Q: How do I know if I’m ready to buy?A: If you have a steady and reliable source of income and have established how much you can afford to spend. You have set aside money for a deposit or down payment some banks and bond originators will include the deposit in the loan amount for first time home buyers). You have worked out your budget and can afford to pay for those hidden or unexpected costs such as Bank Rate Hikes, property Taxes (Water, Sewerage and Refuse Removal) and have set aside funds to cover legal fees, moving costs etcetera. If you have answered "yes" to the above you are probably ready to buy your first home.
Q: How do I select a Real Estate Agent?A: Shop around and chat to a few Agents before making your decision. Select an Agent you feel comfortable with and who listens to your needs. Buying a property is one of the biggest investments you will make therefore, it is really important to choose and Agent you trust.Tip: Where possible a good Agent will make an appointment with you at your current residence to check out the size of your furniture and appliances that you wish to take to your new home – this way they can make informed recommendations.
Q: How do I get the most out of my Real Estate Agent?A: Be upfront and honest with your agent in terms of what you are prepared to or can afford to spend. Communicate your needs clearly – including your wish list but be realistic. If your relationship is built on trust and openness your Agent is far more likely to go that extra mile for you.
Q: What should I be on the lookout for when deciding where to live?A: Don’t rush to buy in an area you don’t know, do you your home work first. Look at enough properties in the area so that you can make informed comparisons - why certain like-for-like properties in the area are more expensive than others. Check out amenities such as schools, shopping centres, transport hubs etcetera. Be on the look out for a sudden surge of property sales in the area, these could be due to development, municipal re-zoning or a high crime rate – you don’t want to be caught by surprise.
Q: What do I need to take into account when buying a home?A: Is there enough room for both the present and the future? Are there enough bedrooms and bathrooms? Is the house structurally sound? Do the mechanical systems and appliances work? Is the garden big enough? Do I like the floor plan? Will my furniture fit into the space? Is there enough storage room? (Take a tape measure along to better answer these questions.) Does anything need to repaired or replaced? Will the seller repair or replace the items? What are the neighbours like?
Take your time and think carefully about each house you see. Ask your real estate agent to point out the pros and cons of each home from a professional standpoint.
Tip: Location, location, location is paramount. If you can’t afford the best out there rather buy a smaller house in the best area.
Q: When is the best time to view properties?A: There is the perception that more people buy in summer as properties tend to look more attractive although there is no right or wrong to view or buy. Imagine the house in good or bad weather and in each season and whether you will be happy with it year-round?
Q: How do I apply for a bond?A: There is the traditional route of applying directly to your bank or you could make use of a reputable bond originating company.
The trend is moving towards making use of bond originating companies as they shop around (with all the major banking groups) and negotiate the best possible deal on your behalf. This is a convenient and time efficient way to shop around for your bond – they will also take you through a step-by-step process in terms of what you will need to provide to secure a bond.
Q: Do I need a pre-approved bond before starting to house hunt?A: The first thing you need to do if you’re not sure of your credit rating is to contact the credit bureau to check your standing as this may affect your bond application – especially in light of the strict criteria set down in the new credit act. One does not obtain a pre-approved bond per se but you can certainly get yourself pre-qualified (this means you will know exactly how much the bank is willing to loan you). How this works is that the will take your income and monthly expenses into account to get to your disposable income – it is this amount that your bond limit will be based.
Q: Do I need to arrange a home inspection?A: No, the onus is on the seller to undertake electrical and beetle certification at his expense. But, it is recommended that you do visual inspection and note anything you want repaired so that it can be listed in your offer to purchase agreement.
Herman Louw of ‘Team HJ’ advises “Don’t wait until you can afford to buy that dream home (you may never get there if you wait). The first step towards buying your dream home is to start off with a smaller, more affordable property – then sell, buy, make a profit until you get to your dream home.”
Contact Information:Karin Parsons 021 686 1293 082 465 7755The Parsons Project27 Hornsey Road Mowbray7700Team GoodmanRe/Max Property AssociatesBlouberg Road Table Viewwww.remaxpropertyassociates.co.za
