If you want to take the step and buy your first home before age 35, you will have a lot of doubts. What suits me best, apartment, or house? What area do I want to live in? What are the mortgage conditions? Do I sign alone or with my partner? These are common questions about housing for young people.
Adults under thirty-five rarely have the money or the ability to buy housing and generally give up on the dream of homeownership. Here are some essential tips if you are young and want to buy a house.
Housing for young people: what you should know
TIP NO 1. The first thing you should do is calculate, calculate, and calculate. How do you read it? Do not be discouraged if you are of letters. Since you most likely need a mortgage, make your accounts of how much you can pay for a mortgage based on your salary.
A good measure is that your monthly mortgage payment does not exceed 30% of your salary. For example, if your net pay is $ 1,900, it is advisable to think about a mortgage of about $ 570 per month. This is called economic effort.
TIP NO. 2. The second calculation concerning youth housing has to do with the savings you need to apply for a mortgage. Remember that banks usually finance a maximum of 80% of the appraised value of a house. The remaining 20% will have to put it in advance and face certain expenses for the purchase of housing such as taxes, notary, registration, and management.
For example, if you want an apartment on the outskirts of Madrid priced at $150,000, you could ask your bank for a maximum of $ 125,000. At the beginning of signing the mortgage, you should contribute $30,000, not financed plus about $11,166.67 of expenses.
TIP NO. 3. The third calculation to take into account is the so-called maintenance costs and recurring expenses. Independence is a beautiful feeling and having your own home a plus of security, but it costs a lot.
Think about all the expenses of living alone or as a couple and do your calculations well. You could create a spreadsheet or write everything in the same document. Keep in mind taxes, electricity, water, gas, community, transportation, and food bills. It is a good base from which to start.
TIP NO. 4. Once you have made your accounts and want to start seeing the world, choose the area in which you want to live. Remember that you will settle here for many years. Do you like the neighborhood? Does it fit the lifestyle you would like to have in a decade? And in two?
TIP NO. 5. Before buying a home when you are young, pay attention to services such as schools, parking areas, shops, supermarkets, public transport connections, parks, and sports areas. In the end, everything counts and involves a major or minor expense that you should consider before choosing. A trendy area may be fine to go out at night or pretend, but settling is much more than that.
TIP NO. 6 Meditate on what type of housing you need. In other words, the space you need now, and you will need in the future. For the moment, a one-bedroom apartment may be sufficient. However, if you want to start a family, you will need an extra bedroom. Each change of home costs a lot.
On the contrary, it is more important than you think: buying a home for young people that is too big for your future needs will only mean more expenses for both acquisition and maintenance.
We hope that you can jump into the home of your dreams with more peace of mind with these tips.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.