Location will have an impact on the return on investment and the appreciation in the property?s value but it also depends where homeowners want to spend their days.
For this reason, Adrian Goslett CEO of REMAX of Southern Africa notes that systematically working through the process, asking the right questions and seeking professional advice can help home buyers navigate the process and alleviate some of the emotional stress.
Goslett says that at the start of the property purchasing process, buyers should answer four key questions before they continue looking for the perfect home. He says the answer to each question will form a vital part of making an informed and educated decision.
The four key questions, according to Goslett, are:
Location will have an impact on the return on investment and the appreciation in the property?s value. However, this question is also about where the buyer wants to spend their days. Buyers can get information about an area from online property sites, which is also a good resource for finding out about the general property pricing, along with the range of amenities on offer.
?Property search portals will help buyers to narrow down a location and type of home," Goslett says. Depending on the buyer?s future plans or current situation, certain elements will be more important than others such as schools, the commute to work, entertainment amenities available or proximity to medical facilities. He says that eliminating certain neighbourhoods because they don't meet requirements will help streamline the process and reduce frustration. Once the search has been narrowed down, he advises that the buyer take a drive out to the areas they have chosen to get a feel for the neighbourhood and the people that live there.
In today?s market it is no secret that on average 60 percent of buyers will require a deposit when applying for finance in order to secure the bond with a lender. Knowing how much of a deposit will be needed depends on the target purchase price that a buyer has set for themselves and what they can afford. On average, the current required deposit for repeat buyers is around 20 percent, while first-time buyers are generally asked for about 12 percent of the purchase price.Goslett warns that there are additional costs associated with a property purchase that buyers must be aware of and need to set aside money for, such as transfer costs, moving costs, home repairs, renovations and planned upgrades among others. 3. What do you want to spend monthly?
A reputable estate agent can provide much needed guidance through the home buying experience, but the buyer needs to feel comfortable with the agent. Often home buyers find themselves in financial distress because they didn't take the additional monthly expenses of owning a home into account. Goslett says that buyers need to keep in mind that qualifying for a bond doesn?t necessarily mean that the buyer can afford the home. He notes that a reputable mortgage originator will be able to provide the buyer with the total cost of the bond, which would include the repayment, interest and homeowner?s insurance. However there are other expenses to be considered. Some of these expenses include electricity and water, rates and taxes, levies (if in sectional title unit), Homeowners' Association fee, home maintenance and landscaping.
Once all other questions have been answered and it is time to go out and look at properties, choosing a real estate agent will probably be one of the buyer?s first decisions. ?It makes sense to work with an agent who specialises in the particular area that the buyer is interested in,? Goslett says. The agent will have a working knowledge of the area and prices as well as a network of sellers they are working with. He says it's important that the buyer chooses an agent that has the qualities they are looking for, such as honesty, integrity and experience. Most importantly the buyer needs to feel comfortable with the agent.
A reputable estate agent can provide much needed guidance through the home buying experience, provided there is an open line of communication between the buyer and their agent. Goslett says buyers who have a good relationship with their agent and trust the agent?s expertise and knowledge usually have a much smoother property buying process.