10 Handy hints for first time home buyers

2019-04-15 08:57 - ADVERTORIAL
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first time home buyers tips

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 economic times.

The 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:

  • Lending institutions seldom give 100% loans – this means that first-time home buyers usually need to save for the deposit of a home
  • The average deposit for a home is in the region of 10% of the purchase price
  • There are transfer and bond registration costs involved, in addition to the purchase price
  • Consider the cost of furniture, appliances, etc.
  • Consider household insurance
  • Factor in the electricity deposit, and monthly rates and taxes
  • Factor in maintenance and possible repairs such as plumbing, rising damp, leaking roof, etc.

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

  • Your first point of entry into owning a property would be to approach your bank for a home loan.
  • Bear 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.
  • Properties 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.

 Information is correct as of 28 February 2019 

Sources: Property24Business Live;  

Prices 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.