What you need to know if you’re moving from renting to buying
Deciding to buy a home is a big decision. Make sure you’ve considered all the facts before you take the plunge.
If you’ve been renting a home for a while and are ready to take the next step and buy your own home, it’s important to do your homework and know exactly what you’re getting yourself into, Sandton Chronicle reports.
Dr Simphiwe Madikizela, head of special projects at FNB Housing Finance, said many first-time buyers usually get blinded by the excitement of owning their own home and overlook the importance of research, which ends up costing them more in the long-term.
Apart from the home loan application and registration process, there are a number of other important factors that one needs to consider when owning a home:
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Future needs
Avoid buying a house based only on your current needs, rather take a long-term view and consider whether the house will still cater to your family’s needs in the future. For example, a two-bedroom house may be perfect for newlyweds, but could soon be too small as the family expands.
Amenities
While you may get a bargain when buying a spacious house outside of town, you need to consider factors such as your work premises, medical centres and schools for your children. It may end up costing you more money and time to travel on a daily basis.
Free-standing or Sectional Title
When renting, you don’t often put as much time and money on maintaining the property, depending on the agreement with your landlord. When you own the property, you will be responsible for making sure that the property stays in good condition at all times.
On the other hand, when buying a townhouse, you will be liable for a monthly fixed cost for levies and rates and taxes, over and above the mortgage loan instalment due to the bank.
Buying an old house
Buying an old house for a reasonable amount in a good neighbourhood may not be such a bad idea. However, what many buyers often underestimate, is the cost of fixing up the house. Furthermore, without a professional inspection, there may be other hidden defects that you would only discover once you move in.
Neighbourhood safety
While no area is exempt from crime, it is essential for first-time owners to research crime statistics in the area before buying. For example, if you have a job that requires you to travel a lot, leaving the house unguarded, you could easily become a victim of crime.
“Lastly, always save for rainy days, as life is unpredictable. When moving from renting to buying, it is advisable to save at least six months of your home loan and monthly expenses, even if your job is not under threat. This will create a good safety net and give you peace of mind should anything go wrong,” concluded Madikizela.
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