How to plan a budget for buying an apartment?

The dream of owning a home can become a reality if the budget is planned correctly.
Buying an apartment is not just about making a down payment—it also involves a range of additional expenses that should be considered in advance. To avoid financial surprises, let's look at the key aspects of budgeting.

First Steps in Planning

Before you start saving for your own home, it's important to determine a few key factors:

• What type of apartment do you plan to buy: new or resale?
• What is the average cost of housing in your chosen location?
• Is it possible to get a mortgage or installment plan?
• What additional expenses need to be considered?

Market analysis can help assess price trends and determine the best time to buy.

Main Expenses When Buying an Apartment

When budgeting for a home purchase, pay attention to the following key points:

• Down payment. If the apartment is purchased with a loan, you usually need to have 20–30% of its value.
• Monthly payments. If taking out a mortgage, it's important to ensure that loan repayments do not exceed 30% of your monthly income.
• Additional fees. Banks may charge fees for loan processing.

Additional Expenses

Buying an apartment comes with several associated costs that should be included in the budget:

• Taxes and fees:
  • Pension fund fee—1% of the apartment’s price.
  • Notary services and property registration.
• Renovation and furnishing. Some allocate 30% of the property value for this, while others may spend up to 50%, depending on the apartment’s condition.
• Utility and maintenance costs. If purchasing a newly built apartment, additional expenses may be required for connecting utilities in the first few months.

Emergency Fund

Financial experts recommend having an additional reserve of 10–15% of the property’s value. This helps avoid stress in case of unforeseen expenses.

Conclusion

Careful budget planning makes the process of buying an apartment more transparent and predictable. A well-prepared financial plan ensures peace of mind and confidence that your dream home will become a reality without unnecessary difficulties.

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