GUIDE TO BUY PROPERTIES

CONSIDERATIONS BEFORE THE PURCHASE

Before carrying out the sale and purchase operation, it is important to take into account some factors that will determine the purchase of the desired property, because when engaging in a 10, 15, or 20-year loan it is necessary to generate a commitment, not only with the seller/owner and/or the financial institution but also with your pocket.

Salary is the first thing you should pay attention to because it depends on whether you can acquire the property. Of the total of your net monthly income (already after the corresponding deductions), it is desirable to program that 30% of it is destined for the payment of the mortgage. We suggest you not exceed this percentage to avoid bleeding your finances and, in addition, to divide the money; In this way, it will allow you to be flexible with the additional expenses that arise along the way. To give an example: If you earn 20 thousand pesos, set aside six thousand pesos for the mortgage loan payment and make sure you have significant savings for the down payment.

Salary considerations

The down payment is the amount that you will have to pay in advance; Usually, in Mexico, a base of 30% of the total value of the property is established, but it varies depending on the type of mortgage you get or if the property is going to be settled in cash. In any case, it is not bad that you start thinking about this percentage. 

The down payment also means the first step of the whole process and is also seen, in most cases, as the guarantee to be able to inhabit the property.

b. Credit history

To get credit, it is wise to have a clean credit history and no debts. This will set the standard to define the percentage of credit that the financial institution will grant. For this reason, we recommend that you consult the credit bureau (free service), which gives visibility to the status of your history in this matter, to find out if it is appropriate to settle the delinquent balances, as well as improve your record.

c. Extra payments to consider

There are some payments to keep in mind before taking the big step. For this reason, we suggest that from the 70% that you have leftover from your salary, apart from 10 to 20 percent for additional ones such as the property, the notarial procedures, and any structural or superficial improvement that you wish to make in the selected space.

The property tax is a tariff that is applied on any property or real estate possession, that is to say, to houses, apartments, offices, etc. It must be paid by all taxpayers who own one or more of these assets.

It must be paid annually; generally at the beginning of the year.

The Real Estate Acquisition Tax (ISAI) changes its name depending on the state, so the rate that the taxpayer has to pay depends on the place and the value of the property; It is paid at the time of the deed and the person in charge is the one who acquires the property.

In summary, we can say that the notarial procedures include the deed (among which are the taxes on the sale of the property), the rights derived from the operation carried out, and the notarial fees, these are paid 100% by whoever buys.

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