Buying A House Of Your Own: Is It The Right Thing To Do?

If you have been a rent payer for most of your life, you have probably started thinking about buying a house of your own. There are very few reasons not to do so.

Apart from being an owner instead of a renter, you will be able to do with the house whatever you want to. You can paint and decorate it just the way you like it and there are property tax deductions, which you can only be eligible for if you are a first time homebuyer.

Finding the perfect home is not always easy. Don’t be rushed when searching for your dream house. Most house searches begin on the Internet and this has become a very appealing way of going about for most first time buyers. Even though you should take some time considering the where, cost, how etc, it is advisable to take a step in the right direction as soon as possible. If you don’t put an offer on a home within the first few days, chances are somebody else will be living in your dream house.

If you go house hunting, make sure you take your digital camera with. When you see a lot of houses in a short period of time, you tend to forget which one had the bigger kitchen or the extra bedroom. Take pictures of everything inside the house, as well as the outside. Take pictures of the garden and the street and make sure you get a shot of the neighbourhood.

Take a good look at each house’s design and rooms. Are the rooms spacious enough for your needs? Write down the different pros and cons of each home and remember to write down the price that the house is for on the market. Sit down and decide what you are willing – and able – to pay for a house in each category. If it is really important to you to have a house near a school or the parks, decide what you are willing to pay for that house. Most of the times, these homes are very sought-after and their prices tend to be quite a bit higher than those of houses outside the immediate area of schools.

It is best to see a maximum of 5 houses a day. You might get irritated and tired if you see too many homes a day and this might affect your judgement and choice. After a few days’ search, you will want to go back to the first houses you saw and start over again. This time you will take a closer look at the 3 or 4 houses that you considered being the most appealing.

A few days of house hunting will sharpen up your senses and you will have a better idea of exactly what it is that you want in a home and you will also realise which features you are willing to live without, and which you are willing to pay more for.

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

Home loan advice for first-time buyers

Looking to buy your first house, flat, or other type of residential property? Be sure to read on for some critical advice on buying a house and applying for your first home loan…

Do your homework properly – www.propertymax.co.za
Informed buyers get better bargains. If you familiarise yourself with the property market and get a feel for what properties cost in a certain area, you will recognise a good deal immediately, while simultaneously ensuring that you don’t end up paying too much for a property that isn’t worth it.

Be realistic about what you can afford – Affordability Calculator
A good property doesn’t come cheap, and a good property buy is more than just a house – it’s also the location that counts. Yet everything comes at a price, and you may find that you have to sacrifice on space or an extra bedroom in order to buy a property in a more sought-after area. Don’t be disheartened – the challenge is to get into the property market and buy wisely. The last few years’ rapid growth in the property market seems set to continue, which should help you to afford a bigger, more valuable property as time progresses and property growth continues. But first, you have to make inroads into the market as a buyer!

Location is everything
If you wish to buy a property with good investment potential, the neighbourhood you buy in will be a key consideration. If you are looking to buy a family home, it may also be worth your while buying a house close to schools, crèches, etc.

Also attempt to find a home that is situated relatively close to your place of work, as traffic congestion and increasing commuting times can also influence a residential property’s price.

Read – and understand! – the fine print
Buying any property comes with a fair amount of administration. As a first-time homebuyer, you’ll need to familiarise yourself with the mortgage application process, so be sure to ask questions if you don’t understand something. Also have your mortgage contract documents and application forms explained to you in detail, and keep copies of all signed documents in a safe place.

Choose a home loan that best suits your needs
Unsure of which bond solution to choose? If you’re a first-time buyer, why not talk to one of our qualified home loan consultants. Who can advice you on how to meet the home loan requirements of first-time homebuyers.

Allow for interest rate increases
When calculating your budget, it is important to bear in mind that the prime interest rate will influence your monthly home loan instalments if your bond features a variable home loan rate. Unless you opt for a fixed rate home loan solution, any adjustments to the prime rate will directly affect your home loan interest rate.

If prime is lowered, your monthly instalments will in turn be lower, and visa versa. If it increases, however, your monthly instalments will increase by substantial amounts. As such, it is advisable to allow for potential interest rate hikes when calculating your budget – even before buying a house! Be sure to use our
bond calculators to see how big a loan you could qualify for, and also to assess how much you’ll need to allow for potential interest rate increases.

By choosing Mortgage Plus for a loan, you will get that continual service to make sure you are getting the best deal possible.

CONTACT US

Speak to a home loan consultant about financing your new property or reviewing your existing mortgage. We are able to assist in lowering your bond repayments and securing attorney discounts.

Complete this short form online
Call us on 011.327.4489
Email: morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za