The checklist buyers shouldn’t forget

Buying a home is a big decision and there are plenty of hints and tips to help buyers with the process.

However, says Francois Venter, director of Jawitz Properties, there are some aspects you should consider that you may not have thought of before.

When you buy a home, you are actually making two purchases – one is the property and the other is the money you are buying (the bond) to pay for the property.

If interest rates rise by 1 percent, the price of your home would need to go down by 10 percent to ensure the same monthly payment on your bond. You need to pay attention to interest rates – they add much more buying power to your purchase than low prices. Interest rates are low at present, so this is a good time to take out a bond, but be sure to budget for interest rate changes so that your property will still be affordable over the long term.

Read the fine print – You may fall in love with a property just by looking at the brochure, but you every home generally comes with at least one problem.

“If you get an inspection report for the property, you may find that it is actually full of little problems, covering pages and pages and pages of the report,” says Venter. “However, unless something serious has been revealed, keep the inspection report in perspective as perfect properties don’t exist.”

Cash buyers beware – Buyers who take bonds are normally required to take out building insurance. Cash buyers, on the other hand, may not even think about such cover.

“It is so important to have insurance in the case of a natural disaster affecting your property,” says Venter. “Damage caused by a fire or flood can be very costly to repair and cash buyers should really be aware of the importance of having adequate insurance cover. Also remember to shop around for the best quote.”

If you have a bond, you could simply accept the building insurance offered by the bank, but you may find a better, more affordable options from another insurance company. Shop around like you would for car insurance, says Venter.

“An estate agent shouldn’t just be a salesperson but should be your partner in the process of finding your home. Have a clear understanding between yourself and your chosen agent as to how your relationship will work. Feel free to settle important questions from the outset such as how your communication should take place – sms, email, phone – and how much time will be needed to arrange viewings of properties,” says Venter. “You are also part of this relationship so the boundaries and decisions agreed upon are your responsibility too.”

Most people end up selling their home one day. So before you buy, think about how others may view your home and if you are likely to sell again easily and if you should spend money on renovating or if that would be overcapitalising. Although the old adage in buying a property is ‘location, location, location’, Venter says buyers should think along the lines of ‘price, accommodation, location’ – in that order, before signing on the dotted line.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 26 Apr 2018
      Banks are showing an increased appetite to lend according to first quarter (Q1 2018) property statistics recently released by ooba, South Africa’s leading home loan originator.
    • 26 Apr 2018
      Moving into a new home comes with such a long list of expenses that one often searches for ways to cut back on costs. Hiring a professional moving company is one of the first expenses that many buyers tend to try and work around, especially now that purse strings are even tighter owing to the VAT increase that took effect this month.
    • 26 Apr 2018
      Investors looking to buy a property offshore can potentially recoup their money faster through short-term rentals than traditional letting options, all the while earning income in a foreign currency.
    • 25 Apr 2018
      Whether you are a seasoned seller or new to the game, putting your home on the market is an exciting moment. To ensure you get the best possible outcome these 8 value adding additions to your home is worth the effort.
    • 25 Apr 2018
      After four years of unprecedented growth fuelled by semigration, the Southern suburbs market faced a number of challenges in 2017, including dwindling affordability and a marked slowing in house price growth with many sellers forced to lower their prices in order to secure a sale.
    • 25 Apr 2018
      Mall of Africa, is celebrating its second year of sensational success. This splendid super-regional shopping centre first opened on 28 April 2016, and has grown in popularity, performance and profile since then.
    • 25 Apr 2018
      While the role of trustee in a sectional title scheme is a voluntary and unpaid position, it is one that comes with huge responsibility. Trustees have a fiduciary duty towards their scheme, says Chinelle Hewit, Operations Manager at sectional title finance company Propell.
    • 24 Apr 2018
      The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us