When you are going to buy a flat, it is important to be prepared and get the right advice. Flats can move incredibly quickly, from when the first ones are listed for sale until they are sold again. That is why you can secure your purchase by staying ahead and being well prepared.
5 quick buyer tips Set a budget – calculate what you can afford and get a loan certificate so you know what you can buy for — we obtain offers from several banks and compare them for you. Make a list of requirements and wishes for your future flat, and remember to future-proof yourself. Can you, for example, grow into the flat, or will you have to sell if the family grows? Get in touch with a buyer's agent who can help you throughout the entire home purchase. The Danish Consumer Council (Forbrugerrådet Tænk) recommends that you use a buyer's agent when buying a flat or house. A buyer's agent can pay for themselves many times over. Book a viewing before an open house so you get ahead of others and increase your chances of being first in line. Once you have found the right flat, contact your buyer's agent immediately and let them handle the negotiations and dialogue in the decisive phase. They can save you a lot of money and frustration.
Why use a buyer's agent when buying a flat? In a property sale, the seller has typically used a professional representative to handle the sale. In other words, you will be facing a professional estate agent who is used to selling and negotiating properties every day.
When you use a professional representative to handle the purchase, you ensure that you too are represented by a strong buyer's agent who removes the emotions from the purchase and works to secure the best terms for you.
Read more about how a buyer's agent at Bomae can guide you through the entire buying process.
Dream flat for 4,000,000 kr. – what does it cost?
If, for example, you are going to buy a flat for 4 million kr., as a starting point you should have savings of 200,000 kr. for the mandatory 5% down payment.
After that, your gældsfaktor (debt-to-income factor) is examined — that is, your debt relative to your household income. The rule of thumb dictates that you may have a debt-to-income factor of 3 to 3.5 times your gross income, if you have no assets other than the down payment.
In that case, your financing could look like this:
- Price of dream home: 4,000,000 kr.
- 5% down payment: 200,000 kr.
- 15% bank loan: 600,000 kr.
- 80% mortgage loan: 3,200,000 kr.
- Interest and costs: 2,700,000 kr.
Note that interest and costs can cost you up to 2,700,000 kr. over the term of the loan. It is therefore important to optimise and adjust your loan, as even small improvements can lead to significant savings.
This is of course also something we, as a financial advisor, help you with.
Considering a parental purchase?
If you are considering buying a flat for your child, as a parental purchase (forældrekøb), we have written a long article on the topic.
There are many considerations to make before embarking on a parental purchase. However, you should not be discouraged, as it can be a really good solution. If you are weighing it up, you can always call and ask about your options and how we can help.
Everything gathered in one place
At Bomae, we have gathered the entire home-buying process in one place. This means we guide you safely through the entire purchase of your future home, as part of our buyer's agent service. You therefore have just one point of contact who takes care of negotiating with both the estate agent and the bank advisor to achieve the best terms for you.
Fill in the contact form so we can have a chat about how we can help you with the purchase and financing of your home.
