Are you looking at a house? As a first-time buyer, there's a lot to keep track of when it comes to buying a house and investing in real estate. Learn all about the finances involved in buying a home - and get tips on how to save money in the process! ▶▶ https://www.danielspengetips.dk (join my course - 30 minute free demo)💰 💵 Learn all about stocks and investing and achieve financial freedom: https://www.danielspengetips.dk 🎥 Watch my free 30 minute demo of my course: http://www.demo.danielspengetips.dk Subscribe: http://tiny.cc/Sub2DanielsPengetips Support the channel: / danielspengetips Get 250 kr for property investment: https://brickshare.dk/referral/E1C9FD SEE ALSO: ○ How to live for FREE - • How to live for FREE (Guide to Hou... ○ Annual statement / 8 important deductions - • TAX Annual statement 8 deductions you DON'T... ○ Enough money for the rest of your life - • Enough money for the REST of your life (early... What does it take to buy property? 1. Income to cover ongoing expenses Before you even start looking at houses, it is important that you know what your disposable income is so that you don't fall in love with something you can't afford anyway. It is important to know how much you can buy for, or how much it will cost to buy what you dream of. Of course, you must have a high enough income to be able to cover the ongoing expenses associated with owning a home. The expenses are: Loan repayments (repayments, fees and contribution rates) The loan will typically be the largest item. You can of course choose to get a repayment holiday. Ownership expenses. This is a general term for the monthly expenses for the home in addition to your loan. This covers property value tax, land tax (property tax), renovation, rat control, chimney sweeping, expenses for homeowners' insurance and any homeowners' association, etc. Maintenance There will always be maintenance associated with being a homeowner. How much depends partly on the condition of the house, but personally I would say it is a good idea to save 500-2000 kr per month, which can be used for maintenance and renovations. Insurance: Home insurance. Life insurance/cross life - protects your cohabitant/partner. Maybe you choose to get married or have a will made. Consumption (water, heating and electricity as always). That's why it's a good idea to have a budget, and if you need to borrow money from the bank, they will also require you to show a budget. BUT don't fall in love with a property just because you can see that you can afford to pay the ongoing expenses. This does NOT mean that you will be allowed to borrow for it. You must not have a debt ratio that is too high. 2. Debt ratio This is the ratio between 1) your annual income and 2) your total debt. Let's say you have an annual income of 1 million and want to borrow 5 million for a home. Your debt ratio will now be 1:5. As a rule of thumb, loans will not be approved if the ratio is greater than 1:4. You can borrow for 4 times your annual income + savings, so if you earn 1 million and have a million, you can borrow for 4 times 1 million + 1 million, 5 million. Can be influenced by: Historically low consumption Conscious ability to save No other debt High job security You must have cash for 5% of the amount + fixed costs in cash. Fixed costs are: Land registry fee for mortgage deeds (your loan certificates) Land registry fee for mortgage deeds costs 1.45 percent of the principal of the loan plus a fixed fee of DKK 1,730. Both fees go to the state. If it is a home worth DKK 2 million, the land registry fee is approximately DKK 25,000 for the mortgage loan and approximately DKK 7,000 for the bank loan. Both expenses are usually added to your mortgage or bank loan, and you do not need to have saved up for these costs in advance. Land registry fee for the deed 0.6 percent. of the purchase price plus a fixed fee of DKK 1,750. If it is a home worth DKK 2 million, the land registration fee for the deed amounts to (DKK 2,000,000 * 0.6 + DKK 1,750) = DKK 13,750. Exchange rate protection and purchase price guarantee If you would like to lock the loan at a certain rate now, but you only take out the loan in the future. And a purchase price guarantee is a guarantee the bank provides for the seller that you have the money for the home. 3. Tips for saving money: Bank loan! Negotiate - get several offers. On the internet we saw an interest rate of 8-9%, was offered around 5% I think but negotiated down to approx. 3% Commission at the bank. Discount on “property case processing” - DKK 3,600 Deduction for guarantee commission on the provision of a bank guarantee. Remember that all investments involve risk. I am not a financial advisor and the video is not intended as financial advice. 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