1) Put aside more money than you think you’re going to need. The days when all you needed to buy a home was a 10 per cent down-payment are long gone. “You need an average deposit of 12 per cent,” says Simon, “and then you still have to factor in all the additional costs.” With the average price of a home in South Africa now standing at R1.3-million, you’ll be looking at transfer duty of R15,000 to R20,000, a bond registration fee of R10,000 to R12,000, and an initiation fee of about R6,000. That’s close to R40,000 on top of the asking price. Know what you’r win for, and keep saving!
2) Get a property inspector to take a good look around. Buying a home is the biggest financial commitment you’ll make in your life, says Maya, and yet, “we agonise more over buying a pair of shoes.” Don’t leave anything to chance. Pay for a qualified property inspector to go through your dream home and give you a detailed report on every little thing that may need fixing. The service will cost you about R4,000, and could save you a fortune and a huge amount of hassle. Make a full property inspection a condition of the sale, advises Simon. “It’s a very valuable thing to do.”
3) Don’t be afraid to ask your bank for a discount. Everyone knows the three secrets of buying the home of your dreams: Location, Location, Location. But there are three secrets to paying for your dream home too. Negotiation, Negotiation, Negotiation. That applies not just to your deal with the seller and agent, but with your friendly bank manager too. Some banks will be happy to discount your fees, says Maya, as long as you have a good credit history, and you’re bold enough to go ahead and ask. You’ve got nothing to lose, and you could have a whole lot to save.
4) Even when you’ve paid back the money, you’re still going to be paying for your house. “A house is a living asset,” says Simon. “You have to continue improving if you want to realise the value.” That means being prepared for everything from a minor upgrade to the patio, to a major re-fit of the kitchen or bathroom. And none of that, these days, comes cheap. But in the long run, it will all add to the value of your home sweet home, when you decide the time has come to move on, and start the cycle all over again.
5) Think very carefully before you put your money down. Buying a home can sometimes be the worst financial decision you can make, warns Maya. “Getting into the property market is a good idea, but only if you’re sure you can afford it.” If you can, and you’ve weighed up all the options, and you’re absolutely sure that the house of your dreams really is the house of your dreams, go for it. After all, whether it’s a mansion in a country estate, or humble fixer-upper in a nice part of town, there’s no place like a home to call your own.
*For more expert insight and advice on buying your home sweet home, watch the full BrightRock Iris Session, hosted by David O’Sullivan.
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