News & Advice Buying

With July’s National Savings Month well under way, it’s an inspiring time to start thinking about getting on the property ladder. “But it is essential to make the climb in as smart a way as possible,” says Francois Venter, Director of Jawitz Properties.Consider the following in your quest for buying your first home.”

Be practical about all your expenses

Your income is the most important factor determining the mortgage bond you qualify for. As a rule, your repayment should not be more than a third of your net income. What you may forget about including in your budget, however, is your other monthly expenses such as utilities and debit orders including paying off a car, your monthly contributions to various insurance coverages, savings accounts, or factoring in rising interest rates and inflation increases.

“You will need to be able to afford mandatory home insurance and can look at incorporating existing policies into a more affordable package that also includes protecting your home,” says Venter. “The best tip is to be conservative in your estimations – don’t spend your income to the max. You need to make allowances for unexpected expenses.”

Make use of the first-time buyer subsidy

To make your home loan more affordable, you can apply for a first time buyer grant as part of the Finance Linked Individual Subsidy Programme. Households where the gross income is between R3,501 and R15,000 per month qualify for a subsidy from the government provided no other grant has been applied for or no other property is owned, and as long as you and /or your partner are at least 18 years old and are South African citizens or permanent residents.

“The aim here is to reduce the initial mortgage loan amount so that the repayments are more affordable over the period of the mortgage loan. You can get in touch with the Department of Human Settlements for more information,” says Venter.

Shop around for a home and for a bond

When choosing a property, keep in mind how the neighbourhood could change over time.

“Look out for developments in the area, such as upgrades to public transport, or whether or not schools are close by. Always keep in mind the prospect of re-selling one day or the appeal of a property if you were to rent it out,” Venter adds.

It’s also important to apply to as many lenders as possible for your bond. “You may be able to achieve a better rate this way, or even be offered a higher bond to cover expenses like transfer duty or initial improvements that need to be made on the property you want to purchase. But never overextend yourself.”

Get a professional inspection

Consult a property expert to inspect the property you want to buy – make sure you aren’t buying into something that could cost you even more than you thought. “Also check what the rates are and whether they are accurate for the property.”

Use winter to your advantage

Beginning your property search in winter is a good way to see what a property is like in the colder months.

“Look out for leaks and assess how cold it is inside the property. Take note of how much the garden may need to be maintained – dryer months may require a lot of water to keep the grass looking good.”

Negotiate

A last tip is to negotiate the best price you can. “Some sellers may be open to this,” Venter concludes.

This article “6 Essential Tips For First-Time Buyers” was issued by Jawitz Properties SA.

Shares 0

Leave a Reply

You might also like...

10 Common Mistakes First-Time Home Buyers Make
5 Major Obstacles To Homeownership To Overcome
5 Things Every First Time Buyer Should Consider
New Generation Digs Now On The Rise
Western Cape House Prices Remain Steady
Investment hot spots – Waterfront and Clifton apartment prices hit historic highs despite economic lows
Sectional Title Scheme: NEW LEVY STRUCTURE Required!
South African Holiday Towns Now Underperforming Metros
Stronger Rand Makes South African Property Expensive For Foreign Buyers
Know The Risks Before Building Airbnb Castles In The Sky
Room Orientation And Natural Light: Beautify Your Space Naturally
What Will Residential Property Market Do In 2017?
4 Tips To Improve Your Home Value With These Holiday Maintenance Projects
Trump Win: What It Means For Real Estate In South Africa
How Millennials Are Changing The Real Estate Market
Making Your Property Work For You
Will Your “Smart” Home Attract More Buyers?
Green Buildings Catching On In South Africa
Investment hot spots – Waterfront and Clifton apartment prices hit historic highs despite economic lows
First-Time Home Buyer Should Act Sooner Rather Than Later
Buyers in Cape Winelands Predominantly Gauteng Semigrants, Increasingly Europeans
South African Holiday Towns Now Underperforming Metros
Time To Make The Right Choice For Retirement Living
5 Ways To Maximise Your Credit Rating
Budget Tips For A Smooth Switch From Renting To Owning
Buy First And Cut Your Stress Level
How To Avoid Buyers Remorse
Occupational Rent And Your Rights
How Millennials Can Save For A Deposit
Conveyancing Fees: What Are You Paying For?
6 Steps To Prevent Property Transfer Delays
10 Steps To Choosing The Right Investment Property
How Do You Know You Are Ready To Buy?
Create Home Buyer Appeal Through Home Staging
Is There A Difference Between Offers?
How To Decide When To Sell
Does My Agent Care About Me Or Just The Commission?
3 Questions To Ask Before Listing Your Home
I Just Bought A Home – Now I’m Unexpectedly Being Transferred
What Is The Difference Between Value And Marketability?
Time To Stage Your Home When Selling
Get Higher Offers On Your Empty Home
When Is The Best Time To Sell A Property?
How Important Is Financial Fitness For Home Sellers?
Real Estate’s Dirty Little Secret And Why It’s Costing You Money!
5 Top Draw Cards For Millennial Buyers
4 Home Selling Misconceptions Debunked
Selling A Home With Pets
New Generation Digs Now On The Rise
When Is Your Rent Due?
Gauteng Property Rental Market Forecasts Growth
Keeping Track of Parking On Common Property
How And When To Legally Evict Tenants
The Rental Housing Amendment Act: Waiting For Light In The Dark?
Tenants: Be Aware Of Ongoing Credit Checks
How To Rent With Pets
Is My Landlord Liable To Provide Security?
Why Are Property Inspections So Important?
Rental Property: To Furnish Or Not To Furnish?
Why Prevention Is Better Than Cure: Eviction Procedures For Landlords
Important Insurance Issues For Landlords
Stay In The Rental Market Or Buy?
The Major Benefits Of Buy-To-Let Investments
5 Mistakes To Avoid When Relocating
7 Tips For Packing And Moving Quickly
Moving? Things To Think About!
Maximising Small Spaces
7 Tips To Help Your Children To Adapt To The Move
What To Do With Your Home When You Have To Relocate
Moving With Pets Can Be Tricky
Estate Agent Moving Tips
Telltale Signs You Need A New Home
Seven Signs You Need A New Nest
Über Wealthy On The Increase And On The Move
Investment hot spots – Waterfront and Clifton apartment prices hit historic highs despite economic lows
First-Time Home Buyer Should Act Sooner Rather Than Later
Sectional Title Scheme: NEW LEVY STRUCTURE Required!
Buyers in Cape Winelands Predominantly Gauteng Semigrants, Increasingly Europeans
Dangers of Debt Consolidation Without A Plan
5 Biggest Downsides of Paying Off Your Bond
Push Into South African Real Estate Not Slowing Down
Problems Repaying Your Bond? Get The Banks In Your Corner!
How To Kill The Interest On Your Bond
Risk And The Role In Determining Insurance Premiums
Keeping Repo Rate Stable Makes Sound Economic Sense
Effects Of Higher Interest Rates On The Property Market?
How Will A Sub-Investment Status Impact The Property Market?
Is Property Still The Safest Investment In 2016?
Tips To Keep Up With Your Bond Repayments In Difficult Times
Know The Risks Before Building Airbnb Castles In The Sky
Green Buildings Catching On In South Africa
Digital Disruption And The South African Commercial Real Estate Market
Can You Run A Business From A Sectional Title Home?
What’s Driving Change In The Commercial Property Sector?
5 Ways Commercial Property Space Planning Can Save You Money
Investing In Commercial Property an Attractive Option
3 Obvious Signs That It’s Time For Office Relocation
3 Things You Need To Know Before Buying Vacant Land
Price Correction In Commercial Property Market
South Africa: Evolution of Industrial Properties
The Commercial Times Are Changing
Healthy, Sustained Demand For Commercial Property
Incoming Inspections Are Vital For Rental Property
Which Factors Cause Property Values To Increase?