2023-10-15 03:01:45
15 Oct 2023
Nowadays, everyone probably knows that we are in an era of rising interest rates. Most recently, on August 2, 2023, the Monetary Policy Committee (MPC) unanimously resolved to increase the policy interest rate by 0.25% per year from 2.00% to 2.25. % per year because inflation is a very continuous problem. In which the central banks of many countries, including Thailand, have had to increase interest rates in order to reduce the heat of inflation.
and to promote economic stability and the long-term financial system Protect against financial risks arising from the imbalances arising from a prolonged period of low interest rates. Of course, interest rate adjustments will cause concern for those who want to purchase a home during a time of rising interest rates. This is because interest expenses will increase as well.
Those who are looking or wanthome loan loanDuring this time, we may have to think hard about what kind of house we should buy to get the most value. Between new homes and new projects Or a second-hand house in good condition? This article will take you to find the answer.
1. Purpose of buying a house
We must clearly ask ourselves: Why did you buy this house this time? For example, if you want to buy a house to live in or invest in, and is it worth going into debt? For example, you want to buy a house because you are expanding your family. Want to buy a condo in the city Because it is convenient to travel Save money on gas, expressway fees, and time costs of life, etc. If we know our purchasing goals clearly. And we saw that this purchase was well thought out. I would like you to consider the second factor next.
2. Financial readiness
Whether we want to buy a new or second-hand home, financial readiness is important. We must have the ability to pay in installments each month. According to current income and expenses That will not cause our financial situation to be difficult in the future. It is recommended that you should not have more than 40% of your income in debt. Additionally, you should have emergency funds prepared for at least 4-6 months of expenses each month. Just in case there is an emergency. The income that used to be received is not coming in. At least there is still money reserved for paying off the house. There is time to be mindful. Prepare to deal with the events ahead.
3. Interest and loan conditions
We should consider the interest rate that we will pay on our home. Because it’s a long-term installment. Therefore, we must compare home interest rates in each financial institution. Including the terms of the loan contract, such as fees and fines.
which in each financial institution There will be different promotions. In some places, the interest rate for the first 3 years is fixed, after which the interest rate is floating. Or in some places the interest for the first 3 years is a floating interest rate. (at a low rate) and when calculating throughout the life of the loan It may be cheaper than a financial institution that provides a fixed interest rate for the first 3 years. Therefore, we must take these things into consideration as well.
Compare new houses vs. second-hand houses. Choose which one is worth the most money in your pocket.
Actually, both types have their advantages. different Let’s see what’s there?
Advantages of buying a new home
1. Get new items, all new materials.
Of course, whether it is the structure of the house Utilities The interior materials provided are new. Long service life
2. There is an after-sale warranty. Defects are inspected before transferring.
Before we transfer that house We can check for internal defects that occur. If there are things that need to be fixed, the project will have them fixed before transferring and signing to receive the house. The project will repair it to be in good condition until we are satisfied. In addition, there is an after-sales guarantee if problems arise, such as cracked walls, electrical and plumbing problems. The home project will come in and take care of it for you.
3. There is a greater chance that banks will grant loans. at a cheaper interest rate
Most new home projects, especially projects from leading developer companies, will already have deals and promotions with the bank. If we have the qualifications that pass the bank’s criteria It will make it easier for the bank to approve our loan.
4. More modern house designs
The house design and decorations are contemporary with the current era. and comes with functions that meet your needs More relevant to the era
5. There is a promotion to help decorate.
Some projects have promotions on decorations such as free air conditioning. Plus, the entire wall is decorated with wallpaper. Or get a built-in kitchen set to entice those who want to buy a house. Make decisions more easily
Advantages of buying a second-hand home
1. Some houses may be ready to move in.
When we make a sales contract We can move in immediately. There is no need to wait for the house to be completed first like some new projects that have a down payment period. Waiting for the house to be completed
2. Know the problem and see the actual condition of the house before making a decision.
Because we have seen the real house. Actual house structure before deciding to buy
3. See the real environment
For second-hand houses Before actually moving in, we can evaluate the surrounding environment of the house to see how pleasant it is to live in, such as the security system. Cleanliness of the surrounding area, neighbors, etc.
4. The price is usually cheaper than a new house in the same location.
Due to past costs, whether it be the cost of land or construction costs in the past were cheaper As a result, most often the price of a second-hand house in the same location with the same size is often cheaper than a new-hand house.
5. Price negotiation is more flexible.
Most of the time, the people who advertise second-hand homes for sale are the owners of the homes themselves. This allows buyers to fully negotiate the price. This may result in getting a second-hand house at a lower price than before. In addition, home buyers generally negotiate to get the price they are most comfortable with. and in the best conditions There are no strict rules for negotiating the price. For example, sometimes the house has defects. We can use our shortcomings to negotiate prices.
Summary of the value of buying a new home vs. a second hand home
From the advantages of a new home and second hand above Try comparing and considering before deciding. Because each person has their preferences. and conditions are not the same Some people like new houses. I like the promotion of free gifts to save on decoration costs. Comfortable with the new structure of the new house. Don’t like the hassle of repairs You may choose a new house. But some people may like the value for money and have a good location. The house structure may require additional repairs, but that’s okay. Because I can manage it. In this way, you may choose to buy a second-hand house, for example.
But it’s important ifhome loan Don’t forget to compare mortgage interest rates. Calculate interest carefully because it is a very important expense. Let’s look at the example below.
If we buy a house for 3 million baht, the loan period is 30 years, the total interest throughout the life of the project is 6% per year, the installment payment is 20,000 baht/month if we pay normally. The interest throughout the loan is approximately equal to 2,559,031.17 baht, combined with the principal of 3,000,000 baht, a total of 5,559,031.17 baht, which means that 1 house priced from 3 million baht will become 5.56 million baht.
When seeing numbers like this, many people may be shocked by the calculated numbers. Therefore, debt management Therefore, it is a very important part for anyone who is planning to buy a house. Krungsri Bank has interest rates on new homes. and second-hand houses are low In addition, approval is fast. Get a maximum loan amount of 110% of the appraised value for a new home plus an additional loan amount to purchase furniture, home decorations, or other necessities for living. Or the maximum loan amount is 90% of the appraised value for second-hand homes. You can see details at Krungsri Home Loan to purchase a residenceAfter we have chosen whether to buy a new or second-hand home, don’t forget to factor in interest expenses as a deciding factor.home loantogether too
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