Purchasing your first home is a happy and major step. To ensure this joy does not turn into a headache, it is strongly recommended to be well informed about all the financial implications and to ascertain the required funds are available.
Those with sufficient cash reserves need not worry about the budget. For others, careful planning of the acquisition project is required. Nowadays, all commercial banks on the island offer home loans at very attractive interest rates.
Preliminary calculation
Some financial institutions even offer to finance the entire cost of the property to be bought. But watch out! Do not allow yourself to be lured into such offers until the budget has been carefully planned. To do this, you will need to evaluate several basic criteria. Start by determining the amount of your current monthly expenses and the additional charges you will be able to sustain for loan servicing. This will allow you to obtain an exact indication of the real budget that will suit your requirement.
Tax exemptions
In addition to the actual cost of the property, the budget should consider other factors, including any tax deductions or exemptions you may be entitled to if this is your first purchase. Above all, you must not forget to include the amount of your personal contribution, notary and agency fees (including VAT), property tax, condominium charges, if any, and the cost of any work that may have to be carried out, etc.
Once you have completed this exercise, you are ready to cross that critical threshold that will lead you to that much-coveted title deed!
