Buying a real estate is often a key step in life, whether to become a owner or to invest. However, it is a complex approach that can involve traps. From selecting the property to obtaining the loan, many mistakes can be made, and some can have a serious impact on the profitability and success of your project.
Here is a list of the most common mistakes to avoid when buying a real estate, and tips to help you make this purchase a success.
Do not properly evaluate its budget
Overvaluation of borrowing capacity
One of the most common errors is that misappraisal of budget. Many buyers make the mistake of focusing only on the price of the property without taking into account any ancillary costs, such as notary fees, agency fees, or the necessary works. These costs can quickly increase the total amount to be paid.
Tip: Carefully evaluate your borrowing capacity taking into account not only the price of the property, but also the associated costs and future expenses (land tax, co-ownership charges, works, etc.). Don't forget to leave room for manoeuvre in your budget to deal with unforeseen events.
Not taking into account the debt ratio
Another mistake is to neglect the debt ratio. The latter must not exceed 35% of your monthly income to obtain a real estate credit in good conditions. Failure to comply with this rule could result in a loan refusal or make your finances unstable.
Tip: Make your calculations carefully and make sure that the monthly credit will not increase your budget too much. It is essential to anticipate in order to avoid financial difficulties.
Buy on a head start
Do not properly analyze the real estate market
Many buyers rush to a real estate without having studied the local market. This error may result in paying for a property that is more expensive than it actually is, or in buying in an area where demand is low, making it difficult to sell or rent.
Tip: Take time to compare prices of similar goods in the area where you want to buy. Research on market developments, future urban planning projects and the quality of life of the neighbourhood. It is also wise to consult with professionals to obtain their opinion.
Falling in love with a good at first glance
The real estate can be dangerous if you are not vigilant. Emotion can sometimes cause you to ignore certain details, such as the general state of the good or hidden problems (humidity, insulation, etc.).
Tip: Even if you like a good very much, it is important to Keep your head cold and complete all necessary checks before you commit. Do not hesitate to visit several properties to compare.
Neglecting legal and administrative aspects
Do not read the sales compromise carefully
The sales compromise is a Legal commitment important, and not reading it carefully can lead to bad surprises. Some clauses may be in your disfavor, or contain information about the condition of the property that was not discussed during the visits.
Tip: Read each clause carefully and do not hesitate to seek advice from a notary or a lawyer if certain terms seem vague or complex. You can also request changes or additions before signing.
Forget to check the legal status of the property
Some real property may be subject to particular constraints, such as easements or rights of passage, which may limit your property rights. It is also essential to check whether the property is subject to a condominium and what the related expenses are.
Tip: Find out more aboutlegal status of the property Before you commit. Ask for information on servitudes, possible legal proceedings in progress, and condominium if the property is concerned.
Do not perform a complete diagnosis of the good
Neglect technical inspection
One of the major traps is to underestimate the importance of technical diagnosis Real estate. Mandatory real estate diagnoses (DPE, asbestos, termites, etc.) provide an initial indication of the condition of the property, but there may be other problems not covered by these diagnoses.
Tip: In addition to regulatory diagnoses, use a Building expert to assess the overall condition of the property, particularly if work is required. This can avoid bad surprises and unforeseen expenses after purchase.
Forget renovation or maintenance costs
Many first-time licensors forget to budget for renovations or maintenance Good. Even if the property seems in good condition, work may be required in the medium or long term to maintain the value of your property.
Tip: Integrate from the start a safety margin in your budget to cover any work to be carried out. Better prepared than having to contract a new loan for early renovations.
Malnegotiation of the terms of the mortgage
Do not compare loan offers
Do not take the time to compare real estate loan offers is a common mistake. Each bank offers different terms in terms of interest rates, file fees and insurance.
Tip: Make competition between several banking institutions and do not hesitate to consult a real estate broker. It can help you get a better rate and more advantageous conditions.
Do not anticipate loan clauses
Certain loan clauses can have a significant impact on your finances. For example, early repayment penalties or the conditions for modulation of monthly payments can be penalising if they are not adapted to your situation.
Tip: Check terms of the loan in detail before committing and discuss the terms with your bank advisor. It is important to understand all the implications of your real estate credit.
Summary of errors to be avoided
| Error | Solution |
|---|---|
| Misappraisal of budget | Take into account all ancillary costs and calculate the debt ratio |
| Buy on a head start | Analyze the market and compare goods before deciding |
| Neglecting legal aspects | Read carefully the sales compromise and check the legal status of the property |
| Do not perform a complete diagnosis | Use a building expert in addition to mandatory diagnostics |
| Malnegotiation of the terms of the mortgage | Compare several offers and check the terms of the contract |
In conclusion, buying real estate requires preparation and vigilance. By avoiding these common mistakes and surrounding yourself with good professionals, you will put every chance on your side to succeed in this investment and avoid bad surprises.
