For every individual there will inevitably come a time in their life when they will look to buy a house or property. For many this process will be a confusing and overwhelming endeavour…

However, it does not need to be an unpleasant experience. By gaining a little knowledge about the processes and administration, involved one can make sure they can secure the house of their dreams. An individual looking at buying a home should strive towards their goal but not rush or make harsh decisions during the process.

People will tell you to buy property as soon as you can, and seeing that property prices are constantly growing there is definitely truth in this statement. One should however remember that we live in a world of opportunity and that you should not be pressurised into making an offer on a property. There will be more great deals on the market, so do not be pressurised by a real estate agent or property owner when looking to buy a house.

Make sure your credit history is as clean as possible. This will ensure that you will get the best interest rate and this will help persuade the bank to approve your application. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover. If you have not bought anything on credit, you should look at opening a clothing account or cell phone contract to start building a credit record.

Never over-extend yourself when buying your first property (or anytime in your life for that matter) as this could lead to a financial crisis later in life. If you are set on buying a house but cannot afford the home of your dreams quite yet, rather opt for an entry-level property at first. This will allow you to save money and eventually put yourself in a position where you can buy the house of your dreams instead of being stuck with a “second best” property that crippled you financially.

Before you go house hunting, get a pre-approval from Mortgage Plus Bond Originators – 0861 1111 93. This will save you the grief of looking at houses you cannot afford and will put you in a better position to make a serious offer when you do find the right house. It is seriously advisable to obtain professional help, in the form of a real estate agent. A deposit is generally put down when purchasing a property, generally somewhere between 5 – 10% of the sale price. Sometimes loans can cover 100% of the value of the property and sometimes even more than 100% in the case of First Home Loans. Speak to a Mortgage Plus Home Loan Expert regarding the different home loan options from all the financial institutions. Home Loan Calculators : Affordability Calculator, Bond Status Calculator, Increased Instalments Calculator , Minimum Income Calculator , Monthly Payments Calculator

Look for a reputable estate agent (or agency) and allow them to do their job, they will look to secure a deal that is best for you. A real estate agent will ensure that you will be signing a comprehensive document, which does not have any hidden loopholes or unnecessary costs. Real estate agents deal with this process on a daily basis and will be able to navigate it as efficiently as possible.

It is essential that you do your homework when signing a offer to purchase for a property. By gaining, an insight in regards to what other properties in the area have recently sold for, you can ensure you place a competitive offer.

With all of this said, you should not rule out the option of renting straight away. For an individual who intends on travelling or changing jobs in the visible future, buying a house might not be the best choice. It may be beneficial to rent a property and save your unused funds towards a deposit on a house in the future. This will give you greater financial freedom and will allow you enough time to search for the right property for you.

If you would like to speak to a Professional Mortgage Specialist about your lending requirements, please phone Mortgage Plus Bond Originators on:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Buying property privately in South Africa

If you decide to buy property privately without the help of a real estate agent, you need to understand how the process works in the South African real estate market. In this concise, but informative, buyer’s guide, we explain each step of the way to reaching your dream – to put you on the right track and hopefully make you realise that buying real estate privately is neither very different from using an agent, nor as complicated as it may seem.

Step 1: Work out the price bracket you can afford (Affordability Calculator)

This may sound obvious, but you would be surprised how many people actually overstretch their budget when buying a property, only to find it difficult to keep up with mortgage payments or realise that they have no money left over for any necessary property renovations.

Work out carefully the total amount that you can afford based on the cash you have in hand and on a proper mortgage evaluation from a couple of banks or lending institutions. By being pre-approved for a loan through Mortgage Plus Bond Originators, you will know where you stand and minimise the chance of being disappointed by the financial institutions “banks” at a later stage.

Keep in mind that this total sum will have to cover the purchase price, transaction fees and any immediate work you will have to do on the property before you can move in.

Step 2: Find out which areas you are interested in

Do some homework on the areas available. Browse the Internet for information on those areas that catch your interest. The websites of the Town Councils in the region you want are a good place to start. Also, use the Internet to make a quick search for property for sale online, to get an idea of what properties are available in your price bracket and where they are located.

Eventually, you’ll have to make the trip and visit the areas you are interested in for yourself. It’s best to get in your car, a good map and drive around so that you can get a better feel of the areas and their surroundings. On your way, keep a lookout for services such as shops, schools, medical facilities etc. It is also a good idea to visit at different times of the day and on different days to get a better idea of traffic conditions, weather and so on.

Step 3: Search for properties in your areas of interest

The best – and most convenient – place to start searching for your property is the Internet of course. If you don’t find what you are looking for online, you could check the classified adverts in local newspapers and magazines or even drive around the area looking out for ‘For Sale’ signs. Moreover, if you still cannot seem to find the right property for you on the private market, or if you would like to search concurrently among real estate agents in South Africa we recommend you look at our list of trusted real estate partners.

Step 4: Schedule viewing appointments with the property owners

Once you have identified one or more interesting properties, call the owners and get as much information about the property as possible over the phone. Choose the ones you want to visit and arrange a time with the owners for a viewing. Before your property inspection visit, you should come up with a checklist of points to look out for. This property inspection checklist we have prepared is a good place to start.

When you visit a property in the presence of its owner, it is common to feel like you are intruding into someone else’s life, especially if the property is being lived in. However, remember that as a buyer it is your job to inspect the property thoroughly and that the owner actually expects you to do this. Naturally, politeness and common courtesy will go a long way in this situation.

Most importantly, do not shy away from asking the owner any questions you may have.

Be sure to find out:

• the age of the property
• how long the seller has owned it
• why the house is being put up for sale
• how much community fees are (if applicable)
• the statutes and laws of the home owner’s community (if applicable)
• the location of and distance to nearby services
• evidence of planning permission for any alterations/extensions, etc.
• which furniture or fittings will be sold with the house (though remember you are buying a house, so don’t be swayed by fancy extras)

Step 5: Get an independent evaluation of the property (optional)

Although this is really an optional step, it is highly recommended that once you are very interested in a property, you have it inspected by a qualified real estate surveyor. The surveyor will be able to give you an objective appraisal of the property, tell you if the property is overpriced, and even point out any important things you might have missed.

If you are going to ask for a mortgage, you might want to coordinate with the bank on the property inspection since they will send their own surveyor anyway (whose fees you will have to pay) prior to considering your mortgage (home loan) application.

Step 6: Negotiate the price and terms of the sale

There is no reason to shy away from negotiating when you buy property. In fact, it is usually an integral part of the process.

How much you can negotiate price-wise will largely depend on three things:

• how long the property has been on the market
• how urgently the seller wants to sell
• and how much interest the property is attracting from prospective buyers

On the other hand, as a buyer, you must stick to your budget and discard a property if the seller is unwilling to drop the price to something that you can realistically afford.

Keep in mind that by selling privately, the seller is saving thousands of Rands in real estate agent fees, so, in a private sale, there is that much more leeway for negotiating a price below the actual market value of the property. The seller may also be more willing to drop the price a bit if they have demanding sales terms that you can accommodate (for example either a very short or more drawn out transaction period).

Once you have agreed upon a price and upon a date when the sale will take place, you will sign an Offer to Purchase / Sale Agreement laying out all the terms of the Offer to Purchase you can start arranging your new home loan or mortgage finance with Mortgage Plus Bond Originators.

If you would like to speak to a Professional Mortgage Specialist about your lending requirements, please phone Mortgage Plus Bond Originators on:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za