5 initial expenses when buying a home

When buying a house or apartment, it is not enough to have the hitch, it is also important to take into account the expenses initials. The main ones are: down payment, deed, appraisal, taxes and mortgage.

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Where to begin?

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Leonardo González, Real Estate analyst at Propiedades.com, recommends the use of platforms. This helps users have information, before visiting their housing options.

“Once the properties have been identified, a ranking must be made to compare and make the best economic decision. Likewise, it is necessary to have the key metrics of the houses. For example, the security of the area to monitor how the indexes have evolved” he points out.

The expert also suggests defining the term of use and balancing the quality-price factor expected in each option. As well as identifying the funds, benefits and labor rights to acquire a property.

“The listing price is a long-term value, so it is recommended to compare between areas and types of properties at the time of the exercise,” he says.

What are initial expenses

The down payment is the first payment you will have to make to buy a property. González advises that this be equivalent to 15% of the value of the living place. At the same time, you should consider the commission for opening the mortgage. This payment covers the study of expenses and risks, as well as the loan process.

The deeds of your house are another of the initial expenses that you must take into account. This official document gives legality to the ownership of a property and is certified before a notary. Although the cost is high, a higher percentage corresponds to taxes and a sixth to the official’s fees.

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Regarding the appraisal, it is important that you do it through appraisers registered with the Federal Mortgage Society (SHF). With this report, the price of the property becomes transparent and helps to calculate the Income Tax (ISR) and property.

Finally, regarding the taxes corresponding to the purchase of a house, you must take into account the Property Acquisition Tax (ISAI). This amount varies depending on the state where you make the transaction and ranges from 2 to 5.8 percent.

How this is reflected in the cost

According to a simulation based on the Condusef tool, if you want to buy a property with a value of 1 million 452,633 pesos, your initial payments would be as follows:

Contributing a down payment corresponding to 10% of the cost of the house, you would pay 145,263 pesos. In addition to this, the mortgage opening commission will correspond to 1.19%, that is, 27,237 pesos.

On the other hand, the expenses for deed and notarial fees are equivalent to 7% of the value of the house. This means that you would pay 101,684 pesos. Regarding the appraisal, the cost would be 4,939 pesos.

The amount corresponding to taxes and duties – equivalent to 5% of the property’s value – would be 72,632 pesos. To buy a property of this amount, the appropriate thing is that your monthly income is 46,484 pesos. In this way, you can make payments without sacrificing your financial situation.

Strategies to cover startup expenses

Leonardo González explains that the accumulation strategies to pay the initial expenses must be based on objectives of periodic savings and extraordinary income. Which can be Christmas bonuses, bonuses or additional cash flows to the payroll.

To achieve the objective, it is necessary to design a schedule of scheduled payments, giving priority to the settlement of debts. Once there are no additional expenses, it is recommended to start with saving the total sum of these items.

Additionally, and given the nature of buying a home, it is important to consider at least two years of contributions to the savings fund. If you want to reduce the waiting time to start the purchase, you will need to generate new sources of income to achieve the goal.

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