Consumers urged to consider implications when buying a house

This according to Steven Barker, head of home loans at Standard Bank, who highlighted how consumers nowadays were considering all the financial advantages and disadvantages associated with purchasing a house.

“Despite the challenging economic conditions that prevailed during last year [and which] extended into this year, there is a growing interest in home purchases, indicating that the residential market is strong,” he said.

He added that buyers were now evaluating all the costs involved before taking the plunge, whether it relates to buying a house or moving from an old house to a new one.

These included examining the transfer and legal costs involved in buying a property and considering rates, taxes and sectional title deeds when calculating affordability.

“Consumers are also assessing the cost of moving households and the implications of making physical changes to a new home,” he said.

“Where these costs are considered to be excessive and outweigh the advantages of moving in the eyes of potential buyers, many customers opt to apply for finance to improve their properties by renovating or building additions.”

Barker concluded by saying that the trend of first-time home buyers was expected to continue as interest rates are still low enough to encourage people to take their first step onto the property ladder.

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