PROPERTY BUYING TIPS FOR FIRST-TIME BUYERS

PROPERTY BUYING TIPS FOR FIRST-TIME BUYERS

Buying a property is a big decision and a big investment. And for that reason, it is imperative to be well-informed before making such a life-changing decision. The following basic tips will help you make an informed decision: –

1. PRE-APPROVED HOME LOAN

Before making that offer to purchase your dream home, apply for a pre-approval home loan from your bank, or use the services of bond originators. Getting a pre-approval home loan gives you a better idea of what you really can afford.

• OFFER TO PURCHASE

The common mistake most first-time buyers make is to rush into signing the offer to purchase. So, take your time and do not allow anyone, including the seller or agent, to talk you into signing an offer to purchase until you familiarize yourself with its clauses. It is crucial to understand the offer to purchase fully before signing it. The offer to purchase is a legally binding document and you could get yourself into a lot of financial trouble if you’re in breach of it.

• COSTS OTHER THAN BOND REPAYMENTS: –

Apart from your monthly bond repayments, buying a property involves other “hidden” costs, such as: –

• Transfer fees are payable to the Conveyancer responsible for the transfer of the property from the seller(s) into your name(s).
• Transfer duty payable to SARS for any property with a value or purchase price of over R1 100 000,00., provided the seller is not a VAT vendor. If the seller is a VAT vendor, the purchase price will be inclusive of VAT.
• Bond registration fees are payable to the Conveyancer responsible for the registration of the mortgage bond over the property.
• Municipal rates and taxes.
• Levies and special levies if you are buying a sectional title property.

• INSPECTION OF THE PROPERTY: –

If you are keen on buying a certain property insist on inspecting it and obtaining a property inspection report from a building inspector. The report should highlight any physical defects such as leaks, damps, or cracks in walls. Obtaining an inspection report could help you negotiate a lower purchase price considering the repairs that might be required.

• LOCATION: –

Location of the property is one of the important factors you should consider before buying a property.  Check out things like safety and security as well as proximity to schools, public transport, shopping centers, medical facilities, parks, sports and entertainment venues, etc.

Please contact us for comprehensive legal advice in respect of buying properties.