DURBAN - With interest rates at an all-time low and Covid-19 lockdowns easing, there’s never been a better time to get into the residential property market.
Buying your first home is not just a major milestone though: it’s also a massive financial commitment.
Here are some tips on what first-time buyers should consider and how to make the buying process easier.
Crunch the numbers
Affordability is the single most important aspect to consider when buying a home. Set a hard budget by using an affordability calculator to determine the home loan amount you would qualify for.
Remember to factor in the upfront costs such as lawyers’ fees and the ongoing costs of ownership, including s rates and taxes, electricity and the general maintenance of the property. And if you fall in love with a house, but it’s beyond your budget, walk on by. It’s not worth the financial heartache.
Do your homework
Make a shortlist of your “nice-to-haves” and “non-negotiables”. In which area would you like to live? What size house do you need? Do you want peace and quiet or the buzz of a city? Do you want a free-standing house or do you want to live in a complex? These are the type of questions you should have answers for before you start your house-hunting. “It’s rare that people find everything they wish for in a house, so it’s important to know what’s important and where you can compromise.
Check out the security
As any South African knows, security is one of the top requirements for any property that you buy. Find out what security measures are in place in the neighbourhood or complex you like and try and find a house with as many security features as possible: good perimeter fencing, additional security measures such as barbed wire, electric fencing, burglar bars and security doors. There should also be an armed response company that regularly patrols the area.
Location, Location, Location
Ask any estate agent what you should look for in a property, and they’ll tell you “location”. The area in which you buy should carry as much weight as the type of property and its price tag. Find an area that best suits your lifestyle needs, particularly in terms of amenities such as shopping centres, proximity to work, schools and entertainment. Your new property shouldn’t only meet your home living needs, but also provide you with a convenient, rounded, general lifestyle.
Find a reputable agent
There’s a lot of admin and legal processes that come with buying a home. These include the process of applying for a home loan, the mandatory compliance certificates that the seller is required to produce, and property zoning laws. Find an estate agent that is on top of their game, knows the area and will serve your best interests. Having a competent and honest real estate agent who will listen to your needs and guide you through the process seamlessly is a must.
Finding an affordable home that meets all your needs is no easy task, but it’s an eminently achievable goal. The most important thing to remember is to do your homework, and have the tools you need - financial and otherwise - to make the right choice.
Marcél du Toit is the CEO of Leadhome
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