Are you looking to buy and want to know how to prepare for your real estate project? If you already know something about where you want to liveand that you are aware of the trends in the Luxembourg real estate marketYou need to know what type of property you are looking for.

Before you start, it is important to have a quick idea of your budget. On the one hand calculate the input that you are able to allocate to your project. On the other hand, add up your monthly household income. Take 30% to 40% of this annual income and multiply by the desired loan term. With this first calculation, you can will get the coarse envelope that you can use for your property project.

Your path to the real estate quest can begin.

1. Flat or house? It depends on the composition of the household

The choice of the ideal property will depend mainly on number of people in your household.

• If you are a single person or a couple: you can turn to a 1 to 2 bedroom flat. The surface area of these flats generally ranges from 40 to 90 square metres and there is something for every budget! You can enjoy your small, well-connected city centre flat with a balcony, or your suburban penthouse with a large terrace: it all depends on your desires and your budget!
  
• If you have a child : you can opt for a 2-bedroom flat of 70 to 100 square metres, which are common in Luxembourg. This will give you 2 bathrooms (e.g. 1 parental and 1 for your child), a large living room, and all the necessary space. However, if you are planning a new birth in the near future, you may want to consider a 3 bedroom or larger. Again, it all depends on your budget and your desire to travel.
• If you have several children : in this case, look for properties with 3 or more bedrooms. You can easily find 3 bedroom flats in Luxembourg (even if they are much rarer than the 2 bedrooms). With these characteristics, it will probably be easier to find them in the cities adjacent to the capital. However, if you are looking for 4-bedroom properties, then you will have to look for houses (mostly semi-detached). Look in the suburbs or further afield (on the border with France, or in the north of the country). You will have a better chance of finding one that you are happy with, within a reasonable price range.
• If you are a divorced parent with alternating custody : all depends on your budget. If you want to live in the city, are on a tight budget and have occasional (weekend) childcare, you can opt for a flat that has a bedroom for you, and arrange the living room at weekends to accommodate your child. If you have frequent childcare, you may prefer a large flat, even if it means moving further away from the city centre.

You now have a clearer idea of the type of property you are looking for. The last step before launching your search is to choose between these two main types of property: new or old?

2. New or old? It all depends on what you want... and your budget

Some people like the charm of the old, others prefer the smell of the new: as always, tastes and colours are not up for discussion! Nevertheless, there are objective criteria that can tip the balance in favour of old or new in the context of your property purchase.

• The former is the obvious choice: it accounts for almost 9 out of 10 listings on atHome, and you can move in straight away. Depending on the residence, however, the old one can have its share of costs: major structural or energy renovations may be required. This is something to bear in mind when visiting the property.. Fortunately, most renovation and thermal improvement work is eligible for governmental aidswhich can considerably reduce the bill. We recommend that you visit myguichet.lu For more information;
• The new is often seen as the ideal option, as one can enjoy a 'ready to use' home. While these homes are finished to a high standard, they are also much more expensive than older homes (an average of €2,268 more per m²). However, you usually have to wait 12 to 24 months before you can move in: the time it takes for the construction of the building to be completed. And when you buy your main residence, it's hard to wait that long to move in! New buildings can also have their share of surprises: you can never be sure that there won't be seepage, boilers that aren't fully operational, an Internet connection that isn't yet up and running, an unexpected thermal bridge or poorly done soundproofing work. However, if you want to make it your main residence, you can benefit from tax credits on registration fees when signing the sale This can save you several tens of thousands of euros on the operation (for more information, go to here). Finally, when you buy, you only pay registration fees on the area built at the time of booking the property.

If the balance tends to tip in favour of new, this does not mean that the old one is to be excluded. In the end, it's all a matter of taste. This is the home in which you will live for several years. If you have fallen under the spell of an old house during a visit: opt for an old one.

3. Start your search and find your dream flat or house in Luxembourg

Do you know when and in what type of property you want to live? Perfect, now it's time to start looking and visiting. Don't be afraid to make as many visits as possible This is necessary to get a real idea of what is available on the market and what to expect from it. Another very important piece of advice: keep an open mind...

• If you want a flat: Don't be surprised if you have a view of the road (which is very common in Luxembourg). The insulation can be very good, you can also have all the amenities nearby: a bus stop, a crèche or a supermarket at the foot of your building. Be open-minded and look for the right compromise between your expectations and reality.
• If you are looking for a house : make concessions. You will not find the villa with swimming pool of your dreams within walking distance of your work. In this case, choose the best compromise according to your visits: do you prefer a small house with 3 floors, without garden, in the centre of Luxembourg or in the surroundings? Or a larger house with only 2 floors, a small garden and a terrace, but 45 minutes by car in traffic jams? It's all a question of choice. In the end, it's up to you.

Make a checklist so you don't forget anything during the visit

You can prepare your checklist in advance as a reminder for your visit. This list will contain all the checkpoints you need to do, and there are many!

There are those that are visible such as :

• Kitchen equipment
• Heaters
• Floor or wall coverings
• The storage units...

It's what you look at and see first. But there are also less obvious things that we don't necessarily think about. It is better to write them down.

Some examples of items to include on your list:

• Windows and doors : Is the thermal and sound insulation of good quality?
• The shutters : Are they in good condition and well blacked out?
• Television and Internet : check the sockets and the network
• Sockets: Are there enough of them, are they well placed?
• Look for signs of moisturetry the taps
• Control the exposure with the compass of your smartphone
• Property charges : How much does the current owner pay, for example, if it is a condominium? But also the charges such as electricity, gas... This will give you a complete idea of what to expect.
• Ask questions about your neighbourhood. Indeed, if you visit the property in the middle of the day, it may be very quiet. But what about the weekend and the evening?

In any case, make as many visits as possible: the confrontation between your expectations and the reality of the market will automatically lead you to make the right choices according to your priorities.

Another piece of advice: in a market as tight as the Luxembourg property market, it is important to give yourself every opportunity to find the perfect property. In order not to miss out on any advertisements, don't forget to download the atHome application: you will receive notifications as soon as a new property corresponding to your criteria is published. You won't miss a single listing.

4. Successful visits... and standing out to win the purchase of the property

Now that you have a clear idea of the home you want to buy, it's time to ask the big question: what is my financial envelope for my project?

There are several options for estimating your budget:

• Make an appointment with your usual bank
• Make an initial estimate online
• Meet a mortgage broker

The latter option would allow you to obtain a certificate of borrowing capacity.
This is a valuable document that indicates the maximum amount you can borrow. Several parameters will be taken into account, such as the debt ratio and the duration of the property loan.

A real asset in your property search as it allows you to :

• Knowing how far you can go: your broker defines with you your borrowing capacity based on various data: your profile, your income, the type of property you are looking for...
• Stand out during your visits: as you know, estate agents and landlords are in great demand: with your estimate you reassure them of your abilities and you also prove your seriousness.
• Be ready for the next step: once the compromise is signed and thanks to your first visit, your broker will be able to launch the loan applications for your purchase very quickly.

How to get this real estate sesame?

To obtain an estimate of your borrowing capacity, nothing could be simpler: simply meet with an atHomeFinance broker, who will evaluate your capacities with you. An appointment is free and without obligation.

Now that you know what your ideal property would look like and what your budget would be, you can start visiting with peace of mind. At the same time, look at the financing of your project: how does a loan work? How much can I borrow? What kind of fees should I expect?