The time has finally come where you may feel financially ready to buy property. It is the best of times, but it can quickly turn into the worst of times if you do not know when to make your move.
Understanding when is the right time to purchase property can help you avoid buying a house that will come with issues later or regretting it altogether. Here are some handy tips to know when it's time to make your move.
Common age when people purchase property
Maybe it's the age where financial stability begins to kick in or ultimately wanting something to call our own, however, the most common age for South African's to place a payment on their first house is between 34 – 37 years old. Making sure that our financial ducks are aligned goes beyond looking at the price tag that comes with a property. It means making sure that you have at least 10% - 20% of the deposit saved and doing a thorough search of the type of property we want on the property market. Speaking to an agent can make the hunt for your ideal home easier.
Strike when there aren’t many buyers
Following property market trends in an area you are interested in can give you some insight into when it will be ideal to buy a house. It is crucial to keep your long-term goals in mind when it comes to your first home, especially if you are planning on selling it later. One of the best times to start looking is when there are many sellers on the market and few buyers. This will give you wiggle room to negotiate your way to an ideal price. With not many buyers, sellers will want to find ways to get rid of their property to avoid having it sitting on the market for too long which could result in them selling it at a lower price than they had set out to sell it for.
Avoid getting stuck in an unaffordable home loan
Home loans are a common way for South African's to secure their first homes. As much as this could help you get a foot on the property ladder, it is equally important to read the terms and conditions that come with your home loan. Understanding the impact it will have on you and your finances in the future can help you avoid taking out a loan that will become harder to pay off as we age towards retirement. Having a life insurance policy in place does not only improve your chances of having your home loan application approved, but it will also make sure that your house is paid off no matter what may happen to you.
Will you be able to cover the additional fees?
Being caught off-guard when it comes to additional fees that come with a house can be a budget breaker. Before you sign anything, it is vital to calculate if you will be able to afford it. Hidden costs such as transfer duty, rates, bond registration and conveyancer fees to name a few with the later costing up to R20,000 depending on the price of the property.
