The decision to buy your first apartment is a great achievement! Some people manage to realize this dream after working for many years, already having a family and knowing that all the effort has been worth it to get into a home of their own. Other people manage to buy their first property when they are very young, planning for a future with the stability of living in an address of their own. 

In any situation, buying your own apartment comes with a series of responsibilities related to this important acquisition, so doubts can arise about whether you're getting a good deal. If you are in this time to chooseIf you're about to take the important step of buying your first apartment, stay with us, we've prepared a guide to make you feel more secure and prepared before signing the contract.

1 - The right choice

When you think about buying your first property and start researching, you come across dozens of offers. There are different types of apartments all over the city. But which one is right for you? The main points you need to take into consideration are:

• Location: Your new address should be part of your routine in a practical way. Take into account your commute to work, or the number of activities you do before or after work. Do the math on time and transportation costs, for example. Sometimes an advertisement for a property can be very attractive for the price, but it is totally out of your daily routine, in which case evaluate what will be most advantageous.
  Issues such as safety and the level of development of the neighborhood are also very important, not least for the constant appreciation of your property.
• Structure of the enterprise: Your time is valuable! Imagine being able to make it pay by living in a condominium that offers various leisure possibilities, areas for physical activity and even a place to work? It's possible, and often for a more affordable price than you might think! Before you make any kind of decision, know all the opportunities within your reach.
• Planning for the coming years: If you're going to invest in your first apartment, think long term! Number of bedrooms and parking space are the reasons why people need to move more often. Often, an apartment with an extra room will fit into your budget and will give you peace of mind for years to come, without having to think about moving so soon!

2 - Financial planning

Once you've defined your ideal apartment, it's time to look for one that's compatible with your monthly income. The news of frequent falls in the Selic Rate, which in 2020 is expected to be 2% per year, has heated up the real estate market. This means it's cheaper to take out a mortgage, since the interest rate is considered to be the lowest in Brazilian history. 

You can do a simulation with different banks to find out about their offers and possibilities, especially if you already have a customer relationship. 

How do you calculate how much your home will cost? In the more traditional lines of credit, banks assess your monthly income and indicate that the installment of the property should be between 20 and 35% of the gross family income. It is possible to make up the income with your spouse. In a family with a gross income of R$6,000, the mortgage payment should be between R$ 1,200 and R$ 2,100.

If the property is used, you can finance up to 80% of the total value. In the case of off-plan properties, it is possible to negotiate the down payment with the builder during construction, and finance 70% of the property only when you receive the keys.

Therefore, the total amount of the loan will depend on how much you put down, whether or not you used your FGTS and how long you intend to pay for the loan, which can be up to 420 months, the equivalent of 35 years. 

All these calculations can be made using simulations at the various banks that offer housing loans.

• Don't be taken by surprise! When you buy a property, it will be registered in your name at the municipal registry office, and this must be paid as soon as the deal is formalized. The costs of registering the property and the ITBI (Imposto de Transmissão Bens Intervivos) amount to around 5% of the property's value, with each municipality applying its own rates. This means that, for a property worth R$300,000, you'll need another R$15,000 to pay the costs.

It is possible to include these costs in the amount of your loan, so find out when you sign up!

3 - Ready apartment or floor plan?

This decision is very important and is directly related to your time and investment possibilities. If you can wait a few months, it's worth looking for off-plan properties. In this case, you'll be able to pay less for a better, larger property.

When you buy a property on the drawing board, it costs, on average, up to 30% less than a ready-made property of the same size. In this case, your budget can afford an apartment on a higher floor, with more bedrooms and in a better area, for example.

However, if you need a property right away, do a lot of research among ready-made apartments. Sometimes it's possible to get units with planned furniture, air conditioning already installed and other facilities.  

4 - Do I need a broker to buy an apartment?

You can negotiate the purchase of a property without the intermediation of a broker, but it is always advisable to carry out any type of real estate transaction with the assistance of a professional qualified as a broker.

The participation of a broker will facilitate all the processes for the interested parties, whether it's the seller of a used property or the construction company that sells both new and pre-owned properties.

With the participation of a broker in the deal, you will be able to clear up all your doubts about the best interest rate to choose for your financing and carry out a simulation; get to know the property and all its possibilities and also rely on their knowledge of the market to recommend a property that is suitable for your profile. 

The participation of a real estate agent at the time of purchase will make the deal better structured, avoiding having to deal alone with any kind of setback, especially when the negotiation takes place with other people and not with companies.

Security for the best deal

Are you more confident about buying your first apartment? It's natural to have doubts about the process of buying an asset like a property, after all, it's something that will receive your investment for a long time, and which has the great chance of always appreciating when you make a good choice.

Apart from these aspects, are there any questions you have about buying your first property that aren't covered here? Count on us to help you through this process! Leave your comment and participate in this environment, turning it into a space for learning and sharing experiences!