You have decided to buy a house and you are starting to get a little scared, because it is among the most important decisions you have ever made. It is also the main investment ever made. You know that often factors of little importance are given without calculating those really important for the purchase of an apartment. Let's see together what are the mistakes that are committed most when buying a house and renovating it.
How to buy a house to renovate
without making mistakes
Buying an apartment means making a big economic effort, committing oneself for a good part of life and involving loved ones. After years of real estate crisis, the market is recovering, the banks have started to disburse loans and the rates are at historic lows. You have understood that it is time for action. The first two things to watch for to avoid buying errors are:
- Do the accounts well. Since you are not a tax consultant, and you do not have a developed financial culture, ask professionals. You will understand if you are taking the longest step of your leg.
- Remember that at the price of the property you have to add about one 10% for expenses. You will have to pay the VAT (if the house is new) or the registration tax (if the house belonged to others), and then there are the cadastral taxes. You will then need a deposit (you will certainly recover it) but it is still an outlay that suddenly weighs on the family budget and is not insignificant.
- Calculate an 10% more than the budget foreseen for the refurbishment and furniture purchase. Although there are restructuring bonus very interesting in this regard that will save you, the house could present structural problems or wider needs than expected. Always keep it in mind.
Buy a house to renovate
: mortgage and ancillary costs
Taken by the enthusiasm or by the tide of chatter of relatives and real estate consultants, the accounts on the mortgage are not done well. A mortgage also involves expenses and taxes. The mortgage tax which generally equates to 2% of the amount of the loan taken out. Then there are some additional bank charges that nobody calculates. Many banks require a sort of "mortgage insurance" to protect themselves against risks such as the loss of a job or the unfortunate death of the contractor. Expense, even if useful, not insignificant.
Before buying a home and budgeting for renovation work, you must consult the notary. He will check the asset before signing deeds such as purchase proposals and preliminary sales documents. In many cases, an expert opinion can prevent unpleasant surprises and give you an idea of your fee if you go ahead.
Have you checked the condominium expenses of your future apartment? The average buyer forgets that owning a home means incurring costs every month and accepting extras decided upon before he arrives. Maybe before your purchase there was a condominium meeting in which it was agreed to renovate the facade, the roof, the antenna, the elevator. You will have to pay, without having decided anything, for years the choices of the previous owner. If you've decided to to renovate a house independent, the costs are often even higher.
The contingencies of the
Buying a house is not like choosing a car. It is a decision that may vary over the next thirty years. In such a long period of time anything can happen and you have to take them into account: births, deaths, divorces, but also job opportunities in other cities. So before you start looking for a home you need to consider the option of living in rent. In Italy, the culture of home ownership is very deeply rooted. However, renting is an option that makes it easy to change jobs, change cities and status. With the money saved from buying a house, you can create a pension fund and still live in peace.
Remember that if you calculate a mortgage over 25 years it is not worth buying. Because calculating all the interests and contingencies the house becomes too expensive.
Have you bought a house and now you want to know what the restructuring costs are to give shape to your dreams?
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