First home; how can you buy it? The experience of purchasing a home for the first time, be it a house or an apartment, is one of the most special in a person’s life. It is also a decisive decision, and it is recommended to take into account several critical points of a financial, commercial, and legal nature, as well as to carry out a rigorous investigation and have clear objectives in choosing the type and characteristics of the property that you want to acquire.
To make the best decision, find real estate agents. You have to keep in mind issues such as the type and characteristics of the home, the budget; its possible financing, as well as the future valuation, all this to make the best possible negotiation. . In the end, it is not necessary that the closing of the purchase is expensive and extensive, but that it leaves the best feeling since it remembers that said purchase is decisive for the future in the medium and long term.
If you contemplate it, it is not superfluous to have advice in financial, legal, and commercial terms to make an efficient and satisfactory purchase.
Here are some recommendations to take into account when buying your first home.
Define the budget
That is practically the starting point of the entire purchase process. This way, you can accurately analyze the real possibility of being able to shuffle the cards at the time of financing the purchase. Last year the Government issued the decree to grant subsidies for those who want to apply for the acquisition of No VIS housing of up to 500 minimum wages, so it becomes an additional possibility of help.
Do not forget to consider the subsidies and aid to which you can apply, for example, the Government’s Program that facilitates the purchase of a new No VIS home for families regardless of their income level or those offered by the different compensation funds among other possibilities.
“Ability to pay is a simple calculation. It is made from the income of the person or family. For example, if you earn a million pesos, multiply it by 30%, which gives 300 thousand pesos, which means that the payment capacity is a maximum of 300 thousand pesos per month. You must add to the fee if you have debts with free investment, credit, or personal cards. Suppose the sum of all the debts exceeds 30%. In that case, the recommendation is that you do not purchase because by exceeding the payment capacity, the house of your dreams could become a nightmare”, explains a financial coach.
Currently, banks and construction companies have automatic calculators that determine the monthly payment capacity of the person interested in the purchase and the amount of money they can lend to finance the respective project over 10, 15, 20, or more years.
It is the second step to follow after evaluating the budget for the purchase of the home. At this time, it is necessary to resort, if available, to the severance payments and savings, since at the time of acquiring the new property, whether in the long or medium term or immediately, 30 percent of the value must be available. Of the same that corresponds to the initial quota.
It is also possible to acquire the house on plans if you do not have the total value of the initial installment, for which it can be financed or deferred between 1 and 3 years. And then, after receiving the home, you can process the respective mortgage loan to cover the remaining 70 percent.
That is one of the recommendations advised by José Luis Zapata, Co-founder of Bric, a platform specializing in purchasing or leasing real estate.
“If you are thinking of acquiring your first home, in the medium term, we suggest you buy off plans; you can pay the initial fee over a certain period with the builder, and at the end, valuation is earned at the time of receipt. It is essential to evaluate the stability of income so as not to commit to large values in mortgage loans that later generate a headache,” says the expert.
Before committing to a promise of the sale contract or delivering money, ensure you have 100% of the funds or a pre-approved credit.
The chosen house
For this third point, the acquisition of the property, whether used or new, must be considered. Despite the pandemic, 2020 closed with a record for home sales in the country. During the past year, from Real Estate Gallery.
Sold units in the country, indicating a slight contraction compared to January 2020, marked the best historical record at the time. Despite this slowdown, which could be explained by the confinement measures that were decreed in some cities at the beginning of this year, January 2021 is the second best January in the country’s history in terms of home sales,” said the High Commissioner.
This scenario reflects that despite the health contingency, it is an excellent time to decide to take that crucial vital step in the future of families.
Keep in mind that a micro-apartment, one of the recent trends offered by construction companies in the purchase of housing, has also become a new starting point for those who have become independent and, in the beginning, do not require a large area but rather an estate that serves them as savings to acquire, over the years, a larger space.
This market has also become a business and investment since many people buy to rent because there is a growing demand in the country’s main cities, especially among young people, university students, and workers.
Real estate, in general, will always be a good business due to the appreciation of the properties.
An analysis must be made of where will compare it and that the property has greater possibilities of valuation.
When choosing the purchase, you must carefully evaluate the sector in which you want to live to have a better quality of life: proximity to shopping areas, green areas, schools, access roads, transportation, and security, among others. Points. It is necessary to consider an investment thought to cover the need, but do not forget that you cannot exceed the costs to avoid surprises.
Also, remember that a few weeks ago, the Government passed the housing and habitat law, which not only allows Colombians easier access to housing subsidies but also regulates the Rural Housing Policy and improves the municipalities’ territorial planning ability.
It opens the door to conditions related to the terms for mortgage loans, the sale of subsidized housing, and differential benefits for women, teachers, and educational directors of the official sector and young people, among other facilities.
The property has its identification and tradition. The related documents, the certificate of practice and freedom, the last deed of sale, the property tax, and the horizontal property regulations, among other details, should be reviewed, if possible, with an advisor, among further information, to avoid headaches in the future.
Amenities and added value
With the change of life towards virtuality due to the covid-19 emergency, it is recommended to check that the property has the necessary spaces and conditions to carry out daily activities: lighting, ventilation, large areas, green areas, balconies or terraces, and others. . The common areas, the places for entertainment and the possibilities of connectivity must be, at present, the added value when investing.
In times of peak and ID and the respective restrictions, measures that have been imposed by the authorities of some cities or regions due to the pandemic, it is suggested that before physically visiting a new housing project, take advantage of the new digital platforms that allow you to take a virtual tour and make offers without leaving home. Many construction companies already have these applications in use.
“During crises, buying opportunities open up, so it is essential to monitor the market constantly, even if sales prices have not shown significant variations, but great offers may appear.
Take advantage of opportunities.
Amid the restrictions that many consumers have adopted to curb their indebtedness due to the impacts of covid-19 on the economy, the National Savings Fund (FNA) announced a reduction in its interest rates for housing loans. The entity explains that the reductions will translate into lower installments of housing loans and will further facilitate access to credit for Colombians, especially those with lower incomes. The decrease in rates applies to mortgage loans in pesos and UVR for VIS and non-VIS homes and for residential leasing of non-VIS homes. The new rates will be granted upon fulfillment of the conditions by the applicant.
“To help more citizens make their dream of having their own home come true and contribute to the country’s economic reactivation, we have lowered our rates. It is how we provide our affiliates with access to credit at the best time to purchase a home—President of the National Savings Fund. In addition, she explained that “this decision translates into cheaper loans and a greater cash flow that allows us to improve the quality of life of our members,” especially those who are going to buy their first home.
Some banks also offer home loans with lower interest rates to provide additional help to those interested in buying a home for the first time.
For 2021, sales of 209,000 housing units are expected, which represents a growth of 7.4% compared to the figures reached last year. They project 149,700 housing units started, which is 28% compared to the 2020 figure.
These figures present a positive outlook for the housing sector and ratify that, despite the health contingency, there are enormous prospects for purchasing housing and a surge in the construction sector.