Smart tips for buying your dream home
Category Property Advice
Purchasing a home is a great achievement. Buying a home you always wanted is even better. However, it is easy to get overwhelmed by certain features that you overlook and forget certain things when viewing a property. To avoid any chance of buyers remorse, it is wise to be well prepared. These smart tips will help you buy the home of your dreams:
The actual house you have been dreaming about
When searching for your dream home, make a list of the features that it needs to have. Sit together with your family and discuss the characteristics that you need to be on the lookout for. Is a big yard for the kids to play in safely a necessity? Do you want a swimming pool? How many cars must the garage be able to cover? How many bedrooms do you need to ensure that each member of the family is happy? Once you have your list in order, you can start the search for your humble abode.
The neighbourhood
Once you think you have found the perfect home it is equally important to discover if the neighbourhood best suits your needs before you take the leap and sign any documents. Google the area and its proximity to schools, restaurants, hospitals, and other important amenities. Read up on the news articles which talk about the good and bad of the neighbourhood. You can also get a crime report from the local police station. If you want a first-hand feel of the area, take a drive at different times of the day and visit the local coffee shops and parks. If the neighbourhood meets all your requirements then you are one step closer to acquiring your dream home.
Can you afford your dream home?
Finding your dream home is probably one of the most exciting things in the world. The question remains though: can you actually afford the property, the expenses that come after your purchase, and still have money left over to save for a rainy day? With the South African Reserve Bank (SARB) reducing the repo rate by 275 bps, about 42%, within the first five months of 2020, it makes buying your dream home much more realistic. The most recent cut sees the rate reach an almost 47-year low of 3.75%. To give you an idea of how effective the reductions have been, a homeowner with an existing mortgage loan of R1 million with a 20-year time period now pays around R1 747 per month less on their bond.
Buyers are liable to pay a transfer duty fee. This is a tax levied on the value of the property purchased. If the home you fancy is priced under R1-million then you will be exempted from paying for any transfer duty costs, as per the 2020 Budget Speech by Finance Minister Tito Mboweni.
If you are a first-time buyer and fall between the low to medium income earner, your home dreams can also become a reality. This is possible with the Government's introduction of FLISP (Finance Linked Individual Subsidy Programme). FLISP grants a subsidy to first-time homebuyers who earn between R3,501 and R 22,000 a month. However, regulations suggest that the homebuyer must first qualify for a home loan, and must be either married, cohabiting or single with at least one dependant.
There has never been a better time to invest in your dream home than right now. Contact Knight Frank Properties today and our friendly agents will help you make your dreams a reality.
Author: Knight Frank
