buyers
Some questions to ask yourself before buying property
There is a saying that goes, “when is the best time to buy property…twenty years ago and when is the next best time to buy property…now!”
There is some truth and relevant lessons in this proverb and that is the sooner you buy property the better and that over time the value of property will grow.
Buying property will probably be the single biggest investment you will ever make in your lifetime and certainly one of the most emotional.
Our website is here to help you to make your biggest investment of your life with a solid foundation of knowledge and to reduce some of the emotion out of the purchase and make it one that is practical and sound.
There are several factors that could help you when buying a property. Here are the 5 rules or guidelines you could follow when buying a property:-
Make a Wish List
Everyone is allowed to dream and so can you when it comes to buying a house. Your wish list could include :-- the type of property you wish to buy, such as a single dwelling, flat or farm house or within a cluster of homes.
- the number of bedrooms you will need and possible sizes (now and in future). This may be determined by the anticipated growth in your family and probably how long you plan to live there.
- the number of bathrooms, showers or whether the master bedroom or other bedrooms are self contained.
- should the kitchen have ample cupboard space and counter tops, with separate breakfast area.
- should the dining room be separate or part of the living room.
- would you need a separate or open entertainment area and how big.
- do your requirements include a study/office or a children’s play room.
- is a secured lock up garage a necessity or is an open parking area all what you need.
- what quality of interior finishes are you looking for such as wall to wall carpets, parquet flooring, or tiles and are the ceilings to be decorated and the rooms air conditioned.
- would you need a well appointed garden with a swimming pool and an entertainment area.
Know thy self
Knowing your means from the onset will help avoid a lot of heartache, stress and anxiety in future. Most mortgage finance providers will probably not finance 100% of the purchase price of the property. Therefore, the shortfall which could be as high as 20% to 30% has to be put up by yourself. This is called an equity contribution or down payment.
This contribution or down payment should be planned and saved for through a financial goal plan. This essentially reduces the overall mortgage debt of the entire property purchase price and shares the risk between the bank and yourself. Knowing your financial capacity would help in your gauging the level of borrowing and your ability to repay the mortgage debt. Please see our affordability calculator on the home page
Is is the right time to buy?
This is an important question and consideration that you have to answer and make in your purchase process. Is your individual and household financial budget in order, to take on another large long term financial commitment? In the economy are interest rates trending upwards thus your cost of borrowing will be increasing? Is the property market signaling a buyers market (where there are more sellers than buyers and that bargains are available)? This buyers environment would be the ideal time to buy your property but of course opportunities are abound in any market, all it takes is a keen sense for finding those opportunities.<
Research
The more research you do the more you improve your odds in finding the type of house you are looking for. This research includes driving around various neighbourhoods (notice which neighbourhoods are growing and thriving and attracting new activity and which neighbourhoods are declining). Engaging a reputable real estate agent, asking friends, families for referrals, daily checking the newspapers classified ads and real estate websites.
Shopping for a loan
While all mortgage finance banks exist to provide us mortgage loans, there could be slight differences in the terms and conditions of the loans, such as equity, or down payment required by the bank. The period of the loan, the fees charged and the interest rates, are factors that can make differences in savings. So, pay particular attention to such details. We have also provided a home loan calculator which would assist you to have an indication of how much the mortgage loan will cost per month.
In summary, as a buyer of property you want to answer these questions. Does the property I want to buy reflect my current and future lifestyle? Is the location near my family, friends, work place and is it easily accessible by transport? Will this property serve the purpose of the current and future size of my family (number of rooms, size of living areas)? Is it in a safe and secure neighborhood? What is the most I can comfortably afford?
We wish you good luck and happy house finding !