Tips for buying your first property in Cape Town this holiday season
Category General News
The festive season is traditionally a long one, with many businesses going on a break for a few weeks. This means employees are on leave, away from the stress of the corporate world, with some time to start looking into the housing market.
One of the most talked about topics during the December holidays is new year resolutions and the fact that people usually don’t follow through with them. But this is also a time to make important investment decisions that could have a long term impact on you and your family. One of these would be decision making around purchasing property.
Buying a home is a big step and should never be rushed. Importantly, anyone interested in buying a home should not only get a clear idea of the average price of property in their area of choice, but they should also double check the quality of the neighbourhood. Researching property takes time and the holiday season is ideal for taking a serious look at what’s available and making enquiries as to how much the bank is willing to lend you.
To help you prepare for the purchase we have provided you with seven steps to follow before putting in an offer.
As a potential buyer, the first thing you should consider is your credit score. A good credit record gives you a better chance of getting the bank to approve your loan application. To get your score is a quick and simple exercise and, given that South Africans are entitled to one free report annually, shouldn’t cost a penny.
Get your debt under control
Keep track of your debt levels and reduce it where you can. Taking on more credit during this time is not a good idea and you would want to steer clear of any additional credit cards. Looking for a new job now will also do you no justice, as banks like stability and could reject your application if they feel you lack the required job security.
Build up your deposit
The festive season a time of spending, but saving your money will benefit you. Save as much as you can to contribute towards your deposit. A deposit is not a form of punishment. The more you put into the bond, the less you will be paying back. Be smart, don’t buy the most expensive property you can find, even if the bank is willing to lend you the money.
Christmas is a time of giving but instead of the usual presents from family, perhaps request a monetary gift instead. Consider the various fees besides simply securing a bond. The fees include transfer fees, conveyancing costs and expenses linked to the move. The more cash you have available the better.
The estate agent
Your estate agent needs to be chosen with care. Asking people you trust for recommendations is not a bad idea, but make sure your agent has a valid Fidelity Fund Certificate. Get your agent’s insight on how well they know the area and how much stock they have on their books. Your agent needs to make you feel comfortable and not force you into a buy. Remember this can either be an asset or a liability. Ask the agent to give you an estimate as to how much the banks would be willing to lend, based on your earnings and expenses. Remember that this figure won’t guarantee that you will be able to purchase for that sum, but it will be a good guideline as to how much you can afford.
Shop around for the best mortgage
Those days of automatically using the bank where your accounts are held are well and truly over. The best is to use a mortgage originator, which will apply to all the major banks on your behalf and will find the best interest rate possible.
Don’t allow yourself to be pushed into a property deal, instead, be patient if you can’t find what you looking for. Most people have unrealistic expectations when it comes to property and the possibility that the home you buy does not tick all the boxes is great. If the house suits your needs and is well priced, consider putting in an offer sooner rather than later.
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Want to rent, buy or sell your property on the Atlantic Seaboard or in Woodstock, Cape Town? Berman Brothers Properties specialise in listing and selling your property and we have a variety of available houses, new apartments and other real estate options to ensure that you find your next dream home. Contact us on +27(0)21 439 9030 to find out more about the latest developments in area hotspots such as Woodstock, Green Point, Sea Point, Llandudno, Camps Bay or Three Anchor Bay.
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Author: Berman Brothers