What you need to know as a first time home buyer. (Photo: Supplied)
In South Africa, the average
age for first-time home buyers is 34, according to Property24. Qualifying for a
full bond has become increasingly difficult over the last few years, with
lending institutions and banks becoming stricter to limit risk in testing
prospect of purchasing your first house can be both exciting and daunting. The
idea of investing in property and establishing a foundation for your future is
a positive move, but no process is complete without seemingly endless amounts
of administration, unexpected costs and third-party products such as home insurance.
Successfully navigating the
pathway to purchasing your first house is key to getting off to the best
possible start for your long-term investment.
10 important things you need to
know as a first-time home buyer:
institutions seldom give 100% loans – this means that first-time home buyers
usually need to save for the deposit of a home
average deposit for a home is in the region of 10% of the purchase price
are transfer and bond registration costs involved, in addition to the purchase
the cost of furniture, appliances, etc.
in the electricity deposit, and monthly rates and taxes
in maintenance and possible repairs such as plumbing, rising damp, leaking
Because owning and buying
your very first home is a huge decision, Hippo.co.za have put together a handy
guide to help you get your dream residence.
The Hippo.co.za guide to
successful first-time home investments
first point of entry into owning a property would be to approach your bank for
a home loan.
in mind registration costs and transfer fees when budgeting for your first
home. If you are fortunate enough to obtain a 100% bond, some of these costs
could be covered. You will typically be paying transfer duties to the Receiver
of Revenue if the property is more than R900,000. Some off-plan developments
may include these fees in the pricing of their units.
advertised as “needing a little work” may look like, and can be, good deals –
just ensure you have enough funds left over to make the home comfortable and
liveable should you decide it’s right for you.
is correct as of 28 February 2019
Sources: Property24; Business Live;
quoted are correct at the time of publishing this article. The information in
this article is provided for informational purposes only and should not be
construed as financial, legal, or medical advice.
This post and content is sponsored, written and provided by Hippo.