10 questions to ask yourself before buying

What questions should you ask yourself before buying? This stage can be stressful when you are not familiar with the subject. J&J Properties helps you ask the right questions, giving you some peace of mind and putting you on the right track.

REGARDING TIMING

・ What is my purchasing power? Is my budget sufficient?

Answering this question is essential before buying. According to some banking sources, borrowers commonly spend between 30 and 50% of their income on their mortgage repayments.

・ What about tax?

Bear in mind that legislation concerning loans has recently been devolved to the regions. Previously, taking out a loan allowed you to reduce your taxable income. Today, there are three completely different property tax regimes.
In the Walloon Region, the “housing allowance” applies, entitling you to tax relief if your income is below 81 000 €. The maximum reduction is 1520 € per borrower. It is limited in duration and is not index-linked.

In Flanders, there is still a “housing bonus”, which consists of a reduction in the total amount of tax payable. The maximum amount is 1520 €, increased by 760 € during the first 10 years of the loan and by 80 € if there are at least 3 dependent children. Ultimately, the housing bonus results in a 40% tax reduction.
In Brussels, there is no longer any tax advantage. However, the registration fee allowance is higher than before for a first purchase. Since 1 January 2017, you may therefore benefit from an allowance of 175.000 €, subject to certain conditions.

・ How many years do I intend to live in this property?

It is important to ask yourself this question to determine whether your property will be profitable. If you know that you will leave within 5 years, consider assessing its rental value. Will this rent cover the loan I have to repay each month? Or, if you intend to resell it, will it be worth at least the price you paid for it?

REGARDING THE TYPE OF PROPERTY

・ How much space will I need in the medium and long term?

Buying a property raises other questions about your life. You should try to picture the years ahead: do you want to have children? Are your children old enough to leave the family home? Would you like to be able to host guests at home?

・ Flat or house?

Again, this will depend on your needs and preferences. Would you prefer a home in the city or the countryside? Something practical or something cosy?
Remember that when you buy a flat in a co-owned building, you also acquire ownership shares in the building.
You must therefore take account of everything surrounding the flat: the building’s general plumbing, the roof, the caretaker, whether or not the lift complies with regulations, the façade, etc. It is also essential to pay attention to the co-ownership’s reserve funds, as these funds cover future works.
It is also important to review the minutes of the Annual General Meetings and Extraordinary General Meetings held over the last 3 years. This will give you a clear and comprehensive overview of what is happening within the co-ownership.
These documents must be made available to every prospective buyer.

・ New-build or existing property?

It is very important to ask yourself this question when conducting your search. There are therefore two things to bear in mind:
Firstly, while a new-build property offers you the luxury of a home requiring no work and complying with current standards, remember that you will pay 21% VAT instead of the usual registration fees.
Secondly, an existing property has the advantage of often being cheaper and more widely available, but do not underestimate the mental burden involved in renovating it or adapting it to your taste.
More advantages and disadvantages here.

・With a balcony, terrace, garden (orientation), parking space, garage or lift?

What other features are important to your lifestyle? Is being able to have lunch outside essential? Is a small terrace sufficient, or do you need a larger garden? Would you like to be able to do DIY and have a dedicated room for it? Do you need a lift to make getting around easier?

・ What is the average price per m² for this type of flat or house?

Carrying out a brief market study of land prices in the area you are considering will give you a good idea of the local market.

AND THEN?

・ What are the additional costs payable when purchasing a property?

Property tax
Insurance
Application and valuation fees
Notary’s fees and expenses
Taxes: these include registration duties, mortgage duty, stamp duty and any applicable VAT

・ What should you know about co-ownership?

The joint management of a building is not always easy, but it is very important to be actively involved.
This requires an investment of both time and money. Each owner is required to attend general meetings or, in any event, to be represented at them. Funds must also be set aside for the common areas. If renovation work affecting the entire building is required, such as work on the roof, for example, this money will be used to pay for it. Common charges and insurance for the common areas must also be taken into account.

In conclusion, it is important to ask yourself the right questions before buying so that you do not make an offer beyond your means, which would leave you unable to meet the repayments on a loan. Do not forget to take into account what are commonly known as additional costs. As for the rest… trust your instincts too!

Sources:
https://www.immobilier-danger.com/Premier-achat-immobilier-25-244.html
https://www.selection.ca/maison/15-questions-a-se-poser-avant-dacheter-une-premiere-maison/
https://www.vousfinancer.com/credit-immobilier/guides/achat-immobilier/appartement
https://www.notaire.be/

Now that you know the right questions to ask yourself before buying, if you would like to find out more about the latest developments affecting the property market, we invite you to browse our blog, which is packed with interesting articles. And if you would like to daydream a little about properties, view our available properties.