Should you put your full contribution into a real estate purchase?
Starting a real estate purchase project is above all calculating its purchasing power.And in this calculation, we often wonder how much real estate contribution is requested by the bank and whether it should be fully included in its purchase.Let's take stock.
Contribution for a real estate purchase: 10% of the minimum purchase price
Is your goal to buy an apartment or a house? It is better, for this, to have a real estate contribution, the amount of which must represent at least 10% of the purchase price.Thus, if the apartment you have spotted is sold for 250,000 euros, you will need a personal contribution equal to at least 25,000 euros.
So start by taking stock of the amount you can mobilize immediately, as a personal contribution as part of a real estate purchase.Beware, however, because some lending institutions set the bar even higher with a minimum personal contribution of 20% the amount of the purchase price.
Another element of the budget: the debt ratio
Also take into account another essential factor: your debt capacity.On this subject, good news: the High Council for Financial Stability (HCSF) has relaxed the conditions for granting mortgage loans from January 1, 2021.banks are authorized to finance a buyer whose debt ratio does not exceed 35% in certain cases, against a maximum of 33% previously
If your energy must be devoted to the constitution of your personal contribution, give yourself the means to reach your goal.And when the sum is deemed sufficient, that the minimum required has been reached, take all the necessary steps.You will undoubtedly have to dedicate a large part of your real estate contribution to your purchase project.
Contribution for a real estate purchase: keep a security savings
On the other hand, if you are lucky enough to have a larger sum, it is advisable not to invest all your personal contribution in the operation.Keeping a security savings is often appreciable, even essential.Your salary, for paying all the irreducible expenses and the repayment of the loan will not necessarily be able to bear, in addition, the payment of additional costs.Keeping part of your real estate contribution, therefore your savings, is a good solution, which will bring you a lot of serenity on a daily basis .
Posted Date: 2021-01-28