We teach you to choose the ideal real estate investment for you
The decision to buy a home is always complex. Whether you are looking for your ideal home, a second home or a real estate investment, it is a complex operation because you have to handle different factors. Our extensive experience as Mallorca real estate agents lets us provide you with these basic tips. Without a doubt, they will be very useful to you.
WHAT TO ANALYZE TO BE SUCCESSFUL WHEN BUYING A HOME
As we anticipated, there are several elements that you have to assess before buying a house. Our main recommendation, as a reference Real estate in Mallorca, is to advise you to make a smart investment.
This means that, in addition to your personal tastes or the desire to indulge yourself, there are aspects that it is essential that you be clear before making your choice. Without a doubt, these are common in any real estate investment:
- What are you going to dedicate the house to, especially if you want to make it your usual residence
- What is the location you prefer, taking into account the range of services that you need to have nearby
- How many minimum square meters you need and what dimension would exceed your possibilities, both for price and for being able to assume its maintenance and expenses
- What supplies and fittings are essential for you (gas, internet connection ...)
THE BUDGET, THE KEY TO A REAL ESTATE INVESTMENT
Luckily, the real estate offer in Spain is very wide and diverse. This is an advantage for any buyer, as you are more likely to find what you are looking for. But, it is also easier for you to get carried away and assume a greater expense. And, the budget is the unquestionable key that determines whether or not you are right with your real estate investment. Hence, you must calculate it with your feet on the ground and a cool head, aware of your true ability to pay.
After years as advisers to Real estate in Costa d´en Blanes and other areas of the Balearic Islands, we advise you to follow this mini guide to correctly calculate the budget that you can assume in your real estate investment:
1. WHAT AMOUNT ARE YOU GOING TO FINANCE
Yes, there is no more thinking about it, the normal thing is that you have to request financing from a bank to buy your home. In Spain, this is what four out of every five buyers do. That is why it is so important that you know exactly how much to ask for a mortgage to have the easy concession. As a general rule, lBanks do not finance an amount that represents a debt greater than 35% of the applicant's income.
2. CALCULATION OF THE FINANCING PERCENTAGE
In addition to your income, the mortgage is calculated taking into account the price of the house. There are few situations in which 100% of the price is granted in a mortgage and they are usually properties that belong to the stock of that bank. The usual thing is that at most finance 80% of that value, so you will have to have previous savings that cover at least 20% of the price. And, do not forget to add other expenses, such as taxes or notary, which are usually around 10% of the purchase price of the property.
3. WHAT KIND OF MORTGAGE TO CHOOSE
There are basically three types of mortgages that differ in the interest rate that is applied. Each one has its pros and cons, depending on your situation, you will be interested in opting for one:
- Fixed interest mortgage: they are more secure because the interest remains constant all the time. But more expensive, because the minimum interest is 2%
- Variable interest mortgage: a referent, (euribor) is used to calculate the interest. Cheaper (around 1%), but with more risk.
- Mixed mortgage: combination of the previous two. Generally, a fixed interest is applied the first decade and variable the rest.
Let the team of Xarxa Homes be you Real estate in Mallorca. We have the experience and training you need to guide you in your real estate investment. In addition, our catalog of homes is as complete and varied as you need. Discover in our web everything we can offer you.