Economic growth is picking up, interest rates are low and home prices are still reasonable, so many people have decided this is the best time for them to get into the property market by buying their first home.

However, says Berry Everitt, chief executive of the Chas Everitt International property group, after they select an area they would like to live in and start looking at individual properties, first-time buyers often find themselves freezing up at the prospect of the huge commitment they are about to make.

What if they pick a property that turns out to need expensive repairs? What if the new neighbours turn out to be ghastly? What if something better comes up just after they’ve signed a sale agreement?

“The first thing they need to remember,” he says, “is that there is no such thing as a ‘perfect’ property. Almost everyone’s home is something of a compromise between what they dream of and what they can afford.

“But having said that, every buyer also has certain non-negotiables – needs, rather than wants. You should take the time to think about these and make a written checklist so you can easily establish which of the homes you view has the most boxes ticked for the best price.”

Writing in the Property Signposts newsletter, Everitt says this strategy will prevent buyers from becoming distracted by nice-to-have but unnecessary features, or from being unduly influenced by bargain pricing, and will help them to resist any high-pressure selling of unsuitable properties.

“And most important, it will give you peace of mind, knowing that you have picked a home that is right for you, whatever else may come on to the market later.”

By choosing us for a loan, you will get professional advice to make sure you are getting the best deal possible.

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Economic growth is picking up, interest rates are low and home prices are still reasonable, so many people have decided this is the best time for them to get into the property market by buying their first home.

However, says Berry Everitt, CEO of the Chas Everitt International property group, after they select an area they would like to live in and start looking at individual properties, first-time buyers often find themselves “freezing up” at the prospect of the huge commitment they are about to make.

What if they pick a property that turns out to need expensive repairs? What if the new neighbours turn out to be ghastly? What if something better comes up just after they’ve signed a sale agreement?

“Well, the first thing they need to remember is that there is no such thing as a ‘perfect’ property – for one thing, almost everyone’s home is something of a compromise between what they dream of and what they can afford.

“But having said that, every buyer also has certain non-negotiables – needs, rather than wants – and you should take the time to think about these and make a written checklist so that you can easily establish which of the homes you view has the most boxes ticked for the best price.”

Everitt says this strategy will prevent buyers from becoming distracted by nice-to-have but unnecessary features, or from being unduly influenced by “bargain” pricing, and will help them to resist any high-pressure selling of unsuitable properties.

“And most importantly, it will give you peace of mind, knowing that you have picked a home that is right for you and is thus your plum property, whatever else may come on to the market later.”

“Owning a home is like any other major commitment – you need to be mentally and financially ready for it,” says Adrian Goslett, CEO of RE/MAX Southern Africa.

Goslett explains that the high costs involved in buying your own home mean that you will need to be prepared to stay put for around three to five years.

“Except in a roaring real estate market, it usually doesn’t make sense to buy a home you will own for less than three to five years. The high transaction costs involved in buying and selling property means that you could end up losing money on the deal if you sell before your property has had time to rise in value and you have had time to pay off a bit of the loan and absorb some of the transaction costs.”

Of course, a key consideration that needs to be carefully evaluated before buying a home is whether you can afford to make the necessary financial commitment. “To make an accurate assessment, it is highly advisable to visit or call one of the many bond originators like Mortgage Plus or banks. They will help you assess whether you can afford to buy a home or not. It is critical that you be completely transparent about your monthly expenses, so that they can assist you in making a truly informed decision.

“Once your mortgage originator or bank has assessed your financial position, they will be able to tell you what you need to earn to qualify for the bond amount you require, or they will let you know how much you qualify for based on your income and expenses.”

Goslett notes that first-time buyers must keep in mind that in the majority of cases, they will also need to save a deposit of up to 20% of the purchase price of the house, plus enough money to cover the transfer and electricity connection costs as banks seldom, if ever, approve 100% home loans these days. In addition, Goslett advises that homeowners should ensure that should the interest rate increase, as is predicted for early in 2011, they are still able to afford the increased monthly bond repayments.

He explains that your credit rating is an essential component for bond approvals. “Many young people don’t realise the importance of keeping your financial records and credit ratings in order. If you have lots of late payments, have declared bankruptcy or left old debts unpaid, it will be much harder for you to be approved for a home loan. And even if you do get a home loan, your bad credit rating will mean you will more than likely have to pay a much higher interest rate.” – Eugene Brink

To apply for your home loan please go to www.mortgagepluscc.co.za or call us on 011.327.4489