Tips for first-time homebuying success
Category Advice
Purchasing a home for the first time can be a daunting concept, so much so that many choose to delay the purchase until they feel better prepared. The truth is that many might already be in the right financial position to purchase but are choosing to rent instead out of fear of the unknown.
READ: 4 townhouses under R1.5m for first-time buyers
Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, says that it is not uncommon for first-time buyers to feel anxious about buying their first home. "Investing in real estate will probably be the biggest purchase they will have made to date, so it is understandable to feel hesitant. The problem is that property prices keep appreciating in value over time.
The longer a buyer delays getting into the market, the more expensive it will become. The sooner a buyer can get his/her foot into the door, the better. Unlike renting, buying real estate will provide individuals the opportunity to climb the property ladder over time - even if it is just a small apartment to start with," Goslett explains.
READ: 4 Charming family homes in Johannesburg under R3 million
According to RE/MAX of Southern Africa, there are several common reasons why first-time buyers delay entering the market:
- Buyers do not realise how much they could qualify for in home finance.
- Buyers are not sure of all the costs involved in making a real estate purchase.
- The process of buying seems overwhelming and complicated.
- They feel they will have to compromise too much based on what they can afford.
- There is nobody in their life that can guide and support them in this decision.
READ: Keep buying whatever you can afford, as soon as possible
The solution to many of these problems starts by making an appointment with a local real estate professional. "Unless working in the industry themselves, people seldom know the ins and outs of how to purchase property. This is why the real estate profession exists. Never feel intimidated to speak to a real estate professional and to ask for guidance. After one appointment with a reliable expert, you might feel very differently about making your first real estate purchase," Goslett advises.
There are also a host of online tools and resources to help explain the process to first-time buyers. Simply type your question into the search bar of your chosen internet browser and a plethora of property articles will appear. Many financial institutions and bond originators also have various online affordability calculators that will help buyers get an idea of all the associated costs. Play around on these calculators to calculate what you need to start working towards.
SEE | Property24 101 - Buyer and Seller specific advice
"These days, there are so many free and easily accessible resources available to help buyers. Never allow fear of the unknown stop you from making your first real estate purchase. Trust me, when you look at property prices in ten years from now, your future self will thank you for taking the bold leap to enter the property market sooner rather than later," says Goslett.
READ: Buying property: Where to look for bargain entry-level homes in Johannesburg
Local Real Estate agents Lara Hamilton Potts and Keith Harrison suggests buyers work with an agent: (read full article here)
"In addition to only using an accountable and experienced Agent/Agency when purchasing a property always consider if you were to resell what are the pros and cons about the potential property. ie. be wary of steep driveways, lots of stairs, and other aspects that may hinder a potential sale further down the road."
"If you are buying an apartment or sectional title property check the levies and special levies so there are no hidden surprises that will affect you and especially the pet policies," says Hamilton Potts.
Harrison says as this will be the largest purchase you are likely to make, ensure you work with an agent you trust and who listens to you and understands your requirements regarding price and size of property.
"Ensure that the agent will guide you through the purchasing process especially and discuss important aspects such as location, security, schools, access to amenities like hospitals and shopping malls and access to Highways and Airports amongst others," he suggests.
Understand the entire costs of purchasing a property:
"It is important that first time buyers understand the entire costs of purchasing a property particularly that there are bond costs and transfer duty costs which are over and above the actual purchase price," says Richard Anderson of Local Real Estate, Ballito.
"There are differences between purchasing land, an already built property and off plan purchases. The agent should establish the end goal for the buyer to assist with this decision.," he says.
Local Real Estate agent Jake Morgan, says: "Being pre-qualified as a buyer who can afford a certain priced property is a definite advantage. This is a free service so use a trusted originator, as it also saves time on the purchase".
"When buying a ready built home, request the house plans and make sure that they are up to date and approved with an occupational certificate as sometimes renovations have not been approved by the municipality which really complicates the process. This is a vital piece of information.
"If buying for investment purposes, such as a rental property ensure you are purchasing in a popular area and usually less is more, as there is demand for a 2 bed 2-bathroom apartment. Avoid higher priced purchases as this means the rental needs to be higher and it could be a struggle to rent out," says Morgan.
In the meantime Rory Anderson another Local Real Estate agent in Ballito says, many buyers are now leaning towards secure Estates and complexes wanting security and facilities but even within these Estates, location is critical for future growth and resale.
"The properties that see the best returns on investment are those that are not on fence lines, that enjoy lovely outlooks and are also not too far from the entrance gate(s). It is also important for purchasers to think ahead and choose properties that will appeal to a wider market such as a lovely single level property as these will also enjoy faster growth than their counterparts with stairs and no gardens".
*article updated 10 January 2024
https://www.property24.com/articles/tips-for-first-time-homebuying-success/31531
Author: Property24