While each home buyer will have their own criteria as to what their home must have based on their life stage and personal preference, there are a few key elements that home buyer’s in the current market seem to agree on, RE/MAX of Southern Africa.

The right price

According to RE/MAX the first thing that the majority home buyers must have is an affordable price tag, especially first-time home buyers because they often don’t have the equity from selling a property to roll into the next purchase. Although aspects such as space and the aesthetic appeal of the home are important, for most part the financial elements and affordability are top priorities.

“It is important for buyers to have a budget and make sure they stick with what they can afford. Buyers shouldn’t overextend themselves in the current market as it is highly likely that if they do, they will experience financial pressure in the foreseeable future. With house prices decreasing over the past few years, as well as the current low interest rates, properties that were previously unaffordable to many home buyers are now within reach. This has significantly opened up the market to buyers who now have more options available to them while still managing to stay within their budget limitations,” says RE/MAX.

A home that meets future needs

RE/MAX says that although it is impossible to know what the next ten years may hold, the reality is that many home buyers will be in their home for longer than they think. It will pay off to purchase a home that doesn’t just meet the criteria now, but also in the next five to ten years.

“Property is a long term investment. A must-have now may not be one in a few years, so home buyers should look at property and ask if they can see themselves staying there for a while and what the future looks like. Is marriage on the cards or perhaps children?  If so, then an extra bedroom would probably be of higher importance than granite counter tops.

A prime location

It might be an old cliché but there is certainly a lot of truth to the location, location, location adage. This mantra rings true for home buyers in any market; location will always be high on the must-have list. Whether it is a question of lifestyle or good return on investment, buying a property in the right location will be one of the most important decisions a buyer can make.

RE/MAX notes that vital aspects to consider when deciding on a location would be:

Proximity to your place of work.

• A location convenient to local amenities such as medical facilities and shopping centers.
• A neighborhood / estate or complex that is well-maintained and is aesthetically pleasing.
• Buyers with children or plans for a family should look at the quality of schools in the area.

“Try to find an area that is established and has a history of solid returns that have been stable over the long term. Look for areas that have kerb appeal that are well maintained and where there are more owners than tenants, as owners will predominately want to protect their investment by keeping the area well looked after.

A house that has been properly maintained

Buying a house that has been properly maintained by the previous owner can help alleviate a large number of costs in the future. He says, “With the introduction of the Consumer Protection Act many buyers are insisting on the list of defects that the act prescribes, even though legally it may not be applicable. It is important for them to know that they are purchasing a property that is in good repair.”

While a quick run through and spot check of the home can help buyers sift through their options and narrow down the property they would most like to purchase, it is best to have a professional inspector undertake a thorough check and advise accordingly.

Contemporary updates in key areas

Although the property may not be completely renovated, there are certain areas of a home that buyers place a higher priority on, says Goslett. This is because there are some rooms in a home where renovations will add more value in terms of resale at a later stage.

For example, kitchens and bathrooms are known to get sellers the best boost in value, with many sellers recouping as much as 80% of their renovation costs on a kitchen and between 65% and 75% of the costs of remodeling a full bathroom. “These two areas of a home are the most important to buyers when looking at prospective houses. If they have been renovated or simply updated by the previous owner, it will have a big impact on the overall appeal of the home.

Goslett concludes by saying that given the fast options available to buyers in the current market, sellers should take these must-haves into consideration when wanting to successfully sell their property in the shortest possible time.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

What Every First Time Homeowner Should Know About Home Loans in South Africa

For many first time homeowners, finding a property that meets your needs is something that may take months to achieve. Whether you are searching for a compact family home that offers the perfect place for your children to grow up in, or a new apartment in the city, the search for a property that is in the right area, at the right price, with the right

features is no easy task. In the same way, finding the right partner for home loans in South Africa should also not be something that is done in haste.

Choosing a home financing provider without understanding exactly how the process works can cost you a fortune in hidden fees, high interest rate and unrealistic payment terms. Instead, take the time to find a financing partner who understands your specific needs, who will be able to work with you each step of the way as your financing needs change.

Some of the factors regarding home loans within South Africa include:

• Interest rates – these will change over time, but to begin with you should be getting a competitive interest rate that will not break the bank. Fixed interest rates are set at the same amount over time, while variable interest rates change as your financial needs change.
• Payment terms – depending on your budget and needs, payment terms can be selected over anything from ten to 20 years. This will allow you to afford your new home without falling into serious debt, with payment plans spread out over time to ensure that you can easily make your monthly payments.
• Loan qualification – you will qualify for different sized home loans depending on your income. Couples are able to combine income, while singles have a sole income that may affect whether they qualify for a larger loan. In this way, your financial needs are carefully considered to ensure that you do not risk serious debt.
• Additional costs – it is always a good idea to find out exactly what costs you may incur for your home loan. Some providers charge an early payment penalty for homeowners who pay off their loans before the prescribed date. Others may charge late payment penalties too. Don’t be afraid to ask about all potential costs before choosing your home financing partner.

Best Tips for First Time Buyer Home Loans

While it can be a hugely stressful step to purchase your first home, do not let the daunting process deter you from achieving your dreams of home ownership. To be prepared, make sure that you have all documentation ready so that you will be able to begin the process as soon as you have found your ideal homeloan partner. Set a budget, and do not be tempted to purchase property that is not within your budget – the most effective way to ensure that you are able to finance your home is to choose property that you can realistically afford to purchase. – affordability-calculator

Mortgage Plus Home Loans makes the process as pain-free and simple, with a wide range of loan plans that suit every budget and specific needs. This allows you to focus on the excitement of finding your dream home, along with all the plans that you have to make it your own.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za