The purchase of a house is one of the most important decisions and probably the main investment in the lives of most Italians and, nevertheless, the same mistakes are frequently made. Buying a home is a big economic effort and sometimes we are engaged in a good part of life.
After years of crisis, the real estate market is catching up in Italy.
1. Generally, the accounts are not good. In Italy, according to various international studies, we do not have a financial culture. Buying a house is the biggest investment for many Italians, but we do not have enough financial preparation to deal with it.
2. Many people forget that at the price of the property you have to add about 10% for the expenses. In addition to the VAT (if the house is new) or the registration tax (if the house is second-hand), there are cadastral taxes.
3. There is no account on the loan, which also involves expenses and taxes. The mortgage tax usually applies 2% of the amount borrowed, not to mention that many banks want mortgage insurance, which serves to protect against risks such as the loss of employment or death of the policyholder. It’s useful, but it costs, and much.
4. Taxes and additional expenses. The buyer forgets that being a homeowner means paying condo fees each month and other extras that can dramatically increase the price. Houses need maintenance, not to mention common expenses (facade, antenna, elevator, etc.). In the case of an independent house, the costs are even higher.
5. Money for furniture and contingencies. When you make a budget, you add the expenses for furniture and additional funds for contingencies that do not have to do directly with the house, like breaking the car two months after buying a house.
6. Do not ask for a report on the taxation of the property. 99% of people who buy a house do not inform themselves in advance of the fees to be paid.
7. Do not rely on Euribor in the case of a variable rate mortgage. If Euribor is at its lowest, we must also consider when it will be the highest.
8. Apply for a mortgage with long maturities. More than 25 years, it is not practical to buy: by calculating all interests, the house becomes too expensive.
9. Make debts greater than 30% of your income. The Bank of Italy suggests that the share of the loan, added to the rest of the debts (the payment of the car, credit card, personal loans) should not exceed 35-40% of the income of the mortgage borrower.
10. Ask for guarantees from parents, friends or relatives. Those who decide to buy a house should take their responsibilities.
11. Often those who buy lose the meaning of what it means expensive or cheap. You need to research statistical information and compare market prices. You can find information in many ways, from the local branch to the Bank of Italy, but also through real estate portals.
12. Many buy a home thinking that prices are still rising. The latest experiences have taught us that the value of homes does not always improve, but it seems that not everyone wants to understand it.
13. Do not listen to the agencies. At the moment, you can save money through an agency. Negotiate, and the agents know it well. For this reason, they may have more room to lower the price and convince the seller to substantial discounts.
14. Do not negotiate the price until the end. Many potential buyers give up some properties because they think they can not cope with the price. Prepare to negotiate and always have a counter-offer available, but always after counting. Another mistake is to accept a contract for fear of losing the house. If your budget is 180,000 euros, for example, do not move from there. If that’s not enough, it’s not the house for you.
15. Let yourself be emotionally transported. Sometimes buying a house is a more emotional than rational decision and the purchase is then wrong. If you feel tired or unmotivated after months of searching, it will be easier to decide badly. Take the time to think.
16. Thinking that prices will not go down and so rush. There is still no clear data to speak of a widespread price recovery, but only a few partial data confirming that certain areas have held. If the center of Milan or Rome has increased, it is not granted that the same thing happens in the suburbs.
17. Speculate on the house. The house must be a good use. If we buy it to live, there is a relative problem, since, at least, it solves the housing problem. But if we buy it to speculate and things go wrong, we will have destroyed our finances for many years.
18. Do not consider whether it is worth living on rent.
19. Buying a home is not like buying a car. It is a decision that can have repercussions over the next thirty years, a period when anything can happen: births, deaths, divorces, job opportunities in other states or in other cities.
20. Not consult the notary before signing important documents such as purchase proposals and a preliminary contract. For example, not everyone knows that donated goods are liable to an action for revocation by the heirs who have been wronged in their rights. For this reason, many banks do not lend for the purchase of property from a donation. In this case as in other cases, the opinion of an expert can prevent any bad surprise.