Buying your home should be an exciting life event, however, the process can often be overwhelming. We’ve put together a short guide to walk you through what to expect when it comes to the buying process.
What should I be aware of before applying for a bond?
The first thing to make sure you know is exactly what you can afford. This isn’t just about understanding how much of your income you have available. You should also factor in your savings and your credit score.
Many of our clients do not have savings to be able to put down a deposit and have been applying for 100% bonds. Thankfully, many lending institutions have made 100% home loans more accessible.
Earlier this year, FNB dedicated more focus to helping customers in the affordable income category, opening up an opportunity to make buying a home easier for those in the income range of R3,501 to R22,000.
Can I get any financial help?
You may be questioning how someone in the lower end of that bracket, can possibly afford a bond repayment. Two reasons. The first is that as of July 2021, the prime interest rate remained at 7%, meaning the repayment amount still stands at the lowest in years. The second is that the government offer a Finance Linked Individual Subsidy Programme (FLISP) to supplement home loans, helping families that otherwise could not afford it, to own a home.
Keep in mind that to get a 100% bond, you must have a clean credit rating, a strong repayment history, and stable employment.
Which home loan should I get?
There are many lending institutions out there, with a variety of home loan offerings. It’s a good idea to look around before starting the loan application. You will likely be tied to your bond for several years, so it’s important you get one that works for you.
You probably put effort into buying a new couch, once you’ve decided on the right one, but can’t buy it outright. Think about the questions you’ve asked yourself. Can I afford a deposit? How much can I afford to pay back each month? How long do I want to be paying back for? And that’s just a couch. You need to ask yourself these same questions before embarking on a home loan.
You may have banked with the same financial institution for years, but that does not mean they will offer you the best rate, or make it easier for you to get a 100% loan. You need to compare the available bonds out there.
An easy way to do this is to use a bond originator, who offer a free service. These companies have access to various lenders and can find you the best deal. There are a few out there like ooba, BetterBond and Get@Bond. Some even offer handy tools to help you understand what you can afford, such as bond calculators.
How do I choose the right property?
Finding the right house for sale in the Garden Route, for you and your family, is a big decision. Here are some tips for helping you choose a place that suits your needs.
Firstly, remain pragmatic. Only look at places within your budget, and don’t be tempted to look at properties that you cannot afford.
Think about your current needs and your future goals. For now, you may be happy in a small, one-bed apartment, but maybe you soon want to start a family. With buying, you want to consider a home that you’ll be happy in for several years. You should look at the number of bedrooms and bathrooms, whether or not it has a garden, garage, or WiFi/Fibre, depending on your present or upcoming requirements.
Also, contemplate the right neighbourhood. Do you want somewhere in the heart of the hustle and bustle of the city, or do you need to be in a quiet, safe area? How close do you want to be to your work, schools, healthcare, and amenities?
What other costs should I be aware of?
There are often initial costs involved in buying a home. A run-down house needs a lot of work, and possibly some expensive renovations. Even if an established home isn’t run down, it might not be decorated to your taste, so factor in redecoration expenses. Don’t forget to calculate the household running costs. Old homes tend to use more power than new builds. And in certain areas, the levies or municipal taxes can be high.
Don’t forget the transfer costs involved in buying an established home. These can be significant, and you should make sure you budget for these. You can use a transfer calculator to give you an idea of what these will be. There will also be bond registration, a once-off bank fee that all lenders charge.
Lastly, you may need to hire a home inspection services company to check an established property, before you can submit an offer. They look for things like damp, rot, structural damage, that the plumbing, gas and electricity is up to spec, and if it has an asbestos roof, or lead-based paint.
The benefits of buying a Mooikloof home
As trusted developers, we are proud of our high standard builds, and 40 years in the property building sector. We will always fully disclose to you the condition of the property, and negate the need to spend on a home inspection services company as would be needed when buying an established home.
We offer different options for the number of bedrooms and bathrooms. Each of our Boschkloof houses has a garage, a small garden, and is Fibre ready. Our estate is fully fenced and has 24-hour security at the entrance. We are within a short driving distance of beautiful beaches, Garden Route Mall, George Airport, and lots of restaurants and shops.
There is no transfer duty or agent commission to pay when buying one of our new homes, keeping your buying costs low. We are upfront about levies and municipal taxes, which currently stand at R650 and R1,000 respectively for our Boschkloof homes.
According to various reports, there is a slowing down of available properties around George and the Garden Route, with fewer new developments.
We are currently in our second phase of the Mooikloof Country Estate build, and our two and three-bedroom units are selling fast. We will soon begin the next phases of our development, including the construction of apartments and a retirement section.
Contact us today for more info.
