Tips for buying your first home
Category Property Advice
Buying your first home is an exciting time in your life. Aside from having a home to call your own, you also have the ability to decorate it however you please. With that in mind, you do not want the actual process of purchasing a property to dampen your spirits.
Here are a few tips to help you understand the process of buying a home in South Africa:
Learn about the types of ownership
As you must have noticed, there are different types of properties available on the market. Houses in a suburb, apartment complexes, as well townhouses, to name a few, can be characterized by these four types of home ownership:
- Freehold - In a freehold or full title property, you have the freedom to modify, extend, alter or change both the interior and exterior of your home. Owners of freehold properties are required to pay rates to the municipality based on the value of the land and buildings.
- Sectional Title - Sectional title dwellings comprise of subtype houses, semidetached houses, townhouses, flats or apartments, and duet houses. This type of ownership allows you to own the inside of the building, while the exterior and the land it's on belongs to a Body Corporate, which is made up of the unit owners.
- 99 Year Leasehold - You will never own the property outright in this type of ownership. Instead, you lease the land from the owner for a period of 99 years.
- Share Block - This form of ownership applies to a small number of blocks of flats/townhouses. Once you purchase a flat you become a shareholder and you are entitled to occupy a particular unit.
Analyze your requirements
Before you start searching for a home you need to know what you are looking for. Make a personal checklist and consider the needs of each member of the household.
Questions to consider:
- What type of dwelling do you want to live in?
- How many bedrooms and bathrooms are required?
- How many parking bays are needed?
- Do you need easy access to public transport?
- Do you have or plan to have pets that require a big yard?
- Do you plan on entertaining guests occasionally?
- Does the property need to be close to work, schools or other amenities?
- What are your safety requirements?
Determine your budget
Once you have laid out what you want out of your property you need to establish what you can afford to purchase. Expect your expenses to be more than just paying for your monthly bond. Other expenses will include rates or levies, home insurance, utility bills, as well as your monthly living expenses.
Remember, the advertised price of a home should be considered as a base amount. As a buyer, you should expect to pay an extra 8% to 10% of the purchase price for the property, excluding the deposit. These additional expenses include; transfer duty costs for a property over R 1 000 000, registration costs, FICA fees, posts and petties, electronic instruction fees, and more. Your estate agent can assist you with working out these extra costs or you can determine them yourself using a bond calculator.
Since you now know exactly what you want from a home and have a budget in place you can start looking for your first home. If you need more information on buying your first home, contact Knight Frank Properties today for expert advice.
Author: Knight Frank
