Buying your first home may be on the cards, but there are mistakes you want to avoid when you are a first-time buyer. Buying a property that you cannot afford in the long run is one of these. Knowing practical tips to securing your first home is important. Here is what you need to know.
Assess what you can afford
There is what we want and then there is what we can afford. Being able to meet the middle ground on what you can afford and meeting your needs will make navigating the property ladder better. Just because you can save up for a deposit and be approved for a home loan doesn't necessarily mean you can afford your home. Consider if you will be able to meet your home repayments, the hidden costs, transfer duty, administration fees, ongoing costs, and insurance fees. Factoring the overall maintenance of your home along with the rates can give you a realistic picture of whether it will be worth the investment.
Shopping within your price band
Once you have assessed what you can afford, shopping for your new home will be easier. According to statistics by Lightstone, most first-time home buyers tend to enter the residential property market in the R700,000 - R1.5 million price range.
While a dream home in South Africa's cities with extra space and views to kill may be on most of our lists, it is important to start with something affordable. You may want to even consider houses that are further away from the city centre or small towns which tend to be suitable for anyone looking to get a step onto the property ladder.
Have the necessary paperwork ready
Eliminate the process of being frustrated by buying your first property by knowing what relevant paperwork you will need. Avoid missing out on your dream home by having these necessary things checked and completed:
Speaking to an estate agent can give you a better idea on what needs to be done and where you can strengthen your power to securing your first home.
Consider the hidden costs
The purchase cost is one of many costs that need to be considered when buying your first property. Factoring these in and planning for the additional costs that come with buying your first property can help you avoid any nasty surprises later. Things such as bond registration, transfer duty costs, moving costs, utilities, rates, and levies are some of the costs that can easily drive up the cost of owning a home.
