Buying the first property is an investment with a high monetary value and therefore should be taken seriously. Thus, several issues need to be evaluated, because in addition to the financial planning that this undertaking requires, it is necessary to know about the types of financing and rates of deed and registration of properties. In addition, it is important to avoid common mistakes like extrapolating the budget or choosing an unreliable real estate company.
How to buy the first property
Purchasing the first property is the dream of those who want to get out of the rent, in addition to ensuring stability for the family. However, acquiring a home involves long-term financial planning and an understanding of issues such as real estate financing and the fees involved in the process. Doubts like “How much do I need to save?” or “what are the main forms of financing?” are common among those who are going to start this venture. That way, you can consult a trusted realtor to answer your questions and guide the entire process.
In addition, the ideal is to talk to people who have already carried out this type of enterprise. Ask about the choices people made at the time of purchase and what they would do differently if given the opportunity. The internet is also a great source, and blogs like Casa Mineira have reliable information on the purchase of the first property and the bureaucracies involved.
7 tips for buying your first property
The purchase of the first property involves many particular issues, such as the available budget and the expectations of each buyer. However, there are important points that must be analyzed by everyone:
Choose between a new or used property
Today there are great real estate options on the market, whether used or new. The choice between these options needs to take into account the buyer’s urgency. If you need an apartment urgently, ready to live, the ideal is to opt for a used property. On the other hand, projects in the plant tend to be valued at a lower cost and can be a good option for those who can wait longer to move. Another point in favor of new properties concerns modernity and the need for few repairs.
Make a list of needs
An essential point is to establish a list of priorities as to what is expected of a property. For example, couples with young children tend to choose less noisy locations, away from the main roads with a large flow of vehicles. Another point concerns the finishes, for some buyers, elements such as floor material, cabinets in the kitchen or bedrooms and the possibility of renovation are very important. When you pass these points on to your broker, he will search for properties that best suit them.
Determine the ideal location
Location is an important factor when choosing your first property. A well located property usually has a higher value compared to those further away. However, the ideal location also depends on the buyer. Some people choose to live far from the centers, valuing the quality of a more peaceful life, while others prefer to live close to work or to strategic points of public transport such as subway stations and bus stops. For this, it is necessary to analyze your routine and priorities and thus define what is most important and fits your budget.
Make visits at different times before closing the deal
Currently, there are several comfortable ways to get to know a property for sale, such as a virtual tour. Despite these facilities, the face-to-face visit is essential and carrying out it at different times allows you to get to know the dynamics of the region, such as traffic and public lighting in the neighborhood, in addition to the neighborhood habits.
Review the property documentation
Researching the development is very important before buying the first property. The analysis of the property is very important to ensure that it is within the law and can be done by the real estate company or by a lawyer. This investment may seem unnecessary, however, it is essential to avoid future problems.
Do the financial planning
There are several ways to pay for a property, however, regardless of your choice, it is important to have financial planning and save money. That’s because, buying your first property requires an investment that goes beyond the value of the property. Therefore, it is essential to plan the payment of transfer fees and documents. In addition, there are expenses such as moving and in some cases the purchase of furniture and appliances.
For those who are going to buy the first property, there is no possibility to exchange the property. Thus, the option for a financing requires the reservation of an amount to give as input. The amount requested varies around 30% of the final price of the property, however, the greater the down payment, the lower the financing debt will be, in addition to increasing the negotiating power with the seller. Thus, organizing expenses is important because it allows the analysis of what can be saved.
Choose a trusted broker
Choosing a good broker is very important when buying the first property. They can be the key to a smooth and secure purchase since they are specialized in the real estate market, in addition to being the only regulated professional to broker real estate transactions. Therefore, it is important to check if your broker is registered with the Regional Council of Realtors – CRECI. In addition, the real estate broker will be able to answer all your doubts at the time of purchase and will also assist in the bureaucratic procedures of the documentation.
Analyze the market
The dynamism of the real estate market must be taken into account when buying the first property. He is influenced by a number of issues such as the country’s politics and economics and the news can be a good source for deciding whether it is the ideal time to acquire a property. In this way, it is possible to know if the properties of your city are being sold for less than usual values and this can be the ideal time for acquisition. In addition, real estate financing interest rates are also constantly changing and must be monitored closely.
Use of FGTS
The Guarantee Fund for Length of Service (FGTS) is a right paid by the employer to workers who are under the CLT regime. Investing this amount in the purchase of a property is a great option, since your income is low. The fund can be used to purchase a property as long as the buyer fulfills the following requirements:
- Have at least 3 years of formal contract;
- Do not own the property in the city in which the purchase will be made;
- Have not financed any property through the Housing Finance System (SFH)
First property: know the payment methods
There are several payment options in the real estate sector, but if you are purchasing your first property, doubts may arise. The most advantageous alternative is cash payment, as it allows negotiation and obtaining discounts. However, this option does not meet the reality in most people, who do not have such a large amount saved. In this way, financing can be a solution and have several options:
Consortia are an interesting way for those who want to acquire their first property, but are in no hurry to move. This option allows you to split 100% of the value of the residence, without the need for an entry. Their payment is made through monthly installments, but there is no interest charge despite charging an administrative fee. The disadvantage of consortia lies precisely in the time it takes to deliver the letter of credit, which can take years.
As the most popular option on the market, bank financing occurs when a financial institution provides the necessary credit for the purchase of the property. With different modalities, each institution has its rules, terms and interest rates. To analyze which is the best option, most banks that offer this service have online simulations where it is possible to calculate terms, value of installments and the necessary entry.
Financing with the construction company
Many construction companies allow the financing of the properties they sell to be made with their own resources. As companies are very interested in sales and as quickly as possible, their financing is usually more flexible than bank credit. However, the disadvantage to this option is that the payment term is usually shorter.
How First Home Discounts Work
Buying the first property is the goal and dream of many and people save for a long time to accomplish this. However, it is important to remember that acquiring your own residence involves costs that go beyond the value of the property. Costs such as Property Transfer Tax (ITBI), deed and registration fee must be taken into account.
The good news is that the purchase of the first property guarantees the buyer some discounts on fees. They are guaranteed by Law No. 6,941 / 81, which determines that the buyer is entitled to obtain 50% of the costs related to regularization at the registry office. However, there are requirements for this discount to be obtained, such as the purchase being completed by the Housing Finance System (SFH).
Thus, in order to obtain a reduction in the registration and deed fee, it is necessary to declare that you are acquiring your first property through SFH. Most of the time, the bank offers a certificate that can be presented in a notary and the discounts on the first property are granted on the spot. Some states in the country require other supporting documents and it is important to verify this with the financial institution. It is worth mentioning that this documentation must be provided before payment is made.
Main errors when buying the first property
Not searching enough
The main mistake that someone can make when buying the first property is not doing enough research. This type of investment involves long-term planning and therefore, decisions should not be made overnight. Gather as much information as you can, from the average value of the square meter in the desired region and the potential for appreciation of your properties.
Don’t stick to the budget
Staying committed to the established budget is very important when purchasing the first property. Although it is a great investment, making debts larger than you can afford is not recommended. In this way, the ideal property is one that is compatible with your finances and personal life and that is why the ideal is to thoroughly assess whether the total value, installments, fees and interest fit your budget.
Unreliable real estate
Acquiring the first property is a transaction that involves high values. Thus, it is important that those involved in the negotiation are reliable and able to carry out the designated activities. You can check the regularization of real estate with public agencies or choose those that have a history and good reputation. The Mining House Estate, for example, is the largest real estate of Belo Horizonte and selling more properties ready in Brazil. Its portal combines technology and best practices in Internet advertising with other real estate companies with strong operations in specific regions of the country.
Do not consider fees and taxes
This is a very common mistake. Many people usually budget for the purchase of the first property based only on the value of the property. However, many costs and factors can alter these expectations, such as changes in the financing installments, which are not entirely fixed, or the rates, interest, taxes and additional costs of the project.
The importance of good real estate
The purchase of the first property involves several factors and many expectations on the part of the buyers. Therefore, it is very important that specialized and experienced professionals are involved in the acquisition process. A good real estate company has professionals prepared to answer questions and solve bureaucratic procedures that demand extra costs in hiring lawyers.
Casa Mineira has experienced professionals and a solid history in the Belo Horizonte real estate market. You can search for your property on the real estate portal and thus filter prices that fit your budget and the region that best suits you.