PROPERTY NEWS - If you have been thinking of buying your own home, then now might be just the right time to do so, according to the Seeff Property Group.

The recent interest rate cuts have brought down the cost of home loans, making homeownership a little more accessible for first-time home buyers. 

Given that prices have remained fairly flat over the last two years, now might just be a great time to take the leap to homeownership, says Samuel Seeff, chairperson of the Group.

The benefits of putting your money into your own home cannot be overstated. He says while it is a big financial commitment which should not be taken lightly, it is one of the best things you can do for stability, building wealth, and securing the roof over your head.

Seeff says we are in a favourable cycle for the interest rate to come down further during the first half of this year. 

You, however, do not want to wait for more rate cuts as a sudden increase in buyers could make it more competitive, and you could end up paying higher prices.

Prospective buyers should use the opportunities available to negotiate a better price if they can. Do this by going through a pre-approval process for a home loan so that you can put in your offer with confidence. 

Co-buying could be a solution if you are unable to afford the property on your own. You should also ensure you are able to fund the transaction costs, or that you are able to include that in your home loan if that is available.

Seeff also advises that you buy sensibly. Instead of overcommitting yourself, you can rather start small and grow with your needs. Buy an apartment if that is all you can afford. You can always upgrade later as your financial position improves. 

Or you could buy a smaller or an older house that you can upgrade and extend as your needs grow.

Property is a long-term investment. It takes at least five to seven years before you will start making a real dent in the capital borrowed. Invest as much spare cash into your property and aim to pay it off as fast as you can. 

Your home is an asset, and you should treat it as such by taking care of it to preserve and potentially grow the value.

Know what you are in for compared to a rental, owning your own home does come with additional expenses. Aside from the monthly home loan repayments and utility and upkeep costs, a homeowner is also responsible for paying property taxes, something which tenants usually don’t carry.

You may also have to budget for levies. If you buy in a complex or estate, there will be additional levies for the upkeep of the common property, and security. Ensure you get a list of the additional costs beforehand so that you are financially prepared. 

You should also be provided with the rules and other conditions pertaining to living in the complex or estate.

If the property is older, you may need to budget for more maintenance. With an older property especially, you may find maintenance issues popping up from time to time, or aspects which need upgrading. 

While the structure and certain fixtures such as a geyser may be covered by homeowners’ insurance, you will need to budget for emergency repairs, as well as anything not covered by the insurance.

Keep your property maintained to retain its value. Building structures and fixtures deteriorate over time. Do regular maintenance like fixing leaky taps, broken hinges, handles, tiles and lights, cleaning gutters and so on to preserve your investment. 

This will be especially important if you decide to sell for whatever reason.

Be frugal with renovations and upgrades. Stay clear of fads and trends as these come and go. Since taste and preferences are unique to individuals, it is always advisable to stick with neutral upgrades which add value.

Keep your insurances up to date, both the homeowners’ insurance and well as insuring the content. Make sure the property is properly secured, and regularly test the security features.

Seeff says owning your own home provides a foundation upon which to build a life, raise a family, and build wealth. 

There are now short-terms gains in property, plan properly, do your due diligence and ensure you know what you are in for. Invest in your property to ensure it not only retains, but grows in value.

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