
Housing costs often make up a large part of our monthly expenses. So when purchasing a housing it is important to consider not only the cost, but a number of additional expenses, which have a long-term impact on the owner’s budget. The head of Housing loans Swedbank Anne Pärgma shares some of the most important moments that need to consider when planning
the housing purchase. When buying a home it is the needs of your family as a smaller home usually means lower maintenance costs. If you want to get an prediction of what the actual costs will be your utility payments, ask the salesperson to show your past bills, both yearly, and winter. For example, in a poorly insulated home,
heating in the winter months can become unexpectedly expensive. If you are planning to move, it is considered that you may have to manage two real estate properties for a while. For example, a new home may not be ready, while the old old and the new owners want to get into it as quickly as possible. In these situations you should be prepared for additional costs, such
as temporary rental of the premises, possibly even temporary storage of your belongings. When choosing a new home, it is important to attend to the condition of the home. Has it been renovated? Has the roof, plumbing or electrical system been updated? It is also worth asking to know whether the company plans in the nearest time for capital repairs, and how these expenses are distributed between the owners. If You know in advance that the costs will be distributed to the ownersIf your apartment, not by square
meters, you can be prepared for possible disputes in the future. If your home has a low energy class, your winter bills for the community services may be significantly higher than you calculated. Active community and maintained building is a plus.
In the long-term future repair work reduces the costs of electricity and increases the value of real estate. At the same time it should be considered that payments from the renovation fund can affect monthly expenses for many years. Buying a home is not limited to only the payment of the deal. If you buy a home with a credit, you also have to pay a number of one-time costs:
the appraisal report, the payment for the contract, payment for notary services and government duty. Depending on the price of the deal and whether you have already
paid the required mortgage, the cost may change. Don’t be afraid to ask the notary office to estimate the costs in advance to avoid shock to your budget. When moving to a new home, there is often a desire to renovate the interior and buy new furniture. Good planning will help avoid unforeseen or, with hindsight, wasteful expenditures. For now the Euribor rate, tied to the interest rate on housing loans, is now beginning to decline, but the future is unpredictable. Economists are making predictions for the nearest future. But on the average credit for the purchase of housing will be for 26 years. Nobody can tell what will be in 10 or 20 years. If we look at the past, we have had a high Euribor, and
then we have a higher Euribor.Euribor went in minus for almost seven years, which nobody could foresee and never even discussed what would happen if Euribor becomes
negative. Now Euribor is first in plus and is beginning to decline from high peaks. It is therefore important to evaluate whether the payments of a credit will remain affordable, even even if interest rates increase. For example, an increase even by a pair of percentages can significantly increase the monthly payment. It is also recommended to create a financial reserve to cover the monthly expenses for at least three months. Such financial protection will help you to cope better with unforeseen circumstances. When getting a loan to buy a home, it is important to think about how to insure the risk if something does happen to the real estate or the borrower. Insurance –
is the first choice to protect and your property, and insure your life. Insuring an apartment or home protects the owner, and the creditor. For example, a severe fire or water damage could put a family in a very difficult position if the real estate was not insured. But the correct insurance coverage can help cover the costs of rebuilding the home. With insurance
youalwaysneedtothinkaboutwhatcoverageyoumay>need,andgofromthis,notjustfromthemandatoryinsurancethatensuresthatthebankhasthecollateral.Theborrowermustthinkaboutthemselves.Buying ahomeisanimportantdecision thatrequiresthoroughpreparation.Besidesthesale price,itisimportanttoconsidermonthly,andrecurringcosts,theenergy efficiencyofthehomeandanyunforeseencostsinthefuture.WhyThe more carefullyYouplanyourpurchase,themoresureyouwillbesurethatthat thehousingyouchoosewillbesuitableandaffordableinthelong-termperspective,andthatitwillbeenjoyabletolivein.