Internet or by consulting the house bank to check the financial feasibility of real estate acquisition.

New or existing property?

Once the feasibility has been checked and the decision to buy one's own four walls has been made, the question arises as to whether it should be a new building or rather an existing property or an old building. It is important to carefully weigh the pros and cons of these types of property.

An important factor of any property is its centrality and location. Residential property with a good connection to the public transport network and all facilities for daily needs in the immediate vicinity are often much more in demand than real estate on the outskirts or in the countryside. Of course, the property should still be quiet and not on a busy main road despite all centrality. In the case of self-use of the property, you save a lot of time every day for work or shopping. Especially in this day and age, this is a significant advantage. Even in the case of a use of the residential property as a yield object, a much higher rent is to be achieved in such a situation than in the case of peripheral objects. The later resale value also benefits from a quiet but central location. However, since all major cities in these areas are often already built, you can rarely find new housing here. If so, the purchase prices are often very high. Thus, buyers with such requirements regarding the location of a property are often forced to purchase an old building.

Another clear advantage of an old building is that you, as a buyer, see what you are buying. New buildings can only be viewed in the form of illustrations by the architect and floor plans. However, such new buildings also offer the advantage over existing real estate that you can bring in your own wishes and ideas right from the start in the planning phase and thus obtain a tailor-made and energy-efficient property. Current new buildings in your area can be found at // However, considering the pure purchase price, old buildings are also much cheaper than new buildings in comparable location, but these are also expected to be faster and higher repair costs and due to their poorer energy balance with higher utility costs.

The property for self-reference or as a yield object

Whether for self-reliance or as an investment, both models have their advantages and disadvantages. If you move into your own four walls, you will lose the monthly rent. If the property for the whole family but perhaps not financially or not desired, so you can also opt for the purchase of residential property as an investment. Here you get from your tenant a monthly rent, which can be incorporated directly into the monthly loan installment. In addition, you also benefit from tax advantages.

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