Buying a home is not an everyday affair. A proper checklist can ensure that nothing is forgotten, overlooked or misinterpreted. Over the whole settlement there are again and again quite important sticking points. Buyers must be sure at all times that they understand all the details regarding costs, financing and signing the contract.
The key points in a nutshell
- To make sure you don't overlook or forget anything when buying a house, it's a good idea to proceed using a checklist.
- At the very beginning you should know the budget, because with the purchase price is not done.
- You can either search and find the right house yourself or hire a real estate agent to do it for you.
- The house as well as property must fit one, but location is also crucial.
Buying a house – a checklist
When making a decision as big as buying a home, it's good to have a checklist on hand to refer back to.
You can find such a list to download here, for example:
https://www.optifin.at/checklist-for-buying-a-home/.
(There the individual points are explained once again in more detail.)
Before the search
Most people get right to work and start the home buying process by searching. The right approach, however, would be to first and foremost obtain information on financing. Better said it concerns the own status quo.
Because before you decide to buy a house, you first need to know if you can afford it at all. This requires two calculations: the determination of the own funds and the calculation of the maximum possible monthly installment.
Calculation of own funds for the purchase of the house
The bank does not finance 100% of the required capital. The borrower is expected (depending on creditworthiness and bank) an equity ratio of 10% – 30% of purchase price plus incidental costs. These must be contributed out of pocket.
Monthly rate
The next question when buying a house must be: How high may my monthly burden be? To do this, create a household budget by adding up all income and subtracting all expenses from it. What is left over can be used for loan repayment.
Calculate budget
This leads us now to the first point on the checklist, namely the budget. We have already mentioned the incidental costs. These are listed once again. The point is so important, because the purchase additional expenses with 10,1 % are not to be neglected. In addition, this is the amount that the bank will never borrow, as this money is lost in any case.
Incidental expenses include land transfer tax, land registration fee, brokerage commission (if applicable), and notary and/or lawyer fees – but in any case, notarization of signatures when the contract is signed. Knowing the total cost of buying a house is also a prerequisite for obtaining financing from the bank.
How to find a suitable house?
Who knows its financial starting position and knows, how the total need with the house purchase is calculated, can make itself also already on the search for a suitable house. Where to find this? On numerous online platforms such as www.willhaben.at or in newspapers, on bulletin boards or sometimes simply by chance.
If this remains without success or you do not have the time to look yourself, you need a real estate agent. Often such a one is also interposed, if one finds the house itself.
Location of the house
In the course of the house inspection(s), you can also get an idea of the location right away. This involves looking at the immediate surroundings, but also at the infrastructure. How is the building connected to public transport?? Are there shopping facilities, doctors, playgrounds nearby? As for the house itself, it's important to assess the condition as best you can.
The size, room layout and the property must also fit your own ideas and needs.
Is the purchase price justified?
This is a very difficult question, but must be answered realistically, even if you have already decided to buy a house for certain personal reasons. Paying more than a house is worth is dangerous for several reasons: if the house was not appraised (by the bank) before the offer was made and it is appraised lower, this can result in the bank not making a loan in the amount desired.
In addition, if the property is resold, it is unlikely that the inflated purchase price can be recouped. This is also the main reason for the bank by the way. But how to evaluate the purchase price? Criteria are: the location, the condition of the building, the size of the plot and the house, connectivity and infrastructure. This can be evaluated by professional experts or you can orientate yourself on the market.
Online platforms make a good price comparison medium. There is also what is known as the residential property index, which gives the local average prices per square meter.
Real estate financing
The following is important:
One should not make a purchase offer if the financing has not yet been clarified.
Financing commitment takes only a few days, depending on the bank. But a binding purchase offer is legally binding. You should not take a risk. First you need to determine the total financing requirements. That is calculated as the purchase price plus utilities (10.1% of the purchase price).
It is also necessary to clarify whether there is not perhaps a housing subsidy for the project. In addition, each borrower must choose between fixed and variable interest rates. This applies to both the mortgage loan and the building society loan. By the way, this is already the next question: Which form of financing suits me?? Another consideration concerns the term. The should always be chosen as long as possible.
However, if you've done your homework ahead of time and determined how high your monthly payments may be, you can easily use that and your financing needs to determine the appropriate term.
Contract signing
The contract for the purchase of a house can be drawn up either by a lawyer or a notary or by one of the two contracting parties. It is advisable to involve the lawyer, if not for the preparation of the contract, at least for the control, so that nothing is overlooked.
A notary must be present when the contract is signed. In fact, he must certify the authenticity of the signature. This formality is necessary in order to register the title in the land register. He or an attorney will also handle the fiduciary process. This means that the legal counsel manages the money and thus ensures that each party also fulfills its obligations.
Entry of property rights in the land register
Even with the keys being handed over, the purchase is not yet complete. The real estate transfer tax still has to be paid (usually the trustee does this) and the ownership rights are registered in the land register. The notary also takes care of this, as well as the payment of the fee. By the way, the right of ownership is not the only thing that can be registered in the land register.
The bank's lien is also entered in the encumbrance sheet of the land register. By the way, this also generates costs. In total, the ancillary credit costs amount to approximately 5% of the credit amount.
Buying a house in Austria – the most important questions about it:
- A checklist can help make such a big step as buying a house less complicated.
- To make sure you don't forget anything, you can go to https://www.optifin.at/checklist-for-buying-a-house/ go through all the to-dos point by point.
- Know your finances before you start looking.
- It is necessary to be aware that the purchase of a house also involves additional costs. (10.1 % of the purchase price)
- You can look for the right house yourself or hire a real estate agent.
- During the viewings it is important to check the house for its condition and to inspect the location carefully. Both have to fit.
- The purchase price should be in line with the market.
- The next step is to clarify the financing: What form do you want, how should interest be paid, and what term do you want to choose?
- A lawyer or notary should draw up or at least check the purchase contract.
- When the contract is signed, it needs a notary to certify the signatures.
- This is followed by registration in the land register. from the buyer's right of ownership and the bank's right of lien