Top Tips for First-Time Buyers
Category Property Advice
You're ready to buy your first home! This is an exciting experience but buying a house is a big decision and one that cannot be taken lightly. While this may sound like an obvious statement, first-time buyers will often make mistakes that could be avoided if they had taken a more thoughtful, balanced approach.
We look at some of the most common mistakes first-time buyers make when purchasing a property.
You don't know what you want / need
Buying a property cannot be based on a pre-conceived idea of the perfect home. As a buyer you need to go in with a balance approach. Consider all the things you would like and, perhaps more importantly, need in a home.
Ask yourself the right questions before you start looking and balance out your needs in order of importance.
Do you need to be close to work, school or both? Does this mean a specific area or is public transport or a good road network a possible solution? Do you need a big garden or a larger living area? What, if any, of these would be a deal-breaker?
Draw up a checklist before you start looking so that you can begin your search with your eyes wide open. It will save you time in the long run.
You don't know what you can / can't afford
Know your costs before you buy.
Ensure your budget is clear, concise, and realistic. Make sure you've accounted for all set expenses as well as the unexpected (medical, mechanical, and other emergencies) to ensure you know what you can comfortably cover.
Future-proof yourself, by leaving some wiggle room. You don't want your first house painting you into a financial corner. Cut your coat according to your cloth. And just because you qualify for an amount, doesn't mean you should jump into it without careful consideration of a potential change in circumstances.
You don't research the neighbourhood
Do your research! Look at trends in the area, and consider the property values - are they getting better or worse? What makes it special and are there any historic issues or future developments worth considering? Speak to unbiased locals and previous residents to get an idea of what the area is really like. Find a neighbourhood that offers your desired lifestyle. Important things to consider are security and proximity to work, schools, healthcare and shops.
You let emotions get in the way
You've found your dream house and will do whatever it takes to make it a reality! Don't let your emotions cloud your judgement. Therefore, your planning is hugely important. Remember the work you did before getting to this point? Does this home serve your current needs? Is it close to work/school? Is it in your budget? Your first home is unlikely to be your last. Your dream home may just be in your future, don't bet everything on your first buy or you just may regret it. .
You don't anticipate the hidden costs
Once your bond has been approved, that's not the end of the process or the costs you will incur.
The bank will next appoint a bond attorney to draw up the necessary documents, while the seller will appoint a conveyancing attorney to take care of the transfer of the property into your name.
The former will charge fees for the registration of the bond, while the conveyancer will charge you for the transfer of the property.
The fees will be dependent on the cost of the property.
If the property is valued at more than R1 000 000, you will also need to pay a transfer duty to SARS.
You can use The Agency Property Group's Transfer Cost Calculator to determine what the bond registration and transfer fees will likely be.
Your new home will also need upkeep and perhaps some renovations. A bigger home means more costs on the horizon, while an older home could be a fixer-upper that never quite gets fixed.
You over/underestimate the size of the property
Remember those hidden costs? You need to plan for how your future may look when buying a home. Is it big enough? Are you planning on adding to the family? Does this new home cater to children in your future? Are you considering a home office for your start-up, which may need an expansion as the business grows? Does your home look as roomy in your future as it does now? It's important to consider the longevity of your purchase. Will it still work for future you or are you going to outgrow it within a couple of years? If it's the latter, you might want to consider holding off for a bigger property.
Need more help on where to look and what to consider? Reach out to one of our Trusted Property Advisors and let them guide you.
Author: The Agency Property Group
