Considerations first-time buyers should make

While renting a property has certain advantages, such as the flexibility to move around, buying a home provides the purchaser with an appreciating asset that they can call their own.

However, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, purchasing a property is also a far bigger commitment that requires careful consideration.

“It is vital for potential homebuyers to do the required research before making the final decision to purchase a property. Although it is an extremely rewarding endeavour, it is a long term commitment that should be given the necessary time and deliberation it deserves,” advises Goslett.

He provides a few aspects that every first-time homebuyer should consider when they starting the process of purchasing a property:

Calculate the cost

It is important to remember that the monthly bond repayment is only one aspect that needs to be considered when determining how much a buyer can afford. “Affording a home means also being able to pay for the other recurring monthly costs involved in owning and maintaining a property,” says Goslett.

He notes that it is imperative that the buyer selects a home that meets their budget in terms of what the full living costs will be and not just the bond repayment. Additional costs to consider would include 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 discuss and calculate these costs with an experienced real estate agent or a bond originator such as Betterbond.

Put fundamentals first

Even if the first property that purchaser buys doesn’t have any luxury features, it is important that they ensure that all the fundamentals are in good repair. While a list of defects should be provided to the buyer, it is still worthwhile to thoroughly inspect the property for any hidden defects. If there is anything that the buyer is unsure of, they should look into getting a professional contractor to inspect the property and provide a snag report.

Is there potential for growth or change?

While a property might meet the buyer’s current situation, because property should be viewed as a medium to long-term investment, it is best to opt for a home that can grow with the homeowner’s changing criteria. “Ideally it is best to find a property that both fits the buyer’s current needs, but has the potential to be changed to meet their developing requirements,” says Goslett. “While there is no sure-fire way of knowing exactly what the buyer will require in five years’ time, it is good to have an idea and consider what possible life changes could occur over that period. This might include a marriage or possibly a new baby – provisions need to be made for these milestone events.”

He adds that a home’s potential to grow does not only relate to its size, but also it’s potential to increase in value. “While a home is a place to live, it is also an investment – so it makes sense that the property being purchased has the potential to appreciate in value. Buyers should following the basic principles of home buying to ensure they give themselves the best chance at a good return on investment. These principles include buying in a good location, as well as checking area statistics and figures to ensure the home is bought at a fair market value,” says Goslett.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 25 May 2018
      Reliable public transport systems moving a mass of commuters to and from work, keep a city’s economy moving. Not only do they have a positive impact on economic growth, successful rail links also influence property values.
    • 25 May 2018
      The live, play and visit environment that Centurion Residential Estate & Country Club offers continues to attract buyers looking for a very specific lifestyle and ambiance.
    • 25 May 2018
      As expected, the Monetary Policy Committee kept the repo rate stable, with analysts and market commentators ahead of yesterday's announcement (24 May 2018) pointing to a more hawkish stance amid a weaker rand, somewhat less stable global environment, and an eye on the inflation outlook – coupled with the increase in VAT and sizeable hike in the price of fue
    • 24 May 2018
      Most real estate professionals agree that 2017 was one the toughest years to date; an eminently challenging 12 months that subdued even the strongest markets - including the country’s economic powerhouse of Sandton.
    • 24 May 2018
      These are uncertain and challenging times for the real estate industry, but the non-profit organisation Rebosa is fighting for their interests and finding pragmatic solutions to industry issues such as the urgent need to fast-track transformation says Richard Gray, Rebosa chairman.
    • 24 May 2018
      The decision to invest in property isn’t one that’s taken lightly, or dealt with flippantly. The same should ring true when deciding on an estate agent partner to handle the letting out of your property.
    • 23 May 2018
      Homeowners who are thinking of selling and “trading up” to a bigger or a better home had better be quick now if they want to get the best deal.
    • 23 May 2018
      The new Loftus Park development in Arcadia is really going to boost the demand for homes and rental accommodation close by and the neighbouring suburb of Sunnyside, says Gerhard Kotzé, MD of estate agency group RealNet Holdings.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us