How to buy a property? Leaving rent and owning your own home is the dream of millions of people in Brazil. And if this is also your will, know that it needs to be accompanied by a well-structured plan to finally turn it into reality.
But how to do this planning? What is the step by step? To help you with these and other questions, we’ve prepared a complete guide on how to buy a new dream property with GlemO!
Keep reading this post and check it out in details like:
- Plan financially,
- Choose the best payment method,
- Finding the best builder
- Analyze the best offers for your profile,
- Know the necessary documentation,
- Finalize the purchase process.
The first step to buying your new property is to do financial planning!
When buying a new property, financial planning becomes an important ally to bring even more security and peace of mind when making this investment. Those who plan and manage to save money to buy the new property get greater negotiating power when making the purchase.
Financial planning to buy real estate is the time when you and your family will go through the budget with a fine-tooth comb. After all, it’s time to analyze financial priorities, how much of the budget can be compromised, outstanding debts that need to be paid off, and even how much money your family has to invest at the moment.
Analyzing your family’s financial health when buying property is essential when planning to invest in buying a new property. Therefore, if the family budget is limited, it’s important to adapt it and follow it strictly so as not to exceed the spending limit.
Making spreadsheets for the short, medium and long term can help you understand your expenses and control them as much as possible.
Choosing the best payment method for your needs
To make the best possible investment, you need to know all the payment options available on the market. This helps to keep your budget within the established goal, in addition to saving you on fees and other expenses.
Buy your new property by paying in cash
If you have the amount available to buy the new property in cash, it’s worth looking for the best offers from construction companies. Many offers different values when this payment method is chosen and the savings can be very large when compared to other forms of payment.
Real estate financing: for those who do not have the total value of the property
A Datafolha Journal survey revealed that 52% of people who intend to buy a property in the next two years intend to use real estate financing to make this dream come true.
This data just proves how real estate financing is one of the most common choices for Brazilians looking to buy a new property. And if this is your case, it’s worth understanding the differences between the main types of real estate financing.
The most common is the Financial Housing System (FHS). Through it, it is possible to use your FGTS (Length of Service Guarantee Fund) and savings resources to make it possible to release credit. In addition, it’s possible to finance up to 80% of the value of the property, including ancillary expenses.
If the real estate transaction doesn’t fit the FHS rules, the REFS (Real Estate Financing System) can be chosen. In general, the REFS is used by investors in the sector and to finance properties worth more than 1.5 million reais. In this case, it isn’t possible to use FGTS or savings to deduct or settle the value of the property.
Housing programs
In addition to traditional financing, there are also programs created by the federal government to enable lower-income families to purchase their own property.
Still according to data from Datafolha, of people looking to finance a property, about 26% of them intend to resort to the Casa Verde e Amarela program (a reformulation of Minha Casa Minha Vida).
It’s through this program that families have easier credit analysis, lower interest rates and possible subsidies if they meet the program’s requirements.
Currently, the Casa Verde e Amarela program serves different family groups with monthly income that can reach up to R$ 8,000.00 per month for housing in urban areas.
But, after all, how to choose the ideal method of payment for the new property?
This is a question that has no right answer! This is because it varies from case to case.
If you have the amount available to pay in cash, this is undoubtedly the best payment method, since you won’t pay interest and other expenses arising from real estate financing.
However, if you don’t have the full amount to pay in cash, financing is your best way to conquer your own property in the short term.
But, it’s always important to take into account the total effective cost of the financing – that is: to analyze the costs that are linked to this payment method, such as interest, the cost of insurance and the way of correcting the installments.
Looking for the ideal builder to buy your property
For some people, buying a new property is one of the most important investments they will make in their lives. For this reason, the choice of the ideal construction company must be made with a lot of study, caution and responsibility, seeking to gather as much information as possible about the company’s service.
After all, when choosing the ideal builder or developer, it’s important to select those that offer the best service to the owner, quality and construction reliability – from infrastructure to finishing, commitment to what is in the contract, such as the delivery time.
Because of that, it is important to assess the builder’s image and reputation in the market. At this time, visit properties already built by the construction company, talk to other people who have already purchased properties from the company and search on specific sites about the customer’s experience with the company.
In addition, it is worth inquiring about the quality processes of the builders. The best have international certifications, such as ISO-9001, and national certifications, such as the Brazilian Habitat Quality and Productivity Program (PBQP-H in Portuguese).
The certifications are a guarantee that the construction company follows strict quality and safety standards, as well as well-defined processes to deliver the best product to the consumer. In addition, certifications such as the PBQP-H are required by banks when applying for real estate financing.
Analyzing the best options for your profile: how to choose the ideal property?
The step-by-step guide on how to buy your new property gains a new stage from now on: how do you know which property is ideal for your needs?
We consider three very important points:
- Your financial conditions
With a well-done financial planning, it’s possible to understand what is the value to be invested in your new property. Following it strictly is essential to keep accounts up to date and avoid headaches in the future.
Therefore, the first step in finding the ideal new property is to filter the options by values that are within your financial reality.
- Analysis of the physical structure of the property
Now is the time to analyze the best options within your budget.
When we talk about physical and structural space, we’re dealing with the characteristics of the property itself: whether it’s a house or apartment, number of rooms, parking spaces, whether it’s in a condominium or not, whether the view is pleasant, whether there is a gourmet space and, even, what is the type of finish offered.
Keep in mind a list of what is most important in a property and look for those that offer these characteristics.
Also, it’s important to remember that real estate is very durable, where you will likely live for many years. So, think long term and consider what your future needs will be. For example, if you plan to have children, it’s interesting to think about properties with an extra bedroom or a large room for the child to have where they can play indoors.
- Check if the property offers benefits to your routine
It’s no use finding the perfect property if it’s too far from your work, right?
Therefore, when choosing your ideal new property, evaluate features that suit your routine needs. Check the property’s location, neighborhood amenities, and neighborhood safety, for example.
It is also worth noting whether the property offers new possibilities for leisure. Nowadays, it’s common for many condominiums to have leisure areas so complete that you don’t have to leave the house to go to the gym or practice sports like tennis, soccer or swimming!
Have you ever thought how amazing it would be to have these benefits inside your home?
Selecting the required documentation
After choosing the ideal property, the time has come to continue the shopping process. Now is the time to separate all the necessary documentation and proceed with the purchase. This is one of the most important issues and requires a lot of attention, anyway, all documents need to be up to date.
It’s true that the complete list of required documentation may vary from case to case. However, some roles are the same for everyone.
As an example, we can cite personal documents such as ID, social security number, birth or marriage certificate, as well as proof of residence and income tax. Negative certificates of debts with government and labor agencies may also be required.
The property, on the other hand, must have documents such as the updated registration along with the certificate of encumbrance, deed and the Occupancy Certificate.
As this can be a very extensive list of documents, we have prepared a checklist to make your life easier when it comes to separating the necessary documentation to buy your new property. Just click here to download!
It’s worth remembering that it’s important to include a specific amount in your financial planning to take care of the property documentation. This is necessary, as there are different fees that will need to be paid during the process of signing the purchase and sale agreement, such as the Real Estate Transfer Tax, registrations and deed.
The signing of the contract: the time has come for this property to be yours!
With the necessary documentation in hand, payment method decided, it’s time to close the deal and sign the contract. This procedure must be done with great caution, checking all the sensitive points, data and documentation of the buyer, the property and the seller.
The clauses of the contract serve as a guarantee, security for everyone involved, but above all for you, since you will have all the obligations that the builder or developer must follow to deliver your property as it should be.
With the contract signed, it’s time for the last steps. The first is the payment of the Property Transfer Tax tab. Then go to a Notaries Office to draft the deed.
Finally, if you bought the property in cash, sign the property deed. If you made the purchase through real estate financing, receive the Chattel Mortgage Agreement issued by the bank.
Congratulations!
We know how important this is for you, especially if this is your first property. Therefore, following these tips, buying your new property can be even more uncomplicated, safe and less bureaucratic.
Did you like to know what is the step by step to buy a new property? So be sure to check out other content on the blog, after all, we are “Open Doors” to help you achieve this dream!
