The tenant fluctuation and thus the administrative burden but significantly higher. Multi-month rental losses and apartment renovations for tenant changes must therefore be included in the cost calculation. The attributes and location of the apartment also decide on the tenant clientele. For example, if you prefer older tenants, you should not buy a condominium on the eighth floor of an apartment. A visit to https://www.buyingdenvercondos.com/ will answer all your questions.
Nor does a decentralized new apartment with poor transport connections attract young employees. Therefore, do not necessarily look for an investment in the most expensive cities, but calculate exactly which apartments you can afford and what costs you can expect.
- Be more familiar with the local housing market,
- The rental price developments and the question
- To which tenants you want to rent.
An old building or new building
For older buildings, the formula is a rule of thumb. It states that the conservation of a building must cost 1.5 times the cost of construction within 80 years. In addition, historic buildings are often listed as historical monuments, changes to the building fabric are therefore impossible and the renovation effort is higher. Especially energy-saving renovation measures are difficult to implement.
The energy balance, however, is the big plus of new housing.
- The low energy consumption and
- The low additional costs are a striking rental argument.
- In addition, the owners need thanks to new building materials and modern home automation for years hardly maintenance and repair costs.
However, in new buildings functionality is often considered attractive and individual.
Have all costs in mind
Notary and court costs are the least expensive, accounting for an average of around 2% of the purchase price. Really expensive are brokerage commissions and Real estate transfer tax.
These are difficult to calculate because each real estate company calculates the amount of work differently. As a rule, however, the brokerage fee is a maximum of 6% of the real estate value. The land transfer tax is also not uniformly regulated since this tax falls under the sovereignty.
Extension or conversion
Loans and loans can also be applied for acquisition, conversion and modernization measures. In these situations, state support, for example through the house loan, is also possible. It should be noted that these subsidized measures are earmarked for example, to an energetic renovation of your house. Even in the case of capital investments, the size and location of the property are decisive for the expected return.
Finding the right financing
Thanks to the low-interest rates, financing loans are as cheap as never before, making the temptation to buy the entire home on top high. But that is a fallacy. The current interest rate of 0.15% is undoubtedly a part of the cheap loans, but nevertheless, decide the amount of equity and the term on how high the interest rates. Experts recommend an equity ratio of 20% of the purchase and ancillary costs, in order to preserve the chances of a favorable financing loan.
You have received a good offer and would now like to receive a financing commitment from the bank? Then you have to submit numerous documents at the latest. In contrast to house financing, housing finance requires that you have to submit far more documentation. This results from the fact that topics around the condominium community also influence the value of the dwelling, which the bank has to assess.