Have you been renting an apartment with your partner for several years? Or are you a bachelor looking for more security? Then it may be time to buy a starter home. Specifically: an affordable house or apartment that allows you to enjoy your first place without financial problems.
At the same time, there are also some risks for the inexperienced prospective buyer. With the following tips you are well prepared for it!
Establish a clear budget
When you buy a starter home, you want it to be affordable in the first place. It is important to have a clear and realistic picture of your budget. How large is your own contribution and how much do you still need to borrow from the bank ? Can you possibly address parents or other family members for financial support? Always have enough financial breathing space to live comfortably. And don’t forget the following:
- Make sure that at least the registration and notary fees are covered with your own contribution. This is also possible through the loan, but banks are less keen on that.
- Once a concrete picture of your own contribution, it’s time for a visit to the bank or lender . That can already give you an idea of the mortgage options. Tip: always do an online simulation in advance and compare!
- Choose a starter home in a price category that is lower than your maximum budget . There are many extra costs (taxes, notary fees, insurance, etc.).
Aim for added value
In addition to an emotional purchase, a starter home is also an investment . You do not want to live there forever, but in the long term you want to exchange the starter home for a larger building. To keep your options as wide as possible, it is important to get rid of your first home for an additional cost. Two tips:
- Are you an experienced handyman? Then it certainly pays to renovate an outdated building. Added value insured.
- Buy your starter home preferably in a booming neighborhood . The value of the houses will only increase.
Debt balance insurance: also for the starter home
You better insure the purchase of a starter home – regardless of the budget. A debt balance insurance is already indispensable. This is not mandatory, but it is the guarantee for a carefree future for your relatives.
With a balance insurance, for example, you prevent your partner from getting into financial trouble if you should die suddenly. Depending on the percentage for which you are insured, the insurer takes over the repayment of the credit in part or in full from him or her.