Buying a home is one of the biggest investments that you will make. Here are a few tips to keep in mind when shopping for a home.
When you think of buying your first home, you might consider your credit history, your savings and even the implications of such a large purchase. But that isn’t where it ends. You’ll find a host of other important factors to keep in mind. Here are some of them:
Beware hidden costs
There are many fees that no one tells you about until you’re making an offer. You need to save up for transfer fees, conveyancing fees, body corporate fees and usually a deposit for your utility bills as well. These costs add up if you don’t keep them in mind when doing your calculations and you’ll be on the back foot financially. You can get up to 1% cash back if you apply for a Nedbank home loan online here, which can go a long way towards helping with some of these hidden costs.
You may not know what your life will look like over the next five years, but try to have some idea before buying a place. Buying a bachelor flat may seem like a good idea now, but if you plan on moving in with someone and having a baby in the next few years, you’ll quickly outgrow the space and will then have to either sell it or rent it out.
Avoid budget woes
Don’t look at properties that don’t fit into your budget – it’s a frustrating exercise that will make you unhappy in the long run. Work out what your budget is and look for what you can get for that amount in different neighbourhoods.
Dig deep for a deposit
Even if you’re eligible for a 100% home loan, putting down a deposit is a good idea – your monthly instalments will be lower. While this doesn’t seem all that important when you’re on the hunt, keeping your monthly costs low is something you will appreciate once you’ve bought a place.
Remember that only fools rush in
This isn’t like buying a pair of sneaks that you’ll never wear again; it’s a huge purchase. Don’t let agents or sellers rush you. You have to live in that home, so take your time deciding. Take time to check small things like cellphone signal as well. It may not seem like an issue until you live in a house where you have to stand in a specific spot to get signal.
The Nedbank Young Professionals offering includes home loans of 100% up to R1,5 million. Apply online and qualify for 1% cash back (up to R15 000). For more information visit nedbank.co.za/professionals.