Buying a home is probably the largest investment decision most consumers will ever make, yet they often take less time when doing so than they would when, say, buying a new car. That is because buying immovable property is unfamiliar territory to most people who, as a result, really do not know what questions to ask. Working with an qualified Estate Agent can be exceptionally helpful, allowing you to make informed decisions.
Time frames
Here are a few questions you will need to ask:
• When do you want to move by?
• What date do you need to transfer the house into your name?
• Do you have to sell your current home first?
• Will you need to apply for a home loan?
• Do you have a guarantee?
Please note: If you require a home loan, you can use the calculation we have set out for you. You will then be able to see what the maximum bond is that you qualify for, based on your combined monthly gross income. Also check what are the legal costs involved in buying a property, as well as the agent costs.
House-hunting
Once you have decided how much you can afford to buy for, you need to determine what you are looking for in a home. You will need to check the following:
• Number of bedrooms
• Number and / or type of lounge
• Do you require a study and an entertainment room?
• Size and style of kitchen
• The character and style of home
• Double or single garage
• Do you need accommodation for domestic staff?
• Do you want a laundry or a workshop?
• How old is the property, and what is its general condition?
• Pool and tennis court requirement
• Garden size and upkeep, style and fencing and gates available
• What area is the house situated in?
• Are there schools in the area?
• Look at what you liked about your present home that you would want in your new home, and also look at your dislikes and make sure these are not in your new home.
Financial qualifications
You will also need to check on the following before you make a decision on buying:
• How much cash do you have available to put down as a deposit?
• How much can you afford to pay off monthly on your bond – ideally your home loan to income ratio should be about 30 % or less.
• It is a good idea to obtain pre-approval by your bank or other financial institutions before you buy. Investigate the services and costs involved and ensure that they suit your requirements.
• Ensure you have sufficient funds set aside to cover other costs, such as attorney fees, over and above the deposit. Unless you are a first time home owner, will financial institutions approve a 104 % bond to cover these fees
• Check when these finances will be available, and make sure this coincides with when you want to move to the new property.
Costs involved
• Bond registration costs – stamp duty, HOC insurance, inspection fees, interim interest
• Conveyancing fees – Transfer duty – pro rata rates and taxes, deeds office admin fees
• Moving costs
• Deposits on electricity and water, and telephone
• Registration fees for schools if moving to a different area
Document requirements
You will require the following documentation when applying for a home loan, provided by your Estate Agent, Financial Institution, Attorney and Seller.
• The sale agreement and terms of sale
• Any special clauses and/or conditions agreed upon should be inserted in the agreement
• Guarantees and dates which must coincide with other property sales
• The occupation date for both buyer and seller (if the seller is buying a new property)
• The finances with regards deposits, attorney costs and home loan amount
• The rights and obligations set out by the buyer and seller
Estate Agent
Should you be using an estate agent, it would be wise to check on the following:
• Does the Estate Agent know the area and properties for sale?
• Is the Agent qualified and have they passed the Estate Agents Affairs Board (EAAB) examination. Are they registered with the Board?
• How many years has the Agent been in business?
• What record does the Agent have with regards mandates, sales and referrals?
• Does the Agent have a good reputation in the community?