The building rates for a housing loan have been in the proverbial basement for years and the purchase or construction of a property is therefore very attractive. Home builders can be particularly pleased with the interest rates. However, many are wondering what requirements are placed on housing financing and what must be observed when buying an apartment.
First of all there are questions like – what can I afford? Is own capital required and if so, to what extent? If there is still no shortlisted apartment, the interested parties must first look for a suitable property and there are also some things to consider. As can be easily seen, there are numerous very important questions associated with the purchase of an apartment or house. What these are in detail and how best to finance housing is to be explained in more detail below.
What is a home loan?
A home loan – or, more generally speaking, real estate financing, is an opportunity to take out a loan from a bank in order to raise the necessary debt. Basically, the question arises as to what amount the loan has to be taken out? This in turn is influenced by very different factors. First of all, the size of the apartment required plays a major role in housing financing.
The use of equity capital is no less important – how much and to what extent is it actually available at short notice? Do you also contribute your own renovation and modernization services? The so-called muscle mortgage is also included in equity.
Of course, the location of the apartment should also ensure that the infrastructure around the property fits. How far is the way to work, to school, kindergarten etc. Real estate professionals believe that there are actually only three things to consider with a property. The location, the location and again the location. This is due to the fact that the location of the property plays a key role in determining the selling price if the apartment is resold. In other words, the location contributes to the preservation of value and to the increase in value when buying and financing housing!