How do I secure myself against economic bubbles?
Jovica: There are many international, national, and local economic bubbles. Therefore, you need some knowledge about macroeconomics and the local real estate market to understand the market. Statistics on prices only give you knowledge about how the market has developed, but this has to be viewed in relation to unemployment, inflation, consumer confidence and other significant factors regarding the economy of the country – which is closely related to the real estate market.
What time of year is the best time to buy a new home?
Christopher: There is a tendency that the house prices are higher during the summer half-year, but actually the biggest difference is that the number of homes on the market is higher during the warm months where many sellers expect their home to look better due to the good weather and green garden. But it all depends on the home that you as a buyer has an eye for. If you do not consult a buyer’s agent to make sure that you and not another potential buyer gets the home and for the right price, I recommend you to start your house-hunting out of season where there a fewer buyers. But if you have an advisor on your side, the season is not something you need to consider.
What if there is uncertainty in the real estate market?
Christopher: Due to Covid, there is significant uncertainty on the real estate market right now. The supply of homes is historically low – up to 50% fewer homes in the Capital Region – and this has increased prices. None of the experts had seen this coming. Therefore, our approach is that each home must be viewed from a specific point of view. It is still possible to make good deals, but it requires a good strategy – both when it comes to securing the home now that there are so many potential buyers, but also when is comes to getting a good price. That is why we believe that home buyers should not stand alone, when the sellers have the real estate agent on their side.
What are the steps to purchasing a home?
When you want to purchase a new home, the first step is the financing. Here, you need to contact your bank and find out how much money you can borrow. If you consult a buyer’s agent like Bomae, we help you collect offers from different banks to find the best possible solution for you.
When you have the financing in place, you can start looking for your new dream home. Once you have found it, you have to make an offer and finish the sales contract. If you consult an advisor like Bomae, we help you through the whole process – also the legal documents.
How much money do you actually need to buy a house?
The house prices in Denmark differ a lot from house to house. It depends on both the location and the state of the house. If the house is located in one of the big cities like Copenhagen, it will be pricier than in the smaller towns.
However, you must pay a 5% deposit in cash plus the financing costs.