A Buyers Guide to Purchasing Your First Home
Property prices have dropped by 12%, with the cost of renting versus buying swinging very much in favour of buying.
After an economically tumultuous 2019, followed by a pandemic-plagued 2020, property prices have dropped, and the South African Reserve Bank (SARB) has brought down prime rates to 7.25%—the lowest level since 1973.
It’s a buyers’ market
South Africa is in a buyer’s market, creating opportunities for first-time homebuyers to snap up their dream home. First-time home buyers will have less difficulty qualifying for a home loan, especially for properties below R1m where no transfer duty is required. If you’re a first-time buyer looking to purchase a property while market conditions are in your favour but are in the dark with what to expect, look at our first-time homebuyers guide to buying—not just your first home, but your dream home.
Assess your affordability
Buying a home is more than an investment. It’s a commitment. Your income must be stable and sufficient to support the first-time bond. Your monthly bond repayment should not exceed 30% of your gross monthly income, so before you begin your property search, use an affordability calculator and get pre-qualified for a home loan. Using online tools to estimate costs, including transfer costs and monthly repayments, will confirm the qualified bond amount.
Ensure your credit history is healthy—and pay a deposit!
It is always a good idea to clear as much debt as possible, such as your credit cards and retail accounts. If you want to better your chances of bond approval, ensure your credit report is healthy and pay a deposit, as this will lower your bond payments.
Begin your house hunting adventure
A property specialist is a link between the seller and you, the buyer. They bring experience, expertise and negotiating skills to the table. A property specialist protects your interests—from giving you the first pick of listings to dealing with timely and stressful legal and financial issues. They play an essential role in guaranteeing the security of your investment.
You’ve found your dream home. What’s next?
When you’ve found the perfect home, you will be ready to make an offer to purchase and apply for a bond. That is when you compare multiple banks to get the best home loan offer, and once approved and signed, the bank will formally grant the loan and direct the bond attorney to register the bond.
However, this is a legal process that includes procedures, fees, duties, formalities and legalities. As a result, a Transfer Attorney, Bond Attorney and Cancellation Attorney will enter the relationship. The bank selects a bond attorney to draw up documents for you to sign, and you will appoint a conveyancing/transfer attorney to transfer the property to your name.
The registration and transfer process can easily take up to three months to conclude. However, once completed, your dedicated attorney will send the paperwork to the Deeds Registry Office for the verification process. The bank will then pay out the loan, and you will be the owner of your first property. Exciting and easy, right!
Buying your first property is one of the most significant financial investments you’ll ever make. And if you’ve had your eye on a property for sale, there is no better opportunity than right now to snap it up, and Tyson Properties can help you through every step of this exciting venture.
Ensuring that our clients are always 100% satisfied with their investment—we deliver the best results and returns possible.