Mortgage for an apartment?
The most important issue before deciding to buy an apartment, or even before beginning your search, is determining the funds we intend to allocate for this purpose.
If we have decided to finance the apartment purchase with a mortgage, it is essential to check our creditworthiness. BIK, the Credit Information Bureau, may prove helpful. Based on information provided by banks, this institution creates the credit history of a potential borrower. Analyses are prepared based on the data received and made available to financing institutions, which then assess the customer's creditworthiness.
High creditworthiness guarantees that obtaining a loan will be easier and ensures more favorable terms.
An Apartment from the Primary or Secondary Market?
Another important aspect is deciding on which market we are looking for an apartment—the secondary or primary market.
If we want the apartment to be new and furnishing it according to our own preferences is a real pleasure for us, we should focus on the primary market. New apartments mean modernity, high-quality workmanship and numerous conveniences such as lifts, terraces and underground parking. The fact that primary-market apartments have lower transaction costs is also significant—we only pay the notarial fee, and these apartments are additionally covered by warranty and statutory liability periods.
When buying an apartment from the primary market, we receive it in developer finish. Very often, we can arrange the premises according to our own design, but we must take into account the additional costs related to furnishing and finishing it. An undeniable disadvantage of this type of apartment is that most of them are located on the outskirts of cities, where transport infrastructure is not yet well developed, and it may take considerable time before this changes.
Of course, developers also focus on creating new residential areas in city centers, but this involves a higher price per square meter compared with more remote developments.
visualization: Plac Grunwaldzki apartments
If, on the other hand, we want a lower price as well as an attractive location, we should choose an apartment from the secondary market. The main advantage of these apartments is the possibility of moving quickly into the purchased premises. We do not have to wait, sometimes even several months, for the building to be completed and to become the actual owners of the apartment. It is enough to compile the necessary documents and sign an agreement at a notary's office. The greater possibility of negotiating the price is also very important, as is the fact that the area is already fully developed and the infrastructure is well established.
Unfortunately, secondary-market apartments have their disadvantages. One of them is definitely the age of the property. It often happens that these apartments have structural defects, and a significant part of the installations requires replacement. This involves considerable expenses from the renovation fund. Another disadvantage is the high transaction costs. Here, we must be aware that, in addition to the notarial fee, we are required to pay tax on civil-law transactions.
Searching with an Agent or on Your Own?
Choosing the services of a real estate agent brings many benefits. An experienced agent knows the market very well and has numerous contacts, which translates into quickly finding an apartment that meets our expectations. This enables the client to save considerable time.
We can count on professional assistance in completing the transaction and do not have to worry about legal matters, as the agent will take care of all formalities.
Despite the many advantages, some people decide to search for an apartment independently in order to save costs. However, this is very risky. We may often come across properties with an unclear legal status, so:
- check who the current owner of the apartment is
- find out whether anyone is registered at the address
- determine whether the apartment is encumbered by a so-called life tenancy right
- make sure there are no rent or fee arrears
Choosing an apartment is an important decision, so before making it, you should gather as much information as possible to reduce the risk of choosing an unsuitable investment.
You can find more information about financing and searching for an apartment here: https://toscom.pl/news/poradnik-online