Things to know before buying
We want you to make the right decision
The purchase of a property – whether for your own use or as an investment – is one of the most important decisions you will make in your life. In order to avoid short-circuited actions or a hasty purchase, you should ask yourself the following questions before any purchase and answer them clearly and precisely. They form the framework for decision-making and are the first step in choosing your property.
Do you want to purchase your property for your own use or as an investment?
This is the first fundamental question you need to ask yourself. It makes a big difference whether you want to buy a property for your own use or as an investment since different parameters apply when buying a property for residential purposes than for an investment.
What are your personal circumstances and motives for buying a property, in which phase of life are you?
Personal circumstances of the buyer such as marital status, age or the respective stage of life should be taken into account in the decision-making process. Incidentally, this also applies to real estate as an investment – for example, a young couple may be interested in long-term increase in value, while an older couple may want high ongoing returns.
Which parameters are relevant for the choice of a residential property?
The parameters for choosing your residential property relate in the first place to the property’s infrastructure, such as size, number of rooms, number of bathrooms, floor, kitchen type, floor type, orientation, year of construction and also the running costs. Prioritize: What is most important to you, what can you do without if necessary? Furthermore, you should consider the desired location of the property: In which district, in which neighborhood and even in which street can you imagine your property? In short: In which area would you feel comfortable? In this respect, the connection, infrastructure, social environment, proximity to the workplace etc. also play a decisive role.
Which parameters are relevant for the choice of an investment property?
When buying a property as an investment, the main focus obviously lies on the return from the rent. This depends, among other things, on the location of the property, the infrastructure of the building and its condition.
In addition, it is essential to clarify the following questions in advance: What are the future development plans for the area in question? What renovations and maintenance measures are planned within the property (e.g. replacement of the heating system, installation of an elevator, etc.)? These parameters can have a significant impact on the appreciation of the property. In addition, it must be taken into account what the rent index looks like in the respective area and which rent you can set accordingly for your property.
What is your budget?
Whether it’s equity or financing, buying a property shouldn’t give you a stomach ache, but should feel right at every moment. Therefore, be realistic and evaluate your financial circumstances objectively and carefully. For this purpose, you should ideally consult with an expert (your bank or a financial advisor). When determining your budget, any changes in your financial situation in the near and distant future (salary increases, inheritances, release of funds, etc.) play a role alongside your financial possibilities at the time of purchase. You must also take into account that any purchase will incur additional costs beyond the purchase price: Real estate tax, land transfer tax, notary fees, broker commission, as well as any other costs can add up to 20% to the purchase price, thus significantly increasing the total expenses.
Our expertise - your advantage
Because buying a property is a complex matter
It is obvious: Your dream property must meet your needs – and for a price that reflects the true value of the property. But the second aspect in particular, i.e. determining the value of the property, is extremely complex – and therefore belongs in the hands of a proven expert. The reason: Numerous factors influence the value of a property – and the buyer usually does not have the tools to determine the value in a simple way. A sound analysis by a real estate expert therefore helps to minimize risks, identify pitfalls and pave the way to your dream property. But what does this look like in concrete terms?
First, we conduct a legal and technical inspection of the property you wish to purchase. We check the documentation including the economic plan of the property. In this context, we request the minutes of the owners’ meetings and determine whether there are any obligations to the house money fund.
We also check the renovation status and – if applicable – the rental income. Are there any building defects? Might this result in costs in the near or distant future?
What is the ownership status of the residential units? These questions must always be answered reliably when purchasing real estate.
In addition, it is necessary to examine the condition of the property, electrical systems, plumbing and masonry (e.g. in terms of fungal decay, moisture, etc.).
Finally, we put all this information in relation to the current market situation and the prices of comparable properties.
It is obvious: Determining the market value of your dream property is a complex matter – only through a comprehensive analysis of a wide range of factors can the market value of your dream property be reliably determined – and with EDEL at your side, you can be sure that you are making the right decision. For a good feeling when buying real estate.
