Succeed in your first real estate purchase

Step 1: Define your needs and budget

Anticipate your project: to do this, we invite you to (re) read our advice for Preparing your first real estate purchase

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Step 2: Find the right property 

Location: choice criterion number one

The golden rule is location. If there is only one, it is this one. It's important to understand that this is happening one block away in big cities.

Criteria not to be overlooked

Whether you want to invest in a property to be redone or already redone, there are essential criteria to take into account during your visits. The advice is summed up as follows: pay attention to anything you can't change. We explain ourselves:

• The calm. It is sometimes possible to cheat by insulating, partitioning or installing double glazing, but it is important to be able to open the windows without making it unbearable. Choose a quiet atmosphere at least for the rooms.

• The building, the condominium. A beautiful Haussmannian, a renovated building, a welcoming stairwell and in good condition. These are things that are beyond your control but that give a real plus to your project. Do not hesitate to inquire about what is being presented at the future General Assembly!

• The light. This goes without saying but on a daily basis it is very important to choose a well-oriented apartment, either on a high floor with natural and direct light (the best), or indirect by choosing buildings with clear and bright facades opposite. To promote light, choose large windows... And for renovation, choose frames with thinner window edges.

• The volumes. Did you know that a 25m² with a high ceiling will seem bigger than a 30m²? You have to be able to imagine the flat surface, in order to let the volumes stand out. Open the kitchen to the living room, set up an alcove as a bedroom. Even in small spaces it is possible to play with volumes. Then, the decoration (colors on the walls, wallpapers) can help to play with perspectives, highlight elements. You are lucky, with Kyka we are experts on the subject.

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It is always possible to ignore one of the criteria if the rest is really above average. Our expertise lies in knowing how to compensate and finding the best compromise to maximize the added value of your real estate purchase.

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Step 3: Finance your real estate purchase

The origin of the funds

Your financing generally consists of two components: a mortgage and your personal contribution.

• The mortgage: tedious and sometimes complicated to obtain, it is however important to use the leverage effect of the mortgage to make a real estate purchase. Indeed, by borrowing you do not need to finance your acquisition with your own funds. In fact, real estate is the only financial product that can be obtained on credit. And yes, you will never be loaned to buy shares on the stock market or invest in cryptocurrencies.

• Your final budget also includes your personal contribution. Few banks finance your entire project. Even if they do, they will ask you to bring the necessary amount to cover the costs (notary fees, file fees, security fees, etc.).

One more tip: don't invest all your money in the deposit. Keeping residual savings allows you to keep some money aside to deal with hazards and also reassures banks. Our recommendation: keep the sum corresponding to 6 months of your current expenses.

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Obtaining your loan

Once you have signed an offer to purchase and the sales agreement, you will be able to definitively realize your project by obtaining your real estate loan.

When you assessed your borrowing capacity, you go to see your bank, the competition or chose a broker to guarantee you the best possible options. Remember that it is essential to compare and negotiate: interest rates, bank fees, loan terms, prepayment terms... All these financial elements can vary from one financial partner to another.

It is now time to confirm the choice of the financial partner who will assist you in your real estate purchase. Once done, you can apply for a loan at the selected bank or financial organization. You will need to provide the required documentation and complete the required forms.

Then, the bank or financial organization will study your request and assess your ability to repay the loan. They will check your credit history, your income, your expenses, etc. They will in particular ensure that you respect certain ratios such as the debt ratio, which should generally remain below 1/3 (this point is under review by the government but it is there to avoid over-indebtedness).

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If your request is accepted, you will receive a loan offer. Take the time to read the terms and conditions carefully (and yes, all the short lines!) , interest rates, loan term, repayment terms, etc.

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If you are happy with the offer, you can sign the mortgage agreement. Make sure you understand all the clauses and don't be afraid to ask questions if anything is unclear. In any case, you always have a 10-day cooling-off period allowing you to withdraw if necessary.

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Once the contract is signed, the funds will be released. Attention, some banks must be relaunched regularly so that they have in mind the dates for signing the bill of sale. Without the funds in the notary's account in the hour preceding the signing of the authentic act, the sale will not be able to take place.

Know that Kyka helps you gather and send all the documents concerning the apartment. We then help you advance the file with your bank. We also help you to decipher the short lines and other asterisks. So don't panic, we are by your side.

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Step 4: Signing the authentic act of sale

All the parties are ready, go back to the notary for the signing of the authentic act of sale. This document contains the elements stipulated in the sales agreement (or promise).

During this appointment, you will be asked to pay:

• The remainder of the price of the property (the total sum minus the value sequestered during the compromise (or promise) of sale).
• Notary fees (around 7% of the price of the property).
• The financial proportion linked to the property. This corresponds to the proportion of the financial expenses related to the property that the seller has already incurred over the current year (property taxes, condominium taxes, etc.).

On the one hand, the bank pays the loan granted and you pay the rest with your personal contribution.

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Last piece of advice for a successful first real estate purchase

Surround yourself with professionals: broker, notary, architects, artisans... You see behind all these jobs additional money to pay but you can trust us, they will quickly compensate for the costs incurred with their expert advice. The advantage with Kyka is that we offer you comprehensive support to manage your project.

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To summarize

To successfully complete your first real estate project:

• Anticipate and prepare your project by asking yourself the right questions and assessing your borrowing capacity
• Research your nugget while keeping in mind criteria that you won't be able to change.
• Get your financing by comparing several offers and choosing the most suitable one for your situation.
• Sign the authentic act.

The must? We surround ourselves with professionals who, thanks to their expertise, support you in this incredible project.

Do you want to discuss your project with our advisors? Make an appointment with them here!