Four questions to answer before buying property
Here are four questions that prospective home buyers should ask before making the big financial commitment to purchase a property.
Each year, thousands, if not millions, of properties are purchased.
But buying property is not a decision to be taken lightly.
Potential buyers should evaluate the following:
Can you afford to purchase the property?
As a potential buyer, do your homework and check how much you qualify for.
But after finding out how much you qualify for, check if you can really afford the property.
It is not advisable to go for property that won’t allow you to live comfortably, in other words, the most expensive home in your price range.
Life can get unpredictable, and you need to look at buying a house that will still give you an allowance to budget for unexpected costs.
Do you have enough money saved up for lawyer’s fees?
When buying a property, you will need to fork out money to pay the attorneys.
You might need to pay the bond registration attorney fees, bank initiation fees, post, petties, FICA, other administrative fees, property transfer attorney fees, and transfer duty fees. This will cost you tens of thousands of Rands, depending on the price of the property you are buying.
Have you done a thorough check of the location?
Property is not only priced based on the structure, but also according to the location.
Buying property in the wrong location will not only cost you your peace of mind, but it can also affect the value of your property in the future.
You need to pay attention to the neighbourhood, amenities, appearance, and potential developments in the area. Checking service delivery in the area is also important.
Will you need to pay for levies and rates?
In some areas, you will need to pay rates and levies - and these can be costly. You can end up paying thousands of Rands for them every month.
So before you decide whether to buy the property, check if you will need to budget for rates and levies. These can also increase annually, so check how much you would need to budget.
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