Are you looking for an older apartment to buy? You better be careful

Liv Butler
Authored by Liv Butler
Posted: Friday, May 27, 2022 - 16:10

Do you want to buy your own home and do you expect an older apartment to be a suitable solution, whereby you'll save even more? You could be right of course. But also be prepared for numerous risks and negatives.

You'll be searching for an apartment for a long time

Although the peak of the real estate fever in the Czech Republic is likely over, housing demands still outweigh the supply. For this reason, you have to prepare for the dozens of other applicants to apply for the apartment that you're looking at.

Additionally, if you set strict criteria (exact location, building type, presence of lift, cellar and balcony, excellent condition), your choice will reduce greatly. Therefore, you'll only need to call after the real estate agent has added an internet advertisement for sale. Arrange a tour quickly and have financing ready.

Mortgage loans are becoming more expensive, don't leave the agreement to the last minute

Mortgage interest rates are no longer at an all-time low. Therefore, loans are becoming more expensive and you have to consider the fact that getting a mortgage is getting increasingly difficult. The bank assesses your ability to repay the loan. And because real estate prices are at record highs and rates are rising, instalments will also be at a record high. At the same time, over the last year household incomes haven't been rising as fast as real estate prices, making housing less affordable.

For this reason, it's a good idea to start negotiating a loan when you're looking for real estate. You will know the approximate loan you can get, and the money becomes available to you faster as soon as you find an apartment.

You should start buying furniture in advance. Nowadays, waiting times can be several weeks. If you wait, you may have to improvise in your new apartment for a while. Take a look at and order your first pieces today.

Pay attention to all contracts and agreements

Whether it is a reservation or a purchase agreement, never sign it without carefully first, ideally, consult your lawyer. They can find minor and fundamental errors in the agreement that need to be corrected before signing.

Therefore, send the draft amendment to the contract to the counterparty and you will wait for its comment. Only once you have agreed on a wording that suits both parties can you proceed to sign.

Simultaneously, never commit to paying a reservation deposit before you have a mortgage. Then never send money directly to the other party or real estate agency. The money should go to the other party through the so-called attorney custody.

You'll encounter unexpected problems in the apartment

Even with a thorough inspection, the difference is that you examine the property for an hour and you don't actually live in it. Soon after you move in, you'll start to notice various problems and imperfections that you'll need to correct. Depending on whether or not the problems were already apparent during the inspection, then it is possible you may or may not be entitled to have the problems compensated by the seller.

In any case, it pays to be as consistent as possible during inspections and specify the property's technical condition in the purchase agreement or handover protocol. You'll avoid so many problems. In the event of a dispute, you'll have important evidence at your disposal.


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