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Buying a property - what we need to know

Publish date 06 July 2016
Buying a property - what we need to know image

Buying a property is an important step in everyone's life.

After the sale, the property becomes a home and that is why it is very important for us to know what to look for when choosing.

It is associated with a long-term investment, because most often the purchase is associated with a loan to a bank.

What are the things we need to know when buying a property?

Buying a property is a long-term investment

Some people choose to buy a property for investment purposes. By renting it out, they earn a secure income per month. For this purpose, they choose properties that are the most affordable on the market - usually these are smaller apartments located in key places in the city. In this way, they guarantee a constant rental income, because most people prefer less housing because of the bills during the cold months. Small homes are easier to maintain and more in demand, which is why the prices of one-bedroom apartments are quite high.

The choice of a suitable property is concentrated around the proportion between location-area-condition of the property. Last but not least is the price - it is important, especially when we choose it for investment.

Buying a property on credit
Most people choose a mortgage loan for their new home. The reason is that nowadays all banks offer convenient conditions for loan rescheduling and low interest rates for the first few years. The only catch in this case is that while the mortgage is running, the apartment is not really yours, but the bank's. The other problem is interest. For the first few years, while the mortgage is running, the mortgage client actually pays the interest on the loan itself. How can we ensure security even when we have a mortgage?

By choosing to finance the purchase of your home with a mortgage, you guarantee to the bank that each month you will pay a certain amount, agreed in advance, which will cover part of the loan. But what happens if you get sick or lose your job if you become a victim of vandalism or your apartment is robbed?

In the case of a mortgage loan, the non-payment of more than one installment leads to the seizure of the property. And what are our options if something unexpected happens? How to insure so that in the event of an unforeseen circumstance such as a natural disaster, we do not incur additional debt?

When buying a property with a mortgage loan, it is recommended to insure the collateral itself, ie. the property. In case of earthquake, fire, theft or other disasters, the damage caused to the property is covered by the insurance. In this way you guarantee security and peace of mind. For consumer loans, life insurance is recommended for the person taking out the loan. This is preferable because the insurance covers damages in case of temporary incapacity for work, death and other situations.

Property insurance is protection and security in unforeseen situations. Therefore, if you decide to buy your home, regardless of the loan - insure yourself. Secure yourself and your new home for a better future.