For the unfortunate South African market, the market value of most homes has increased to at least 15% from last year. First timers, young homebuyers and middle range income earners now have difficulty in gaining their first property. They can, however, opt to purchase smaller properties like apartments or townhouses. When they get a foothold in the market, young investors and homebuyers can start building their equity.
Investing in a home without prior planning is a foolish decision. This is because buying a house is a big-time purchase and you have to make sure you do not regret your decision later on. Conducting a thorough survey of the property prior to buying will save you from problems in the long run. The survey should also include identifying local places, health centers, amusement sources, etc. Also a look at the proximity of emergency services such as fire services and police stations would be worth considering.
Consider the area size and the floor size before a purchase. You don’t want a home that is too big or too small for your family. How many rooms do you need? Will this be bachelor’s pad or will this be your very first family home? Some have other concerns like the number of bedrooms and the number of bathrooms. You must have a checklist of the qualities you need your home to have.
Examine financing option upon purchasing your dream house. Consider a mortgage loan, should you not buy in cash. Interpret a mortgage as a contract that obliges you to pay back the amount borrowed from your lender. Know that you are using your property as collateral, should you not be able to honor the loan agreement. Honor the mortgage agreement as the document you and the lender sign to recognize the contract.
When considering taking out a loan, you should determine whether the monthly repayments you will make are in excess of 30% of your income. If this is the case, you should strongly consider whether you could meet the repayments.
A home is where the heart lives. That is why it is essential to choose a respectable and trustworthy financial provider who specializes specifically in home loans and will answer your queries down to the tiniest details.
As a ground rule for acquiring land or a home, be clear on the type of ownership you desire. There are different types available such as Title Deeds, Sectional Titles, Freehold, and the 99-year Leasehold. It is well worth the time and effort to explore all options prior to making an investment.