Few things are more exciting than the prospect of being the proud owner of a gorgeous property behind your very own white picket fence. After all, why rent and contribute towards someone else’s bond when you could own and be contributing towards your own bond instead? But, as fantastic as that might sound, we also know that few things are also more daunting.
If it’s so scary, why buy rather than just renting, anyway?
Aside from the fact that you can finally paint the walls any colour you choose and hang pictures wherever you want without fear of facing your landlord’s wrath, there are multiple benefits to being a homeowner. First off, property is likely to be an appreciating asset, especially over the long term, so when you do your research and purchase in a good area, chances are that you’ll be making a real investment. In addition to this, if the value of the property rises, so will the value of your personal wealth, and your ability to make a profit when you sell one day.
Despite the obvious benefits, however, we get it – deciding to invest in property is a huge step, so of course, it’s not one that should be taken lightly. And, while we wish that concepts like how to calculate a bond were covered in our High School Life Orientation lessons, most of us are at a loss at where to even get started with buying, whether its to live or invest. So, as the property development professionals, we’ve put together our top tips for first-time property buyers.
- Calculate, Calculate, Calculate
You don’t have to be a numbers guy to know that if you’re thinking of buying property, you need to be able to afford it in the first place. But, luckily, you also don’t need to be a numbers guy to be able to do those calculations with our handy Bond Calculator. Having a look at your budget and your disposable income, and be realistic about what you can comfortably afford on a bond every month; keeping in mind that you should be setting aside a little bit every month for emergency costs. Now that you’re owning rather than renting, you’ll be in charge of things like maintenance so it’s important to have an emergency fund. Levies, rates, and taxes are payable from date of registration, so make sure you factor these costs in when calculating.
- And then shop around!
Not all bonds are created equal, so don’t just snap up the first offer that comes your way. By applying for a bond from more than one bank, you get a better idea of what is available to you and can make a more informed decision about what the best offer is. Bond originators can also help, and their services usually come at no extra cost!
- Stay Informed
Interest rates can fluctuate, so knowing what the difference in your bond repayments would be should the interest rate change is a really good idea. There should always be some room in your budget should the interest rates go up, especially when you buy when the interest rates are low. So, stay informed of what the interest rates are doing, and you won’t be caught off guard.
- Do your research about the area
Location, location, location… It may be a cliché, but clichés exist for a reason! Buying in a safe, established and desirable area is a great way to have more of a guarantee on your investment growing. No matter if you’re buying to live or to rent, consider things like proximity to good schools and facilities, safety, and the value of neighbouring properties. Luckily, each and every one of our gorgeous Reeflords Properties has been built with these in mind, so when you buy with Reeflords, you know location is already sorted.
- Try and have a little fun!
Yes, it can be a little overwhelming, but buying your first home should also be exciting – so try and enjoy it a little! Take your time shopping around, do your research, and make the most of this exciting period while you await the wonderful feeling of holding those keys as a homeowner for the first time.
Looking to purchase your first home? Check out some of our incredible opportunities for growth and investment here: www.reeflords.co.za