You are considering making a real estate purchase: Is it in your best interest to dive in as quickly as possible, or would you benefit from waiting a few months? Reflection on a real estate purchase is not always straightforward, as many factors warrant consideration. For example, it’s not just about focusing on the market—you also need to consider your current situation (family, personal, professional) and your short- and medium-term prospects. To help you make the most informed decision possible, here are some useful elements to consider!
The Real Estate Market: Trends and Prices
On the real estate market, prices may tend to rise or fall from one period to another. In any case, it’s essential to closely examine these realities before deciding whether to buy or not: if prices are falling, this likely indicates a more favorable period for purchase.
However, it’s also important not to believe that a rising trend is necessarily prohibitive: if prices are increasing, it may also mean that the rise will intensify in the coming months. In this case, it may be beneficial to expedite your real estate project to secure your house or apartment at the most advantageous price possible.
Faced with either a rise or a fall in prices, consult your real estate agent: they can explain the reasons behind the trend and help you gain a clearer understanding of the scenarios that are emerging for the future.
Interest Rates: An Important Criterion, but Handle with Care
In your reflection on a real estate purchase, you naturally consider interest rates: the lower the loan cost, the more advantageous it is to buy quickly. However, when interest rates rise, buyers are not necessarily deterred: they also know that these rates can be renegotiated later at a more favorable time.
When it comes to mortgage credit, you can also seek guidance from a real estate agent to better understand the market and its prospects. However, for a more precise assessment of the situation, it’s ideal to also seek assistance from a mortgage broker. They can help you search for the loan with the best possible rate, assist you in negotiations, and even help you prepare your dossier for the banks.
Your Situation: An Essential Criterion to Consider
Professional and Financial Situation
In general, banks require a very stable professional situation to grant loans. Specifically, this means having a permanent contract (for employees) or stable accounts for several years for self-employed individuals.
Fortunately, it’s not impossible to borrow without having a permanent contract: banks may be more flexible if you are in a relationship with someone whose situation is more favorable, for example.
Financially, it’s always ideal to wait until you have a sufficiently substantial down payment to support the loan application with the banks. Therefore, it’s generally recommended to take the time to accumulate some capital before embarking on a real estate project.
Personal and Family Situation
In a family, it’s ideal to have as much visibility about the future as possible when making a purchase. To make the choice easier and more comfortable, it’s advisable not to do so at a time, for example, when you are considering changing jobs. The same goes for life and/or family projects: discuss these thoroughly among yourselves to initiate the project in the most informed manner possible.
Regardless of your situation regarding your reflection on a real estate purchase, don’t hesitate to consult a professional about the market, your situation, and the opportunities! They will provide you with information and offer useful personalized advice to facilitate your decision-making.
