Phone/WhatsApp

Melissa Kent 076 242 3641

Chas Everitt Randburg

126 Kayburne Ave, Randpark Ridge, Randburg, 2169

Guideline for Buying a House for First-time Buyers

Are you entering the property buyer’s market?

If you are a first-time home buyer and you have no idea where to begin, what to do, or who to talk to. It is a good thing that you are on this page and read our guidelines for buying a home.

It can be a daunting process for first-time buyers when you do not have an agent communicating with you. However, the whole process is simple and with a good agent it can be a pleasant experience.

Buying a Home is a Big Financial Commitment

There are a few aspects to take into consideration before you go and buy a property.

What are these considerations?

  • Before signing an Offer to Purchase, you should do a credit check or a pre-qualification through a bond originator.
  • Know your credit status before applying. If you know what your credit status is, you can work on it to increase your credit score.
  • A good tip for any buyer is to try and save for a deposit. When you do have a deposit it will increase your chances of getting a bond. It will also lower your monthly installment which can be helpful.

When you do a pre-qualification, you know more or less what the banks or financial institutions will provide you with.
When you have this information, you can work on increasing your score and credit limit. You can read more tips on how to increase your credit score here.

Then after a few months contact your bond originator again and ask them to do another pre-qualification for you. If you get your finances in order and wait a little while, your credit score will increase. The banks and financial institutions will qualify you for more.

Are you looking to purchase a freehold or a sectional title?

What is a freehold?

A freehold is known as a free-standing house where you do not have to pay levies.

What is a sectional title?

Sectional title is all properties where you will have to pay levies to the body corporate to maintain the complex. It usually includes townhouses, clusters, apartments, retirement villages with sectional title options, and more.

It all depends on your desires and needs when you are buying a property.

Are you looking for a lock-up-and-go property? Are you looking for a big garden? Do you want to stay in a boomed-off area? What can I afford?

These are just a few questions you need to ask yourself before you buy the first house that comes your way.

Utility fees & Rates, Taxes, and Levies – another aspect to keep in mind

It is the bill you receive from your local municipality monthly to pay for your water, lights, sewerage, and other.

Always ask the agent when they take you out to go and view a property, what is the rates and taxes on the property. In a sectional title case, you would ask for levy fees as well.

If you know what it is, you can prepare your finances accordingly. Read more about rates, taxes, and levies here.

Interest rates play a big role in the purchase of a property

It is a lending fee that you pay for borrowing money from a bank or financial institution to buy a house.

You can read more about interest rates here.

For first-time buyers, remember this piece of advice. The shorter your home loan term is, the less interest you pay.

Conclusion

There are loads of information available in buying a property, however, choose an agent you would like to work with. Ask the agent all the questions you are uncertain about.

That is what property practitioners are for, to assist the public with advice, guidance, and buying and selling of a property.

Next article – Preparing Your House for the Real Estate Market

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