This according to Francois Venter, director of Jawitz Properties, who has put together six essential tips for first-time buyers.
He advises buyers to be practical about all their expenses. “Your income is the most important factor determining the mortgage bond you qualify for,” said Venter.
He added that, as a rule, a buyer’s repayment should not be more than a third of his or her net income. “What you may forget about including in your budget, however, is your other monthly expenses such as utilities and debit orders, including paying off your car, your monthly contributions to various insurance coverage, savings accounts, or factoring in rising interest rates and inflation increases,” he said.
Venter said the best tip for buyers is to be conservative in estimations. “Don’t spend your income to the max because you need to make allowances for unexpected expenses,” he added.
Buyers have the option of making use of the first-time buyer subsidy. Venter said the buyer can apply for a first-time buyer grant as part of the Finance Linked Individual Subsidy Programme. “You can get in touch with the Department of Human Settlements for more information,” he added.
He said it is better for buyers to shop around for a home and for a bond. “Look out for developments in the area, such as upgrades to public transport, or whether or not schools are close by,” said Venter.
“Always keep in mind the prospect of re-selling one day or the appeal of a property if you were to rent it out.”
Venter also said that getting a professional inspection of the house before purchase is essential. “Make sure you aren’t buying into something that could cost you even more than you thought,” he added.
Winter can work to a buyer’s advantage when shopping for property. According to Venter, “Beginning a property search in winter is a good way to see what a property is like in the colder months. Look out for leaks and assess how cold it is inside the property.”
“Some sellers may be open to negotiate prices. A last tip is to negotiate the best price you can, it can work to your advantage.”
Join the Joburg North Local News whatsapp group and get live news updates sent straight to your phone.
Just send a whatsapp message with your name and surname to 079 4395 345
