Thinking of Buying a Property

The first thing to consider is affordability and thereby determining your buying price bracket is essential.

It is quite easy to use an online calculation tool to help you assess your affordability but if you are serious about buying rather speak to a Bond Originator to get a far clearer and accurate assessment.

It is also advisable to understand that one should not buy at what the maximum you can afford on paper as this means you will leave yourself with absolutely no safety space for increased interest rates and unknown things that life throws at you!

One should actually use the assessment to help gauge what you are prepared to spend on a monthly instalment, keeping in mind that you ideally would not want to negatively affect your lifestyle and land up regretting the purchase of your home.

Nice to haves, like weekends away and other leisure activity you do monthly or regularly and the cost you incur to do this needs to be considered when budgeting for a price bracket.

Calculate your debt-to-income ratio to help you asses what is affordable for you and try pay off as many debts as possible before embarking on this journey as to free up income.

Purchasing a property is a huge financial commitment and getting the affordability to lifestyle ratio right from the beginning will benefit you.

When you are thinking about purchasing a property, you need to consider many aspects of what your actual requirements are over and above the financial affordability, so when planning consider the following:

• A price range, ideally what you can afford, keeping in mind that interest rates are flexible, and an increase is always possible. Be aware that besides the cost of a monthly bond you would need to afford monthly costs like municipal rates and utilities, Levies if you are in a sectional scheme, home insurance, and normal repair and maintenance cost.
• Which neighbourhoods you would prefer to live in.
• What type of property, would you prefer it to be, a house, an apartment and would it be free standing or in a sectional scheme.
• What size property would meet your needs, including bedrooms, garages etc.
• What facilities does it need to have, like how many garages, a pool or perhaps an entertainment area.
• Does it need to be move in ready or would you like to perhaps renovate.
• What community facilities do you need to be near, like schools, churches and sports.

There is also other cost involved which a buyer seldom factors, not least the deposit but speak to your preferred professional to help you understand these costs so they do not come as a surprise and become a bitter pill to swallow.

All the best to realising your dream of owning a house and making it a home.

If you are looking for a quality relationship, choose P3 Properties to be the right Property Professional for you!