One of the first questions you will be asked in a sales office is: what is your budget ? But, exactly, how do you calculate your budget?
In the sales office, a quick and easy tool is used to find out if a person is fundable or not:
Debt capacity
This is the amount of your maximum monthly payment. All banks apply different basic rules when it comes to calculating debt, which is why our calculation remains general. On the one hand, income:
- Salaries and wages (do not count packed lunches and travel allowances)
- Land income
- Disability pension
- Any other income stable over time
And the charges to be deducted from your income:
- Monthly repayments of current loans
- Alimony
We therefore obtain a net income to which we will apply the famous 33% rule. What I get is my monthly debt capacity (the maximum monthly payment I can pay), I keep that number in a corner to come back to.
Borrowing capacity
This is the total amount that I will be able to borrow, based on my debt capacity. By paying X € every month for 20 years, for example, I could get a sum of XXX XXX € from the bank. It is this sum that we are going to determine, approximately, because the calculation is a little difficult.
| Duration | Rate | Monthly payment for€ 10 |
| 10 years | 3,40% | -98,418 |
| 3,50% | -98,886 | |
| 3,60% | -99,355 | |
| 3,70% | -99,825 | |
| 15 years | 3,50% | -71,488 |
| 3,60% | -71,980 | |
| 3,70% | -72,474 | |
| 3,80% | -72,971 | |
| 20 years | 3,90% | -60,072 |
| 4,00% | -60,598 | |
| 4,10% | -61,126 | |
| 4,20% | -61,657 | |
| 25 years | 4,00% | -52,784 |
| 4,10% | -53,337 | |
| 4,20% | -53,894 | |
| 4,30% | -54,454 | |
| 30 years | 4,40% | -50,076 |
| 4,50% | -50,669 | |
| 4,60% | -51,264 | |
| 4,70% | -51,864 |
I want to know what will be the monthly payment of a loan of 280 € over 000 years at the rate of 30%:
- Divide 280 by 000 which gives 10
- I take the corresponding monthly payment (line 18 from the top) and I multiply it by 28. If this monthly payment is lower than your debt capacity then it will pass otherwise you have to decrease
Another technique, a little more complicated, consists of doing the same thing in reverse: I want to know what will be the amount borrowed for a monthly payment of 900 € (my debt capacity) over 30 years at the rate of 4.50%:
- Divide 900 by 50.669 which gives 17.75
- I multiply 17.75 by 10. Which gives me 000 or my borrowing capacity.
Finally, you will have to add your personal contribution and you will thus have your budget for your future purchase.
Control the real estate market to avoid dangers
Many questions arise when buying real estate. Indeed, there are certain risks to be aware of before embarking on a real estate purchase. Fortunately, online platforms offer you all the answers to your questions to facilitate this purchase, in particular the Immobilier Danger website.
Discover Real Estate Danger
Immobilier Danger is nothing more than a platform created to guide and support you when buying real estate. In effect, the website offers many tips to simplify this purchase and limit the risks. In addition, the online site offers you various information on the purchase, the rental of real estate, but also the real estate market in France for example.
Finally, Immobilier Danger allows different simulations, both for your mortgage and your notary fees, or to calculate your borrowing capacity or obtain a real estate diagnostic estimate. In short, you will benefit from all the necessary information to make your real estate purchase a real breeze.
Everything you need to know for a real estate purchase
As mentioned above, there are many questions when it comes to buying real estate. Indeed, it is essential to know the risks, but also the real estate market and other significant information. You will need, for example, controlling purchasing costs, and more particularly ancillary costs which you should expect. Immobilier Danger thus offers a loan simulation in order to anticipate the total cost of your property purchase.
You will also be able to know and benefit from a simulation of notary fees or borrowing capacity. Finally, Immobilier Danger informs you about the negotiation of real estate. Trading opportunities differ according to each real estate sale and the platform guides you according to your real estate purchase, but also according to the local market and the game of supply and demand.
