PROPERTY NEWS - Finding your ideal home can sometimes feel about as likely as winning the Lotto, but actually there are just six numbers you need to consider in this regard to ensure your success, says Gerhard Kotzé, MD of the RealNet estate agency group.
1. The first of these is the amount that you can afford to spend - and the best way to determine this is to obtain bond pre-qualification through a respected originator. Pre-qualification is based on your earnings, credit record and current debt load, and will not only give you a really good idea of your home price range, but also more leverage with sellers because they won't have to worry about whether you will be able to obtain a home loan or not.
2. The second vital number to know, he says, is the total amount that your ideal home is going to cost to own and run every month. When budgeting for this, you will need to include insurance, maintenance, property rates, municipal service charges and any levies payable, as well as your monthly bond instalment.
3. Thirdly, you need to establish how much cash you are going to need to pay a deposit and transaction costs such as bond registration charges, legal fees and transfer duty. This can amount to quite a considerable sum, and you may need to delay your home purchase for a while so that you can boost your savings.
4. The fourth number you need to have in your head, says Kotzé, is how many years you plan to live in your new home. "The average period of ownership for first-time buyers is now upwards of 10 years, and in most cases, it really only makes sense to consider buying if you are planning to stay put for at least five years. The reason is that if you have to sell again sooner than that, you will not make a good return - and might even lose money because of high property transaction costs.
5. The fifth point is that you should know that 90% of all buyers today begin their house-hunt online - because it is the quickest and easiest way to get to know more about the areas you're considering, find out what types of homes are on offer there, and do some serious comparative shopping. You can also search for information about local schools, transport services and community organisations, and make contact with knowledgeable local agents - all without leaving your home or office.
6. And finally, he says, you should find out the number of weeks that any home you like has been on the market. The average listing time is currently down to about 14 weeks from 17 weeks last year, and if the property is taking much longer to sell it could be a sign that it is overpriced or that it needs too much repair work.
"However, you should not automatically cross off all properties that have been on the market for longer than the average time," says Kotzé.
"Some may have owners that are quite ready to negotiate a lower price if you just ask, while others may actually only need minor renovations to become your dream home for years to come."
Article: RealNet
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