Finances
How does it work?
Investing in real estate requires financial planning. The goal is to determine which solutions can help you finance your investment. Yafo Invest is here to guide you in this process and help you find the best way to invest in your future project.
Our advisors will help you make the best choices, from preparing your financial plan up until its execution.
What is the best way of doing
financial planning?
What is your financial situation?
The first step to good planning is reviewing your situation. Income, savings, debts, and professional stability, are all essential factors in identifying your investor profile. Accordingly, you can determine how much you should invest in your project.
This investment comes primarily from the savings you will be willing to put toward your future property purchase. They can be divided among various banking supports: PEL, saving accounts... But it can also come from selling another property. Therefore, you can think about selling your current housing to partially, or even integrally, finance your future one.
Estimate your borrowing capacity
Most people use a mortgage to finance real estate investments. Your mortgage will significantly impact the amount you will be able to invest. In this effect, it is worth studying closely offers from different banks.
Your borrowing capacity depends mainly on your financial and professional situation, income, and debts. For banks, the level of risk from the borrower will determine his borrowing capacity. They will favor profiles with less risks, or in other words, those who are more likely to reimburse the integrality of their mortgage.
Therefore, having a steady job and a regular income will help optimize your borrowing capacity. Another important step is reimbursing loans and reducing your debt ratio. In some countries, banks limit your debt ratio to a certain percentage. In other words, you won’t be able to get a loan if your current debts represent more than a certain percentage of your income. Our advisor will help you optimize your borrower profile, and therefore your borrowing capacity.
Finding the best mortgage
We will help you find the most adapted mortgage for your project with the help of a realtor. He will be comparing all of the market’s offers and focus on the ones that fill your expectations best.
You will be gaining a considerable amount of time, and our expert will immediately know how to differentiate between good and bad offers. Often, a loan might seem attractive on paper, but by looking closely at their conditions, a few disadvantages might occur.
Among the things we will be checking are credit charges, monthly payments, and repayment period. A mortgage generally has to be reimbursed in a 10 to 25 years period. In other words, you should be able to afford these monthly payments during this period, except in the event of a sale.
Financial aid
Your financial planning should also consider the financial assistance you might receive. Naturally, those aids will depend on your rights and the country you live in. Tax exemption systems are also available, especially for investment in rental property.
Our specialists will help you take advantage of all of your rights.
Assessing your investment
Naturally, the buying price of your property will take up most of your financial plan. Assessing your investment is an important step that might avoid future setbacks. Are there any renovations waiting to be done? If so, at what cost are they estimated? Which charges are to be excpected, notary fees, credit insurance, diverse fees? All of those elements have to be pinned down before the sale. Indeed, you will have to include them in the financing of your project.
