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Buyers Guide

 

 Buying a house

Buying a home is usually one of the more exciting and rewarding experiences most people ever have; probably challenging and even daunting, emotional and overwhelming, as it is often the biggest financial investment they will make.

Herewith a few guidelines and questions a buyer should answer before making the commitment. Decide on the area you'd like to live in (close to schools, work amenities etc.) Decide on the type of property you would like to own an individual dwelling (house / cluster) a unit in a high density (complex / flat / townhouse /apartment) The reasons you would like to own a property rather to rent Decide on how much you would be comfortable with spending on a property Normally financial institutions allow one to spent between between 25 to 30 % of joint monthly incomes on a mortgage bond repayment. It is recommended to be pre-approved by a financial institution.

Contact a reputable estate agent to:

  • Assist you with the process
  • Show you properties
  • Answer any queries

Check the properties thoroughly:

  • the suburb
  • the amenities
  • future developments
  • financial aspects size, space and style
  • physical condition

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 Investment Budget

Investment Cost

Purchase price R
Transfer duty & cost R
Petties & miscellaneous R
Bond registration costs R
Allowance for miscellaneous costs R
Sub total R
Loan applied for(bond) R
Cash required = (Deposits + sub total of cost) (i)+(ii) = R

Monthly Commitments

Amount of bond (amount of years@xx%) R
Bond Installment R
Rates/Levy R
Water & Lights R
Total R

Bond repayment : NB minimum income must be three to four times the amount of the bond installment

Bond factor for 20 years at 14.5% =............ (bond amount / 1000) x 12.8 = monthly repayment

NB : Further provision to be made for :

  • Household & bond insurance
  • Furniture removal expenses
  • Water, lights connection

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 Checklist for house hunters

THE SUBURB Very Suitable Average Unsuitable
Distance from work, Access in and out, Public transport routes, Streets lighting pavements, Future development plans, Amenities - shops, Medical, Schools, Religious facilities, Recreational facilities, Community Type of peopl, Zonings, Density - high/low, Commercial developments, Security, Bottom end and ceiling price, Average price
X
X
X
THE PROPERTY Very Suitable Average Unsuitable
In your price range; Size and space, Layout, Living areas, Potential for upgrade/alterations
X
X
X
PHYSICAL Very Suitable Average Unsuitable
Improvements/plans, Electrical systems, Plumbing, Roof, Walls, Floors, General condition, Position on stand, Quite/noisy, Garden, Security, Views, Value for money, Resale value
X
X
X

Please remember that if the property you are purchasing is not newly built, it is a "second hand" home and normally there is a bit of "wear and tear". During the excitement and emotion of the first visit one tends to be "blinded" to small faults. Please check the property as closely as possible.