Learn how to evaluate the costs involved in buying your own home

The escalation of the Selic and inflation increase the need for financial planning for those who are preparing to buy their own home.

Data from the CNC (National Confederation of Commerce) show that, in April, Brazil reached the highest percentage of indebted families since January 2010: 77.7%. And the main debt of 8.3% of them is real estate financing using the FGTS (guarantee fund). For the majority of the Brazilian population, the only resource for the dream of having a property.

In the first four months of 2022 alone, 45,300 properties were financed, totaling R$52.62 billion, according to Abecip (an association of institutions that offer this type of credit). In the 12 months ended in April, the sum reached R$ 198.12 billion.

Through the SFH (Finance Housing System), the buyer gets credit of up to 80% of the total value of the property to pay in up to 35 years in installments that cannot exceed 30% of his income.

Although mortgage interest rates do not vary in the same proportion as the Selic rate, they should rise in the next semester, driving thousands away from home ownership. According to Abrainc (Brazilian Association of Real Estate Developers), an extra percentage point in mortgage interest leaves around 1 million families without access to credit.

The Selic also interferes in the average income to obtain financing. If the basic interest rate rises, financing becomes more expensive, increasing the chances that the consumer will not be able to pay the installments. To avoid the risk of default, banks increase the income required to contract the financing.

Despite the increase in cost, Roberto Nascimento, CEO of Kzas Krédito, says that, if income is not a problem, it may be worth getting into a loan this semester. Mainly, if the consumer can give more than 20% of the value of the property as a down payment.

“If you find a good deal, it’s worth taking advantage of it. Tomorrow the rate will fall again, and the buyer can make portability or negotiate the remaining balance”, says the businessman.

“People tend to think that buying a property in cash is the best of all worlds, but, in fact, the interest on the financing remains low, even with the rises in the Selic. It makes more sense to invest in investment bonds and pay the financing with income, than paying for a property in cash”, says Nascimento.

Another precaution to avoid default is in choosing the type of financing amortization. According to the Price table, the installments will always be the same, but they will be composed of more interest.

Under the SAC (Constant Amortization System) the installments are more expensive at the beginning and cheaper at the end, because of the progressive decrease in interest.

According to experts, for those who cannot afford higher monthly amounts at the beginning, Price is more suitable, but you have to be careful not to use the entire budget limit.

For those who want to pay less interest and can afford a higher installment amount at the beginning of the financing, it would be better to finance through the SAC.

Expenses with home ownership go beyond financing and need to be included in planning. In addition to fixed monthly expenses with water, electricity, gas and internet, the first years of adapting to the new home burden the budget with property taxes, property transfer fees and possible renovations.

“Right away, he needs to save 20% of the value of the property he intends to buy. When he is effectively moving, he will have expenses that should reach another 10% of the property”, says Eliane Habib, from Planor.

The financial educator always recommends keeping a reserve fund to cover at least six months of household expenses. “It is necessary to have a medium and long term planning for this property. When the property is ready, the condominium is already constituted. In the new ones, this expense will increase month by month until everything is ready”, says Habib.

If you buy a property in the plant, for example, until you receive the keys, the consumer will pay up to 35% of the value of the property. The rest will be paid over the years, along with the costs of installing floors, furnishing and running the house.

“The property’s trap is to fall in love with it, because then the buyer doesn’t see anything else. That’s why planning, simulating expenses, analyzing the ideal profile of the property – whether used or new – fits comfortably in the budget should be the beginning of a whole financial plan for the family”, says the educator.

Own house costs

Until the keys are handed over

• Between 30% and 35% of the value of the property, in installments paid to the developer

After handing over the keys

• bank financing
• inspection fee
• Negative certificates – can reach R$ 200
• Deed – varies according to the state – for a property worth R$ 500 thousand in the capital, for example, the price charged by the notary is R$ 3,630
• Property registration – approximately 1% of the market value of the property
• ITBI (Tax on Transfer of Goods) – varies between 2% and 4% of the market value of the property
• home insurance
• Condominium – monthly readjusted
• property tax
• Furniture and decoration of the property
• Consumption of water, electricity, gas and supermarket
• Internet service monthly fee
• Public transport or fuel

Not to get into debt

• Consider that you will pay installments 1/3 larger than the amount informed in the credit analysis
• Don’t buy within your budget
• Always set aside for emergencies the amount corresponding to six months of monthly household expenses
• Use the FGTS to finance the property
• Analyze investments that can redeem the income to pay off installments of the property financing
• For renovations, even small ones, make more than one budget

Save for your own home

• Reduce spending on credit cards and prioritize those that do not have an annual fee
• Opt for simpler cable TV packages and review internet and cellular plans
• Eat at home and avoid delivery
• Go to the supermarket with a shopping list and don’t run from it
• Use a financial manager on your cell phone to control spending