Your complete guide to first-time homeownership
Congratulations! You're finally financially secure enough to begin your search for your very own property. Buying a house can be a daunting task, so we have simplified the process as much as possible for you. Read on to discover what you need to know before signing on that dotted line.
Enter your real estate journey
Your biggest milestone is gaining the financial independence to be able to confidently search for a house on the market. Once you established your savings, built up your credit record and are happy with your income you can factor in details such as legal fees, transfer costs and home insurance.
Research your chosen location
The defining factor in property prices is the area you choose to live in. Affluent, wealthy suburbs are usually pricier than their city counterparts but offer a sense of security and quality of life that is incomparable. Study the local market for a few months before determining which area would be best for you. Look at the available amenities close by, future development plans and opportunities for growth before making your decision.
Use home loans to your benefit
South Africans who are first-time home buyers can enjoy the perks of having bank-pre-approved home loans, mortgages or private finance company loans. The option to finance your home purchase through a loan offers you more financial freedom and the ability to agree on a payment plan that works within your monthly budget. With dedication and proper financial planning, you may even be able to pay off your loan sooner than you expect.
Consider your property maintenance and upkeep
Depending on the size and layout of your property, you are going to have to allocate some money towards ongoing home maintenance. This includes monthly costs such as landscaping, pool services, cleaning and more. Unexpected expenses can also make a dent such as the repair of a broken window, replacement of light fittings, new roofing etc. Being a homeowner comes with its fair share of responsibilities and you must be prepared to dip into your rainy day budget to see to it all.
Get legal savvy
Once you have concluded the following:
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Signed your sales agreement
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Conducted property inspections
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Finalised transfer costs
You, your property practitioner and conveyancer can run over the important documents and details involved in handing over a property. The legal side to homeownership should not be taken lightly and can cause a great deal of unnecessary stress when not prioritised and done correctly. Having professional advice on your side makes a world of difference. Home insurance also falls under the aspect of legal terms, as it is imperative you understand the worth of your investment and your valuables. It is wise to get a comprehensive policy that is tailored to what you would need. Ensure you are protected against theft, environrmental damage and other unforeseen circumstances.
Property costs and security
As a homeowner, you will be expected to pay property taxes and levies (if you are in an area that operates within a homeowners association). These financial obligations need to be accounted for in your budget.
While private estates and gated communities have become popular in South Africa, it is still important to take individual security measures for your home. Installing an alarm system, outdoor lighting, burglar guards or security cameras can make you feel safer and deter potential intruders. This is especially worth considering if you are buying a freestanding property and want to take every precaution to feel safe.
Look at it as a long-term investment
Buying a home indicates stability, future vision and a plan to grow. Understand your property's potential and view it as an appreciating asset. This is a significant period in your life and is a stepping stone towards financial success and one that should be celebrated. Let Aska Property Group help you find the perfect home in one of our secure suburbs. Contact us today.
20 Mar 2024
Author Aska Property Group