<\/p>\n\n\n\n
If 2020 taught us anything it\u2019s that life can be unpredictable and while no one can say for certain how much things will change in the coming year, we can give you some sensible, tried and tested good advice if you\u2019re thinking about purchasing a property for the first time in 2021.<\/p>\n\n\n\n
1) Take a careful (and honest) look at your finances<\/strong><\/p>\n\n\n\n You probably don\u2019t need us to tell you that buying a house is a major financial decision. Before committing to 20 to 30 years of instalments, it\u2019s vital to take a totally honest look at your current circumstances, including your short-term debt, savings and investments, as well as your financial goals for the foreseeable future.<\/p>\n\n\n\n Tip:<\/em> Give yourself a realistic goal of saving for the biggest deposit possible while you start the house hunting process, or paying off as much of your short-term debt before you make an offer on a property.<\/p>\n\n\n\n 2) Consider your career options and overall job security<\/strong><\/p>\n\n\n\n Before you sign the dotted line, it\u2019s also a good idea to take a realistic view of your current income, your earning potential, together with your future career options. This helps establish a long-term view of your ability to meet your financial commitments.<\/p>\n\n\n\n 3) Give some thought to your home office<\/strong><\/p>\n\n\n\n This is certainly a new but very important factor for many more prospective buyers than last year. If your home has become your frequent place of work and visits to the office are few and far between, you\u2019ll need to have a quiet space to work, and this means that you may be looking for something a little different in 2021.<\/p>\n\n\n\n Tip:<\/em> Find out if there is reliable fibre in the neighbourhoods you\u2019re looking in, if you\u2019re working from home, you\u2019ll need a decent internet connection.<\/p>\n\n\n\n 4) Expand your horizons<\/strong><\/p>\n\n\n\n If long commutes to the office are a thing of the past, you can expand the \u2018zone\u2019 in which you originally considered living. You might find that suburbs outside of this zone offer better value for money, larger properties, and even better security.<\/p>\n\n\n\n Tip:<\/em> Have you heard about how many South Africans are semigrating away from the big cities because their work \/ family situation allows them to be remote? Consider this if it\u2019s a possibility and broaden your search area for a new house.<\/p>\n\n\n\n 5) Get clued up on interest rates<\/strong><\/p>\n\n\n\n Interest rates are the lowest they\u2019ve been for years but that doesn\u2019t mean they\u2019ll stay put forever. Ensure you do your affordability calculations anticipating a rate increase as early as the second half of 2021.<\/p>\n\n\n\n 6) Pay more than your minimum amount<\/strong><\/p>\n\n\n\n Remember that for the first few months of paying off any bond, you\u2019re really paying the interest and not the capital, so if it\u2019s possible to increase your monthly bond payment now above the minimum required amount, you\u2019ll pay your bond off faster in the long run.<\/p>\n\n\n\n Tip:<\/em> If interest rates drop further, keep your monthly installment the same and pay your debt off faster. And pay off your most expensive debt off first (this is often your credit card or a personal loan).<\/p>\n\n\n\n 7) Check your credit score<\/strong><\/p>\n\n\n\n Before you start searching for your dream home, take a look at your credit score. Not only will this give you a clear picture of credit history it also helps you understand what prospective lenders may see. Your credit score and behaviour are very important factors the banks consider when evaluating credit applications. Checking your credit report regularly means you\u2019ll be able to detect inaccurate or incomplete information and resolve any issues quickly.<\/p>\n\n\n\n 8) Remember the extra costs<\/strong><\/p>\n\n\n\n Remember to factor in transfer duties, conveyancing fees, bond cancellation and registration fees into your budget. These extra costs add up fast!<\/p>\n\n\n\n Tip:<\/em> You may need a few extra months to save for these on top of your deposit, just be prepared for these costs as many of them are non-negotiable and delaying paying these would delay the transfer of a property to you as the new owner.<\/p>\n\n\n\n 9) Separate what you want from what you need<\/strong><\/p>\n\n\n\n Make a list of all the things you\u2019re looking for in a home. Are there certain comforts you can live without? What are the non-negotiables? Include your pets and future family plans when thinking through your options. This is the most important list you\u2019re going to make in your house hunting journey.<\/p>\n\n\n\n 10) Don\u2019t forget the bigger picture<\/strong><\/p>\n\n\n\n Consider macro-economic factors such as house prices in your preferred area, interest rates, and the \u2018nature of a buyers \u2019 market\u2019 and let these be influencing factors if you\u2019re certain that a home won\u2019t be a financial burden. Paying off your own bond as opposed to someone else\u2019s is always good motivation if you have thought this huge and long term financial decision through properly.<\/p>\n","protected":false},"excerpt":{"rendered":" If 2020 taught us anything it\u2019s that life can be unpredictable and while no one can say for certain how much things will change in the coming year, we can give you some sensible, tried and tested good advice if you\u2019re thinking about purchasing a property for the first time in 2021. 1) Take a […]<\/p>\n","protected":false},"author":1,"featured_media":3040,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3039","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/posts\/3039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/comments?post=3039"}],"version-history":[{"count":0,"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/posts\/3039\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/media\/3040"}],"wp:attachment":[{"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/media?parent=3039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/categories?post=3039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techandbiz.com.ng\/tab-backup\/wp-json\/wp\/v2\/tags?post=3039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}