select
|

5 Things every first time buyer should consider

While renting a property offers a tenant the luxury of selecting a home that meets their short term needs, purchasing a home is a far larger commitment that requires careful consideration. 

This is according to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who says that it can never be over emphasised how important it is for would-be homebuyers to undertake thorough research before they buy a property.
 
Goslett suggests five things that every first time buyer should consider as they begin the process of purchasing a property:
 
Is there the possibility for growth?

Due to the fact that property is a medium to long term commitment, it is important to look for a property that can grow with your developing needs. “If possible, buyers should shop for a home that meets their current requirements but also has the potential to adjust to a changing household. It’s not an exact science as your five-year plan may not pan out as expected, but it is a good idea to consider the possible life changes that could occur and impact your need for an extra room or additional space,” says Goslett.
 
But it’s not only growth in size that buyers should look out for. Goslett says that any property purchase is an investment, so it makes sense to ensure that the property being bought has the potential for growth in value too. “By following the basic rules of buying a property, such as adhering to the adage of location, location, location, and checking area statistics and figures to ensure that the home is being purchased for fair market value, buyers can be fairly certain that their investment will see capital appreciation over the long term.”
 
Make sure of the basics


While the first property you buy may not have many luxury features, buyers must ensure that all the basics are in good condition. According to Goslett, the property should be thoroughly inspected to ensure that there are no hidden defects that could be costly to repair. While a list of any known defects should have been made known to the buyer, it is still worthwhile to enlist a professional inspector to take a look at the property.
 
Everything has a lifespan

Along with identifying aesthetic and structural defects, it is important to look at features of the home that are currently in good condition but may need to be replaced in the near future. Everything has a lifespan and may require repairs at some stage, so look at the condition of features such as roof and flooring. How long will it be until these need to be placed? Researching the expected remaining life on large-ticket items can help you plan for the future.
 
There is no perfect home, just the right home

It is likely that the first home you buy will not be perfect, but it’s important to make sure that it is the right home for you. “The way to ensure that you are buying the right home is by prioritising the elements that you can’t do without, nice to haves and the things you are willing to compromise on. Although a double garage is nice to have, it may suit you more at this point to have an additional bedroom or larger garden. The importance of each of the features offered will depend entirely on the buyer’s personal tastes and needs,” says Goslett.
 
Weigh up all the costs


Buyers need to remember that it is not just the bond repayments that need to be budgeted for and considered. There are other recurring monthly costs involved in owning and maintaining a home. According to Goslett, it is vital the homebuyer selects a property that meets their budget in terms of what the full living costs will be and not just the bond repayment. Things to consider would be the cost of the utilities, rates and taxes, levies and maintenance costs. These are not costs that are considered by the bank when approving finance, so it is important to calculate these costs with an experienced real estate agent or a bond originator such as Betterbond.
 
“In terms of the financial commitment and length of time that homeowners are likely to be in the same home, buying a property requires far more homework than renting. To ensure that the correct decision is made, which will result in a return on investment and more importantly their happiness, buyers should take the time to weigh up all the options available to them,” Goslett concludes.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 Jun 2018
      The rental market in many Johannesburg suburbs has shown encouraging signs of revival this year but it remains a competitive market and landlords who best cater to their market’s needs will reap the healthiest returns.
    • 22 Jun 2018
      Home design is constantly evolving to reflect the changing needs of society. We look at some of the ways in which our use of space is changing.
    • 22 Jun 2018
      While estate agents can help the seller with correctly pricing the property and marketing a property to the right pool of potential buyers, at the end of the day it’s the impression that the property will make on buyers that counts the most.
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK