How to save to buy a house: the golden rules

Buying a house is an important but expensive goal. It doesn’t mean, however, that there aren’t clever ways to save when making a property sale. Starting from the expenses related to the purchase, before and after the stipulation.

Here is how to save to buy a house: from negotiating the sale price to unexpected and ancillary expenses, from contractual conditions to choosing the best mortgage based on down payment and duration, passing through tax breaks for certain buyers and buildings.

How to save when buying a house

When buying a house, there are measures that can be taken to save as much as possible. These measures can be taken both before and during the purchase, and all of them can potentially reduce costs.

1. First of all it is advisable to study (or find an expert real estate agent) to know the prices of the area where we want to buy a house, a fundamental starting point to avoid paying too much and to deal with awareness on the price, in light of market values . Once the skimming has been carried out on the basis of one’s own needs and reasonableness of prices, one can move on to actual bargaining.
2. Before proceeding with the purchase process (before signing up to be clear) do a thorough inspection of the house. Even if it costs a few hundred euros, it could also save you thousands of euros if the house has some problems. And if there really is some important critical issue, you can turn in your favor to negotiate on the asking price.

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Cost evaluation

1. In addition to the sale price, the risk of ancillary costs must be avoided : for example, if the house you want to buy is located in a seismic or hydrogeological risk area, you may be forced to purchase high-risk insurance. Not all sellers state this in advance, which is why carrying out neighborhood and property inspections can save you time and money.
2. To save on the installment of the future mortgage, it is important to be able to pay at least 20% of the house price in advance.

How to choose the mortgage to save

Speaking of mortgage , talk to different lenders to make sure you find the best one for your needs. Banks offer different interest rates and loan options: you have to choose the institution that lends itself best to your starting conditions (amount of the down payment, duration of the amortization plan, etc.).

While long-term mortgages (20 and 30 years) may involve lower monthly payments , on the other hand they involve higher interest for the entire duration of the mortgage loan. In some cases, the shorter the loan term, the lower the total interest. If on the one hand this means paying more every month, on the other you reduce interest, saving in the long run .

Before buying a home, it is important to know how much you can afford. In this way you can choose a price range and a mortgage with a monthly payment that you can afford.

Purchase agreement

When you sign the documents for the purchase of a house ( sale ), you are entering into a long-term contract that cannot be canceled. However, before signing, there is always room for negotiation .

If you are not comfortable with any part of the contract, negotiate with the seller. Consider adding a clause that stipulates that the value of the property, based on the assessment of the credit institution, must be equal to or greater than the sale price, so as not to have to pay a larger deposit than expected.

If this is the case, consider hiring an experienced real estate attorney and have them carefully review the contract before signing it. The more you know before buying a home, the more you will be able to save both before and after signing up.

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Save on taxes to buy a house

An aspect that should not be underestimated when buying a house is taxation . In this regard, those who buy a first home can benefit from the relative subsidy. This is a series of tax breaks aimed at encouraging the purchase of properties to be used as a main residence .

For example, with the first home benefits both the registration tax, if you are buying from a private individual, and VAT, if you are buying from a company, are reduced. Furthermore, no stamp duty, special cadastral taxes and mortgage taxes are due on deeds subject to registration tax and those necessary to carry out the obligations at the land registry and real estate registers.

These benefits, in general, apply when:

• the building you buy belongs to certain cadastral categories: A / 2 (residential type); A / 3 (economic housing); A / 4 (popular housing); A / 5 (ultra popular housing); A / 6 (rural dwellings); A / 7 (houses in small villas); A / 11 (houses and accommodation typical of the places). The first home benefits are not allowed, however, for the purchase of a home belonging to the cadastral categories A / 1 (stately homes), A / 8 (homes in villas) and A / 9 (castles and palaces of eminent artistic and historical merits).
• the building is located in the municipality where the buyer has (or intends to establish) his residence or works;
• the buyer complies with certain requirements (not being the owner of another property in the same municipality and not being the owner of property, use, usufruct, dwelling or bare ownership rights over the entire national territory, on another property purchased, even by the spouse, taking advantage of the concessions for the purchase of the first home). From 1 January 2016, the tax benefits are also recognized to the buyer who already owns a property purchased with the concessions, provided that the house already owned is sold within one year of the new purchase.