PROPERTY NEWS - Following the recent interest rate hike on 23 September, many prospective first-time buyers might be feeling anxious about entering the property market. However, higher interest rates do not necessarily mean putting homeownership plans on hold.
Remax Southern Africa shares some practical tips to help first-time buyers navigate the property market with greater confidence and ease.
Know what you can afford
“With life getting more expensive, it’s important to have a clear understanding of what you can realistically afford. This extends beyond just the monthly bond repayments. You also need to factor in costs such as transfer duty, conveyancing fees, rates and taxes, and bond registration costs,” explains Adrian Goslett, CEO and regional director of Remax Southern Africa.
“Additionally, if you’re considering buying into a sectional title scheme, you will also need to account for monthly levies. Beyond these expenses, make sure there is enough room in your budget for ongoing maintenance and unexpected repairs that come with homeownership.”
Get pre-qualified for a home loan
If you plan to finance your purchase with a home loan, instead of buying the property outright, it is advisable to get pre-qualified before you start house hunting. This goes hand-in-hand with understanding what you can afford, as pre-qualification provides an indication of the bond amount you may qualify for.
“Getting pre-qualified for a home loan can help you narrow your property search to homes within a realistic price range and avoid falling in love with a property that stretches your budget too far,” says Goslett.
Prioritise needs over wants
We get it. You might dream of having a large garden, swimming pool or extra entertainment space, but these features can also push up the purchase price and ongoing costs of owning the home.
“When buying your first property, focus first on the things that will have the biggest impact on your everyday life, such as location, commuting distance, number of bedrooms, security and enough space for your needs. Once those essentials are covered, you can consider which additional features your budget allows.”
Have the long-term plan in mind
While this might be your first home, you shouldn’t view it as a temporary decision. Buying and selling property comes with various costs, so purchasing a home that you are likely to outgrow almost immediately could become an expensive decision.
Think about how your needs could change over the next few years. You might need an extra bedroom, work-from-home space or easier access to schools and other amenities.
While nobody can predict exactly what the future holds, choosing a property that offers some flexibility could help you stay in the home for longer.
Work with an experienced professional
“Buying your first home involves a number of unfamiliar steps and working with an experienced real estate professional can make the journey a lot easier. Don’t be afraid to ask questions,” concludes Goslett.
Issued by Kesia Cloete
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