The purchase of a house, despite being a happy moment, can also bring several fears and concerns. As it is a very high investment, sometimes it causes some hesitation when making a decision. In the year 2021 alone, the price of houses increased by about 5.7%, and these numbers can make families reticent and question whether they should wait for a possible drop in prices.
So, if you’re thinking about buying a house, but you don’t know if it’s the ideal time, get to know some reasons to do so, regardless of the state of the market.
Pay only the real value of the house
One of the many scenarios in which you should buy a home, regardless of the market, is when the asking price for the home corresponds to its real value. Knowing this value allows you to assess not only what you can afford, but also to guard against situations in which you have to sell it. Although no one wants these kinds of situations, the truth is that the more you protect yourself, the better you will react to an unforeseen event.
For example, if you go through a long period of unemployment and you are forced to sell your house, chances are you will be able to sell it for the same price you paid (or even more), if this was fair. Otherwise, if you have paid an inflated amount that does not correspond to the real value of the home, then it will be more difficult to recover the money. This tip can do it save thousands of euros either in the purchase or in a future sale.
Therefore, bear in mind that there are several factors that influence the price. From geographic location, finishes, age of the property, typology, to factors that, depending on age, can be crucial, such as accessibility. Furthermore, it should also take into account the houses aroundespecially if your home is in better condition or has differentiating elements, such as a swimming pool or gym space, for example.
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House appreciation trend over time
At homes are considered a “safe investment“, as its value tends to increase over time. Although, sometimes, in recession scenarios, its price may temporarily decrease, the trend is for its value to recover as the country’s economy improves.
However, keep in mind that appreciation has nothing to do with inflation. By confusing these two concepts may be harmed in a future purchase or sale. As a buyer, you may be paying more for the property, but nothing guarantees that it has a high price due to its potential for appreciation. As a seller, you may end up going months without selling your home, due to the unrealistic price, as you will be assuming that your home has appreciated when, in fact, it has not.
This means that real estate prices may even rise due to the general increase in prices, such as labor or raw materials, but it does not mean that the property itself has gained value over time. If nothing has changed, namely the location, accesses, new constructions, among other factors, then most likely the price has gone up solely due to inflation. But if there have been positive changes that, directly or indirectly, have affected the price of real estate, then you will be facing a scenario of appreciation.
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Stability and evolution when buying
For most Portuguese families, the Buying a home is one of the biggest “investments” of their lives. Unlike a rented home, having your own home can give you a greater stability and awareness of evolution in life. In practice, you are investing in your future and the possibility of having something of your own, You can make all the changes you want, is one of the factors to bet on the purchase of a house.
However, it is important to remember that this bet incurs costs and maintenance. In addition to the initial values, such as the entry and taxes, must also take into account the monthly expenses. If you have a garden, you will need to mow the lawn regularly, just as if you have wood exposed to sunlight, you have to do the proper maintenance so that it does not get damaged. Even so, provided that you have accounted for all expenses in your budget and that they do not jeopardize your financial stabilitythe investment will be worth it.
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Lower interest rates than other products
unlike a car or personal credit, housing credit has one of the lowest interest rates. This means that “it is cheaper” to borrow money to buy a house than to buy a car, for example. Regardless of the evolution of Euribor rates, the interest payable will always be lower, compared to a car.
Sometimes, this is not easy to understand, as the loan value for the purchase of a home is usually much higher, which makes the installment also higher. Which can create the perception that buying a car on credit is not a “bad deal”. However, if you apply for two credits, one for the purchase of a house and the other for the purchase of a car, the APR applied is quite different.
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Several ways to monetize your investment
There are always ways to monetize your investment. He can choose to rent your house and thus obtain an additional monthly income. If you prefer short-term rentals and your home is located in an area of beaches or a large tourist traffic, you can make it available on online platforms such as Airbnb, and turn it into a vacation home.
In addition to these possibilities, if you have an apartment with one or more parking spaces, you can also rent them.
If your house has a large garden with a swimming pool, You can also earn money by renting it out for special events like parties or even weddings. There are several options to maximize your earnings, some with more associated risk, others with less. Therefore, think carefully.
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Take advantage of opportunities to buy
Whether you want to invest or simply buy your first home, you should always try to take advantage of opportunities. But for that, you must be prepared. This means that, after evaluating the pros and cons, check if it is a good deal. In this balance, you should consider your financial stability, employment, growth prospects, in addition to factors inherent to housing, such as geographic location or its state of conservation.
Opportunities don’t come every day. Buying a home is a huge investment, so some consideration is needed and, above all, a sense of responsibility.. In all investments there are associated risks. The important thing is that you get to know them and feel comfortable in assuming them. If after weighing the pros and cons you feel comfortable, it may be time to move on with the business.
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