How to purchase your first home in 2021

With interest rates at historic lows and slowed house price appreciation, there has never been a more appealing time for first-time buyers to enter the market than right now.

According to the regional director and CEO of RE/MAX of Southern Africa, Adrian Goslett, buyers who enter the market now will be somewhat comparable to those who purchased during the 2008 market crash; the biggest difference being that the market is recovering much quicker than it was back in 2008.

To achieve a new year’s resolution of becoming a homeowner in 2021, Goslett recommends that buyers develop a strict financial plan for the new year.

“Becoming a homeowner depends, in part, on one’s ability to create a plan with a realistic timeframe and having the ability to stick to it.

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“Buyers need to analyse their current income as well as their investments and set up additional savings schemes that will ensure the procurement of the funds needed to obtain their goal within the desired timeframe.

“Meeting with a financial advisor can be helpful in this regard,” said Goslett.

The next step would be to get in touch with a bond originator, to acquire pre-approval for a home loan. A bond originator will determine the amount for which a buyer qualifies. This will prove helpful when setting up a budget for the house hunting process.

Once buyers are ready to begin the house hunting process, Goslett recommends that they reach out to a local real estate professional who can guide them in the right direction in terms of where to look for homes that are within their budget.

“Real estate professionals also know the available stock on the market and can therefore advise on the likelihood of finding a home that meets the buyer’s search criteria before the year is out,” Goslett explained.

With all the information gained, buyers will then need the determination to stick to the plan.

“Your dream of owning a home can become a reality provided you take the necessary steps to ensure that you have a concrete plan and the self-discipline to follow through on that plan.”

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