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10 Mistakes to Avoid Before Buying a Home

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10 Mistakes to Avoid Before Buying a Home

Often overlooked are the details that are critical to getting a good deal. CNN Portugal listened to a real estate specialist, a lawyer from the DECO financial office and a person in charge of home loans, and explained what you can not do when you want to buy a property

Despite the war, the increase in interest rates and the forecasts of the Bank of Portugal, the real estate market continues to grow. Only in the first three months of the year housing prices in the country grew by 12.9%. Including investments, who wants to buy a houseexperts warn, it is necessary to pay attention to the details that can be decisive for closing a profitable deal.

CNN Portugal spoke with Massimo Forte, Real Estate Specialist, Elisabeth Policarpo, Lawyer at Deco Financial Protection Authority, and João Melo, Head of Home Lending at ComparaJá, who explain mistakes to avoid and details to be aware of. , and steps you can’t ignore.

Give an unrealistic estimate

When buying a home, there’s a first step that needs to be taken safely, warns Deco lawyer Elisabeth Policarpo: determining the weight the purchase will carry on the family budget. First of all, he says, anyone who wants to buy a property cannot “forget that a home loan is a long-term one and will accompany you through the different stages of life.”

Therefore, one of the mistakes is not to give a realistic assessment from the very beginning. To do this, it is necessary to analyze several factors, the specialist points out. “The type of income that exists, whether fixed or variable, the commitments already made, the estimate of the level of effort, the need for liquidity to match the original value, the signal (which must be taken by the consumer in order to formalize the bill of sale) is not always properly taken into account by the buyer” he warns.

On the other hand, it is important to understand the interest rates of the banks and determine the benchmark of the cost you can pay to find a home. However, Deco’s lawyer emphasizes, “it is important to bear in mind that the cost of financing will depend on the value of the property valuation carried out by the banking institution.”

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Ignore some costs

The truth is that in addition to the monthly mortgage payment (including the cost of life insurance and multi-risk insurance), there are many other significant costs associated with buying a property. Real Estate Market Specialist Massimo Forte reminds you to take into account the costs of registration, documents, banking and process valuation, as well as the municipal burdensome transfer tax (IMT), a mandatory expense when buying a house.

No money to enter

“Since 2018, no banking institution has been able to finance more than 90% of the cost of a property acquisition or appraisal transaction,” notes Deco lawyer Elizabeth Policarpo, explaining that this means anyone who wants to buy a home to make sure they own them, for example, sufficient amounts for the so-called “advance payment”.

In addition, he states that by not financing 100% of the property’s appraised value, the consumer will receive no more than 90% of the value of the act of purchase (or the property’s appraisal), meaning that buyers must keep the difference.

Forget about the rate of effort

Any purchase involves an analysis of the family budget, but in the case of real estate, it is important to always take into account the so-called Effort Rate. That is, the ratio between a household’s net monthly income and its expenses.

In the case of a bank loan, this rate must be calculated based on the household income and the contributions to be paid to the bank. Lawyer Decaux points out the simple calculations that need to be done to determine this value: effort rate = [total de prestações / rendimento do agregado familiar] x 100). “The effort factor should be less than 35%,” warns Elisabeth Policarpo.

Value the spread more than the APR

The ability to analyze various indicators can be crucial in determining the payment amount when applying for a bank loan. According to Joao Melo, responsible for home loans in CompareJa, a company that imitates a bank loan, it is important to pay attention not only to the spread – the rate that the bank charges the client to cover the expenses that he had and make a profit with the loan – but also to the annual interest rate. “This is an important percentage in loan offers,” he says.

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Explaining that the annual interest rate “includes not only the cost of the spread, but also all costs inherent in the loan, such as life insurance and multi-risk insurance”, João Melo ensures that it is the value of the annual interest rate that “translates whether we face we are with a good or bad suggestion”. Therefore, it is good to have no doubt that “one of the most common mistakes is to ignore the annual interest rate in favor of the spread, since it is a more well-known term and with more disclosure by banks.”

Without assessing in detail the condition of the house

Another of the most common mistakes to avoid is not visiting a property to see what condition the property is in. Massimo Forte, a specialist in the real estate market, ensures that it is necessary to “visit the property in person” to avoid surprises. And even leaves a proposal: on one of the visits, accompany a professional builder, engineer or architect to sort out the details that elude most people.

On the other hand, this appraisal can help you get a real assessment of the condition of the property and understand the possible costs. At the same time, some elements arising from the condition of the property can be used to make negotiations more profitable.

Depreciate real estate area

When you’re looking to buy a home, it’s important to know the area you’re in. Therefore, Massimo Forte advises, in addition to exploring the interior of the object, to walk along the streets of the area in which it is located. “You always need to walk around the territory, talk with neighbors,” he suggests.

Another tip: visit the area and the property at different times, because there are details that are only revealed during the day, such as the need for renovation, and others that are more noticeable at night, such as noise.

there are missing documents

If you are sure that you have found a “home”, you must urgently request all documents for the property. According to experts, there are documents that people sometimes forget to ask for, but they are necessary for business: a cadastral book, a certificate from the registry office and a license to use. After that, it is also advisable to check that everything is within legal limits with a professional.

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One of the most important documents, notes Massimo Forte, is the Promise of Purchase and Sale (CPCV). This document is mandatory and serves as a guarantee of your position and the position of the owner regarding the cost, timing and other conditions associated with the purchase of real estate.

Do little research and have little information

“The big mistake is the lack of market research on the conditions applied by various institutions in the field of home loans,” defends Deco specialist Elisabeth Policarpo. This move could completely change the terms that will be included in the contract, such as the cost of a monthly payment.

The expert adds that the consumer, as a rule, takes out a mortgage in an institution where he already has a business relationship, which is wrong. “Your bank will not always be the institution that offers the most attractive terms, sometimes it will even be the one that presents the worst terms,” he warns, explaining the importance of running several simulations in different institutions and carefully analyzing the terms offered.

Compare offers with friends’ offers

Each case is individual. This is a premise that João Melo says that many people forget when buying a house. “The bank’s offers are individual for each client. A very common mistake is to compare the offers received with those of friends who have recently taken out a loan.”

According to ComparaJá, responsible for housing loans, apart from the profile, there are other factors that influence the amount a bank is willing to lend. “In addition to customer characteristics (age, salary, expenses, fees, and household), there are other factors such as the type of employment contract, the presence or absence of a second holder or guarantors, and what are the characteristics of the property being purchased.”

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Economy

Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners

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Everything has been delivered.  10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

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The first Dacia hybrid. “The cheapest hybrid family on the market”

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The first Dacia hybrid.  "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

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Economy

See how Tesla tests its electric Semi truck in the worst-case scenarios

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Tesla Semi camião elétrico testes

Tesla has finally been able to bring its long-awaited Semi to market. This electric truck promises to revolutionize transportation and bring all the unique characteristics of this type of electric vehicle to this class of vehicles.

Now that the first units have been delivered, there is hope that they will finally be mass-produced and reach more transport companies. With so many promises to be kept, a new video is now emerging showing Tesla testing its Semi truck under worst-case scenarios.


Tesla Semi is already on the market

Like all Tesla electric vehicles, Semi follows the same line of creating a unique design associated with a platform with the most modern technology available. The proof is in what was presented to the public and surprised most people.

To prove the quality of this new proposal, Tesla published in your LinkedIn account new video. In it, he reveals some of the testing he's done to determine the strength and quality of the Semi's design and its (potential) durability.

Tests to prove its durability

It has been revealed that the Tesla electric truck is subjected to numerous tests and its application in the worst scenarios that drivers may face. It doesn't stop at the ruggedness of the Semi's designs, but goes further and focuses on the motors and batteries themselves.

This is the proof that many have been waiting for to ensure that this new proposal is not limited to a lot of autonomy. Its resistance is great and will provide greater durability, further enhancing the Semi's value and performance.

high quality electric truck

Tesla has already showcased the Semi's quality with a video showing its truck driving roughly 500 miles on just one charge. The big news here is that he managed to make this long journey with a maximum load of about 37 tons.

Now Tesla remains to widely place the Semi on the market. At the moment, only a few companies have access to this new product, with a very long list of pending deliveries, who want to start mass-using this electric truck offering.

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