Top tips for first-time homebuyers
Many prospective first-time buyers may be feeling anxious about entering the property market given current economic circumstances. However, this does 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 the cost of living rising, it is important to have a clear understanding of what you can realistically afford. This extends beyond 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 are considering buying a property in a sectional title scheme, you will also need to account for monthly levies. Beyond these expenses, make sure your budget allows 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 rather than buy 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 loan 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
You might dream of having a large garden, swimming pool or extra entertainment space, but these features can also increase the purchase price and ongoing costs of owning a home.
“When buying your first property, focus on the things that will have the biggest impact on your everyday life, such as location, commuting distance, the number of bedrooms, security and sufficient space for your needs. Once those essentials are covered, you can consider which additional features your budget allows.”
Think about the long term
While this may be your first home, you should not view it as a temporary decision. Buying and selling property involves various costs, so purchasing a home that you are likely to outgrow almost immediately could prove expensive.
Think about how your needs might change over the next few years. You may need an extra bedroom, space to work from home 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 your home for longer.
Work with an experienced professional
“Buying your first home involves several unfamiliar steps, and working with an experienced property professional can make the process much easier. Do not be afraid to ask questions,” concludes Goslett.
