Are you planning to take a mortgage? What should you keep in mind?

Many of you would like to live in your own place. On the other hand a few people can afford several hundreds of thousands or millions and buy real property. People with common salary often solve this situation by mortgage. But will you manage to pay it off?

 

 

Are you looking at advertisements for houses for sale and you hope you will live in one of them? 

 

First it is necessary to know how much money are you able to pay from your own. And then calculate how much you will need from the bank. 

 

When you know how much money is missing with help of loan calculator you can calculate what would be your monthly instalment. Can you afford to pay this sum every month?

 

Of course you have to keep your life standard. You should even try to send the given amount of money to another bank account to see how you can manage without this money. 

 

 

It is also important to decide whether you will owe on your own or not. You can take loan together with parents, wife, husband or partner. If you don’t want to marry just due to a mortgage it is an advantage.

 

On the other hand you can have an argument or split up. Therefore if you want to take mortgage together with your partner you should first agree (ideally contractually) how you would put up with that. It might happen that your dream apartment will end up on the internet in the rubric apartments for sale in Prague. 

 

 

Even though you might manage to pay off mortgage without larger problems you should make reserves. You never know when some large unplanned cost might occur. 

 

Apartments for sale are attractive also for young. Imagine you take a mortgage in age of 25 for 30 years. You will pay it off before retirement. 

 

During these several years you should at least save some reserve for retirement. If you don’t invest any money in your life and just spend everything you can’t expect calm retirement without any financial problems.