House & basic Rheinland gives important tips before you should well inform the purchase of a house or a condo. At the current interest rate situation, the real estate purchase with good preparation can become a profitable long-term investment. However, some basic instructions should be followed. House & basic Rheinland gives tips on the purchase of real estate. The most important question: Can I afford in the long term a real estate? With a few simple calculations to determine his individual options”explains the Chairman of House & basic Rheinland, Prof. Dr.
Peter Rasche. There should be equity of at least 20 percent. Many banks refuse already financing without its own means”, says Rasche. A simple rule of thumb for determining the financial framework: the disposable annual income around a hundred and then divide by the load factor. This consists of the current rate of interest and a repayment rate of recommended two percent. The financing costs should the closing costs for notary and tax, of a total of ten percent of the purchase price and the monthly expenses to be added. Also a reserve in the amount of one euro per square metre for rehabilitation and modernization should be taken into account.
For the price of real estate to add only existing equity. Then, nothing in the way stands a solid financing. Ask not only at the local bank. A database comparison always pays”, advises the Director of House & basic Rheinland, Erik Uwe Amaya. Even in mature allocation of funds, a comparison may be worth. Because many savings in the high interest rate environment were completed, these contracts are no longer attractive. The building society is often offered a rate conversion and thus balance interest rates retroactively adjusted. A conversion is not always pays for itself. Old contracts worth often even the mature concept as a funding component to waive”Amaya says. In a low interest rate environment, care should be taken on long interest rate. Run-time are recommended at least ten years. The repayment rate is one percent the duration should be extended to 15 or even 20 years. Otherwise, by rising mortgage rates, the total financing is at risk”, says Prof. Dr. Peter Rasche. Therefore a repayment of at least two percent and the possibility of unscheduled repayments are recommended. If the asking price is calculated and affordable, the oscillating now on the market can look around. Who wants to buy a property, you need to find the right environment and the right situation. This applies particularly to investors”, explains Rasche. The demand is sharply on the real estate market, especially in the urban centres. Here, the offer is already scarce in some cities. Noise, transportation, infrastructure, development of the direct environment are the most important guidance here. The main argument must be location, location, location”, so quick. The good news is”location found and as investors you want to know if is worth a purchase in the long term, the ratio of annual return must and purchase price are considered. Dividing the purchase price excluding incidental expenses by the well-let and this value is above the national average of 20, an economic return is questionable. Among long-term users of self also the feel-good factor is one of but in addition to the financing, the development is often secondary”Amaya explains finally.