select
|

A winter solution for frozen buyers

Cars need anti-freeze in winter and so, it seems, do many potential homebuyers who find themselves stalled now in the search for a suitable property.

“Part of the problem,” says Jan Davel, MD of the RealNet estate agency group, “is that there is just so much to choose from in the current market that many prospective buyers worry about missing something better – and possibly cheaper – if they make a purchasing decision too soon.

“On the other hand, some buyers just freeze up at the idea of having to make a long-term financial commitment. Even though they are keen to become homeowners and believe they have found the right property, they just can’t bring themselves to sign an offer.”

And, he says, since the purchase of a home is one of the most important and far-reaching financial decisions most people will ever make, this state of uncertainty is not something they should ignore.

“You should never discount your instincts but rather take the time to backtrack and find out what is causing the conflict between wanting to buy and being unable to make a decision. In our experience, the root cause is usually a concern about money and fortunately, there are several constructive ways to address this concern and proceed with your homebuying plans.

“You can start, for example, by asking an agent you trust to show you some more homes in a lower price bracket. It is prudent to buy for less than you can actually afford and create a buffer for yourself in case of financial emergency, over and above the margin that most mortgage lenders are now building into their loan qualification calculations to ensure that borrowers will be able to cope with the rising costs of home ownership and maintenance as well as possible interest rate increases."

Or, says Davel, if you’re intending to buy primarily because you plan to start a family, perhaps you need to reassess your ability to accomplish two big financial goals at the same time. "It is hard to cope with a mortgage and burgeoning family expenses all at once - and constantly having to worry about cash flow does tarnish the pleasure of home ownership.

“The answer is to be realistic at the outset about how your financial pie is - and will be - sliced up, and if necessary to set your current sights on a less expensive home that will mean a smaller home loan repayment every month and the chance to eliminate other debts and improve your cash flow position. That way, you’ll be able to buy and still retain your peace of mind.”

And finally, he notes, if what you’re worried about is the future of the property market and its possible effects on the value of your investment, you need to know that any home that you can comfortably afford that is in good condition and a good neighbourhood will be a good investment over time.

“What you should be more concerned about is buying your own property and starting to build wealth as soon as possible instead of continuing to pay rent while you sit on the fence.”



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
    • 14 Feb 2018
      While you may not have intended to place your home on the market, what do you do if you receive an unexpected offer on your home? In areas where demand outweighs the current supply of homes available to buyers, it is not unheard of to have buyers make offers on homes that aren’t on the market, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      If you are looking to sell your home this year, Debbie Justus-Ferns, divisional manager of Renprop Residential Sales, says that there are five crucial things to do before the ‘for sale’ sign goes up.
    • 01 Feb 2018
      February is the month of love and to celebrate we will be posting about all the things we love this month. Follow the #MyPropertyLoves hashtag to keep up with our favourite things.
    • 01 Feb 2018
      After saving up and months of searching for the right home, applying for a bond and patiently waiting for the keys to the front door, it is finally time to cross the threshold and move into your new home. Now what?
        
    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