Buying a property is not only a decision that is reduced to economic capacity. There are other equally important factors that will tell you if you are ready to acquire a property or not.
1. You have the initial and a little more.
Well, we have said that not everything has to do with money, but it is a crucial part when making the decision. If you have already begun to investigate how much money you need to buy a house, you should know that you must have between 15% and 20% of the initial amount available since, although it can be financed, it is subject to increases due to labor costs. construction work as well as fluctuations in bank interest and administrative expenses and miscellaneous fees. For this reason you must be covered when making this investment.
2. You have your debts under control.
If your ability to pay is compromised, or you have any type of financing and need a mortgage, you should do your accounts with an accountant or someone with financial knowledge to analyze how this impacts your ability to pay. Banks also have executives who can assist you with this.
When applying for a mortgage, the bank will calculate your borrowing capacity, and for this it will take into account both your income and your debts, and will ensure that the monthly payment does not exceed between 30% and 40% of income net total of the family group.
3. You understand your own finances.
Understanding your expenses and how you manage your income is one of the most important reasons to know if you are ready to take on a responsibility like a mortgage loan. Learning to manage your finances goes beyond generating high income, it means knowing how to generate, maintain and increase your money and knowing how not to over-indebt yourself beyond your capacity.
This implies being correct in terms of the type of debt you acquire and understand what bank interests translate into and how they affect you.
4. You are prepared to settle in a place.
This goes hand in hand with point two. Unless you are buying a house to renovate and resell it, rent it, or as a vacation home, when buying a home you have to be sure that this is the place where you want to settle for at least the next five years.
Even if you plan to sell it, a house is a long-term investment. If you buy it and sell it a year later, it probably hasn’t appreciated enough to offset the expenses associated with the purchase.
5. You know exactly what you want the house for.
In a country like Panama, you don’t have to buy a house to live in it. Are you looking for an apartment to rent on vacation? Then you need something attractive, close to the beach, and in good condition.
Do you want an apartment for seasons for yourself? Consider one that is close to certain amenities or is centrally located; during the year you can rent it to executives who are not going to stay all year.
Investigate well the place where you want to buy the house, and the reasons why you want to buy it, and once you have it clear, support yourself with a real estate agent who assists you, so you will not only ensure the best conditions of purchase, but you will have personalized advice.
If you need help with this, you can write to us at [email protected], and we will be happy to offer you our experience and knowledge in choosing your property.