First-Time Home Buyer Dos and Don'ts
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Becoming a first-time homebuyer is a monumental milestone, but it can also be a daunting journey filled with uncertainties. To help you navigate this exciting yet challenging process, we've compiled a comprehensive list of dos and don'ts to ensure a smoother transition into homeownership.
The Dos:
Establish a realistic budget:
Before purchasing your first home, sit down and carefully assess your finances. Calculate your monthly income, expenses, and savings to determine a realistic budget for your new home. Click here to check what you can afford.
Get pre-approved:
One of the best ways to strengthen your bargaining power is to have a pre-approved home loan. You can apply for this with your bank or other service providers. Having pre-approval gives you a better understanding of what you can afford, helping you streamline your search. Click here to start the pre-approval process.
Research suburbs thoroughly:
Location is key when buying a house, so take the time to research different suburbs, areas or estates extensively. Consider factors such as proximity to schools (check school catchment areas), amenities, public transportation, and safety ratings. Visit potential neighbourhoods at different times of the day to get a feel for the community, lifestyle and traffic patterns.
Hire a trusted real estate agent:
Partnering with a knowledgeable and experienced real estate agent in the area can make all the difference in your home-buying experience - after all, having a local who understands the area is 'lekker'. A reputable agent will not only help you navigate the complex housing market but also negotiate on your behalf, ensuring you get the best possible deal. Ask your agent for the latest reports on the area. A good agent will have access to the latest sales information via companies like Loom and Lightstone. Click here to contact one of our expert agents to get a report.
Consider the full cost of homeownership:
Beyond the purchase price, it's essential to factor in all expenses associated with homeownership. This includes hidden costs such as bond cancellation and registration, property transfer duty, levies, special levies, utilities deposits, and ongoing expenses such as electricity, water, gas, homeowners' insurance, garden services, rates and taxes, security, Wi-Fi, and other connection costs. Click here to get detailed information on what your transfer costs could be.
The Don'ts:
Overextend your budget:
While it may be tempting to stretch your budget to purchase your dream home, it's important to resist the urge to overextend yourself financially. Remember that unexpected expenses can arise, and you'll want to maintain a comfortable buffer for emergencies and unforeseen circumstances. Consider the current interest rate environment and what the trends are for example, many people bought homes when the interest rates where low and now find themselves in a stretched position.
Skip the fine print:
When reviewing contracts and agreements related to your first house purchase, never skip over the fine print. Take the time to read and understand all documents thoroughly, including the terms of your bond, HOA regulations, and seller disclosures. If anything seems unclear, seek clarification from your real estate agent or your conveyancing attorney.
Rush into decisions:
Buying a house is a significant investment, so don't rush into decisions hastily. Take the time to explore different options, weigh the pros and cons, and carefully consider your priorities and long-term goals. It's better to be patient and find the right home than to settle for something that doesn't truly meet your needs.
Neglect additional costs:
In addition to the purchase price of the home, don't forget to budget for additional costs such as moving expenses and home maintenance. These expenses can add up quickly and may catch you off guard if you're not prepared. Be sure to factor them into your overall budget from the outset.
Following these dos and don'ts will allow you to navigate the complexities of the real estate market with confidence, helping you make informed decisions that pave the way for a successful homeownership journey. Remember, patience, diligence, and careful planning are the keys to finding your perfect home sweet home.
Author: Chas Everitt