Embarking on the journey of purchasing a new home symbolises independence and a sense of accomplishment for the homeowner(s). Gone are the days of justifying late nights to parents, explaining unclean dishes, or waking up early for household chores.
While buying a property is undoubtedly a significant decision and investment, first-time buyers need not be overwhelmed if they follow some essential home-buying tips. In accordance with Standard Bank, we present some of the most crucial pointers to help you navigate the exciting world of homeownership with confidence and ease.
Affordability
Before looking for that dream home, know what you can afford. The best way to do so is to use an online home loan calculator that will give you an idea of how much you can borrow and how much your monthly bond repayments will be. Alternatively, you can visit a bank for an exact repayment amount and period.
Extra costs
Buying a home comes with some once-off additional costs: the deposit, transfer duties, conveyancing fees, and deed registration fees. In addition, there's also the cost of running a household. Apart from the levy, rates, and taxes, you may need to maintain a pool, hire a garden service, or pay for security.
Know what you're buying
You may view many homes in your search for the right one. Learn to see past the furnishings and ask yourself questions like Do the walls or plaster show any signs of dampness, or are there any structural cracks? Is the roof sagging? How's the neighbourhood in terms of location and security? Also, be mindful of any structural damage, rotten timber, and damp or faulty electrical, plumbing, and gas installations.
Have your paperwork ready
Don't wait until the last minute to get your documents in order. A South African ID, Latest payslip/s, and list of monthly expenses are the documents you require before you begin your home loan application. If you're sold on a home, save time and submit the offer to purchase as soon as possible.
All major banks across the country offer pre-approval. This gives you an accurate idea of the amount you qualify for so you can get the ball rolling with finding a home.
The deposit
In most cases, you'll need to make a down payment on the property. This will usually be 10-20% of the total purchase price, though you can choose to make it higher. The higher your deposit, the better your chance of the bank approving a loan for the remainder of the purchase price, and the lower your interest rates on that loan will be. There is also a 100% home loan option for first-time buyers, eliminating the need for a deposit.
Pay off any small debt
Most bond repayments are costly, and it is always recommended that you pay off any clothing, cellphone contracts, or vehicle repayments and always on time. If you're unable to settle any debts, always make sure that you're paying the required amount on time to avoid any marks on your credit score.
Use an estate agent
Using a real estate agent is in your best interest, especially when buying your first property. They will help you navigate the property market and the buying process. Aside from showing you properties and helping you find the perfect home, real estate agents can also offer advice.
Now that you've got the knowledge, it's time to shop! Head to gumtree.co.za or your Gumtree app (click for Apple & Android), and don't forget to use your location settings to find local service information close to home.
