Commercial & Residential Properties in BC & Alberta

Learn the most common mistakes and how to avoid them with the professional advice of Yarmoloy Group.

In the same way that we told you what the most common mistakes were when renting a home, we had yet to do the same with the acquisition.

And in this case we are going to go straight to the point to be able to research deeper into the subject since we are, without a doubt, facing one of the most difficult purchase decisions to make. At the end of the day, no matter how much trouble it may cause you to rent a home that in the end does not meet your expectations, it will always be less than the one that buying a flat may cause you.

What you should keep in mind when buying a house

Buying a home is one of the big decisions you make in life. The investment required involves a great economic effort, tying a person to a mortgage for a good part of his life. Hence, it must be taken with great care and avoiding the following errors:

1. Do not add to the amount of the house between 10% and 15% more

It will be what other expenses increase, such as the notary, the property registry, the fees to the community of neighbors or taxes such as the IBI. Keeping this in mind is essential so that the numbers tally when applying for a mortgage and so that your daily economy does not suffer.

2. Do not resort to a real estate or tax lawyer

It is another serious mistake since, in addition to saving a lot of time in bureaucratic procedures, you will be sure that any procedure will be carried out correctly in a timely manner. They can also advise you on everything related to your mortgage.

3. Apply for a mortgage with very long terms

It is probably the most common of errors. Ideally, the terms of the mortgage do not last more than 25 years, in the first place because, no matter how comfortable the monthly payment may be, in the end the house will have become much more expensive.

4. Take out a mortgage that represents more than 30% of your monthly income

It is also something that is often overlooked. We said it when we talked about the mistakes when renting a house and, we maintain it now, even lowering that percentage: in the purchase there are more extra expenses than in a rental, hence allocating more than 30% – 35% of your income is too risky.

5. Request a guarantee from your parents, relatives or friends

It can become a serious problem if, for whatever reason, the situation gets complicated. You will drag others into a debt that is not their problem. It is preferable that at a certain moment you ask them for help if you need it before making them share your responsibilities.

6. Do not negotiate the price with the construction company or the owners of the property

It is another common mistake. It seems that with such high expenses, it does not make much sense to negotiate, but if you are going to buy a house we recommend you try to negotiate before ruling out any option due to its price. Do not go out of your budget but plan it at a given time if you are interested in that property.

7. Do Not going to a real estate agency

Another big mistake that can waste your time and money is not hiring a real estate agency.  In the first place, because the agency knows the real estate market much better than you do, it knows the prices at which homes are moving and what is the best time to buy. They will also be able to negotiate the price with the seller and advise you on all kinds of procedures.


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