If you have already conquered your own home and are thinking of acquiring a second property, you certainly know that this venture has many advantages, either for leisure or to increase your income. However, this step needs to be very well planned, as it is a big project.
Despite having already had the experience of buying a house, now your goals and the market landscape are different, so everything needs to be evaluated carefully so that your investment does not fall apart with your dream.
So we are here to help you! We have selected the best tips so that everything works out in your new endeavor. Is ready? So, come on!
1. Talk to your family
Remember that this new acquisition will involve the whole family. So, keep the dialogue always open and involve the closest family members, such as parents, siblings, husband or wife.
Who knows, maybe there will be good ideas about the project that you had not yet thought about, or new solutions to problems that you had not been able to solve yourself?
In addition, the second property will need to meet the needs of the whole family, since everyone will contribute to reducing the expenses of the current house a little.
2. Organize your finances
The first important step is to clear existing debts. When you buy a second property, you will enter a new debt with very considerable weight. Even if the other expenses are less, the accumulation of debts will strongly affect your monthly budget.
So, if you already have a loan, such as a car or even your first home, it is prudent to assess whether it will be possible to afford this new investment or whether you will need more time to organize your finances.
Having decided this, check if the new property is consistent with its current conditions. In an interview with G1, Andrew Frank Storfer, executive director of Anefac (National Association of Executives in Finance), recommends that the monthly amount paid for the project does not exceed 25% of family income.
Adding real estate financing to the current expenses of the month, the ideal is that over at least 10% of income to be used in emergency situations. This is the indication of Ricardo Kenji, professor at Fipecafi (Foundation Institute for Accounting, Actuarial and Financial Research), mentioned in the same article.
He gives yet another tip: if the buyer has already booked around a third of the property’s value, he will have great chances of maintaining the financing term at around 12 years, with installments close to a rent.
3. Find out about the possibility of financing your second property
Certainly, financing is the most common acquisition model on the market today. Unlike FGTS , which has limitations to be used in the purchase of a second property, the financing can be used in your new venture, covering up to 80% of the property’s value.
Check the payment terms, interest on real estate credit and balance the monthly amount to be paid with the term, which in general reaches 30 years.
4. Make a consortium
As Miguel Ribeiro de Oliveira, executive director of Anefac, affirms, the consortium is, without a doubt, financially better than financing. In this modality, there is no interest, but it requires a little patience since you will need to count on luck to be contemplated.
However, as we are talking about a second property, you may not have as much urgency and can, therefore, opt for this type of long-term investment.
5. Seek expert help
Amid so many values and financing options, it is very easy to get a little lost. Therefore, count on expert professionals, who will know how to guide you on the best solutions that fit in your pocket.
Another tip is to search for good real estate. Some of them will be able to give guidance even on the internet, facilitating the whole process. But don’t forget: check if she is registered with CRECI (Regional Council of Realtors).
If you are still concerned about all the factors involved in purchasing your second property, you may find our Guide to be very useful in minimizing the risks of real estate financing. Download it for free!