Start by asking yourself how much money you have to own.
To assess your budget, consider the following:
- How much savings can you spend on your future home or apartment? It is strongly recommended that you have enough savings to cover at least all the costs associated with the purchase or construction of your home.
For a purchase, consider registration fees, notary fees and deed fees. Count 20% of the purchase price of the house.
If you want to build, consider VAT costs. It amounts to 21% of the construction price. Finally, in both cases do not forget the mortgage registration fees if you take out a mortgage loan .
- What share of your income will you be able to devote to the repayment of a mortgage loan ? Generally, it is recommended not to go into debt for more than a third of your income. Put together all the recurring monthly income of your household and divide this figure by three. From this figure deduct the monthly payments of all the loans which still run for a few years such as a car loan or a consumer loan, and you will know how high the monthly payments your household can still support.
One more piece of advice, do not underestimate the other expenses that you will also have to bear by becoming an owner:
- One-time costs:
- Costs of transformations, redevelopment work, paintings...
- Costs of installation, opening of meters, moving...
- And, recurring costs like:
- Common charges (for apartments)
- Insurance premiums (life and fire)
- The property tax
- Recurring bills such as electricity, water, etc.
Keep some savings to cover these charges that will quickly fall on you once your real estate project is completed. As far as recurring costs are concerned, don't forget to take them into account when calculating your monthly budget.
Real estate simulator
Once you have established the amount of your savings for your real estate project, as well as the monthly payment that you can support, you will be able to determine in which price range your real estate project falls. To help you with these clever calculations, we invite you to use the real estate simulator.
