So, you’ve finally decided to buy your first home- but what next? Here are 3 tips that will help you along the way, and make your home-buying experience a little less bumpy:
#1. Focus on the Financial Aspect
When it comes to the financial aspect of buying a home, there are a number of factors that come into play:
- Save for your home deposit- This is the first step to take even before you enter the property market
- Check your credit profile- When you are applying for a home loan, your credit status is very important and maintaining a good profile will up the chances of your home loan being approved
- Check how much you can afford- Typically, your bond repayments should not be more than 30% of your monthly income
- Apply for a pre-qualified home loan- This confirms the bond amount you qualify for
#2. Check for Hidden Expenses
Just as you need to know how much you will be spending on buying the home, you also need to be aware that there are a number of hidden costs that can cumulatively add up to a significant amount, and you should factor in:
- Utility Fees (water and electricity fees charged by the municipality)
- Rates, taxes and levies (based on the type of property )
- Homeowners insurance (this is mandatory when you apply for a home loan)
- Monthly home loan instalments
- The manner in which the interest rate affects you
#3. Identifying the Right Property
Once all the financial nitty-gritty in place, you can begin your property search. The things you should be focusing on are:
- Neighbourhood – Check for safety, proximity to schools, the amenities available and access to public transport
- Type of home you are looking to buy – Aspects such as such as the bedroom count, and security, off street parking as well as outdoor areas will have to be taken into account
- Proximity to your Family Members – This is one aspect you may want to consider if your family lives in the same city or town
Money Matters
Once you have these basic checks in place, conduct some research on current real estate prices as well as the prices of any recent sales in the neighbourhood, before you make an offer. Since buying a home is a major decision, its best to consult a real estate agent to help you find the right listings. You can even do this online!