South African Home Loans Explained

The purchase of a house or a property is probably one of the biggest buys a person makes during his or her lifetime. It is, therefore, very important for one to be very well informed to avoid any pitfalls after the purchase. For this, there are some important aspects that need to be considered and taken care of before you invest in a property.

Affordability

One of the primary concerns for all prospective buyers. Affordability is a vat aspect and covers some sub-points.

Down payments

Check all your cash savings and determine the amount that you can afford to put down as a deposit when you start searching for a house to buy.

Bond amount

The bond amount is the amount that you play every month in lieu of the loan taken to buy the house or the property. The best way to calculate the bond amount that you can afford to pay each month is to calculate your total monthly earnings and then subtract the expenses. The banks usually fix a maximum bond amount resulting up to twenty five percent of your monthly gross income. If you have extra earnings beyond your salary, you can afford to go beyond that, however, keep in mind that you do not over commit yourself.

Realizing the transfer costs

The other charges, like the conveyancing and the transfer fees have to be paid by the buyer. Hence, when buying the house, consult the appropriate tax sheets and calculate them before you make the purchase. There are some ways which can help you stay away from these charges. For example, if you are buying a house that is new and has never been registered, you are entitled to be exempted from the transfer fees.

Bond approval

Always look for legitimate financial institutions and moneylenders when you apply for a loan. Be sure to consult a professional for help.

Where should you buy

Location

This is the most important thing that should be taken care of before you buy the property. Get suggestions from your local friend or family, and also get some opinions from your would-be neighbors if you are seriously interested in the property.

Security

Remember to always call on the local police authorities to check on the crime rate in the area before you make the payments for your new home. Check with the local residents and also keep an eye for any open land or under-construction sites that might help in promoting criminal activity.

Additional facilities

Scan the area for the other additional facilities that might be in the vicinity. These include educational institutions, hospitals, banks, supermarkets, bus stations and practically anything that could help make your life easier.

Find the perfect home for yourself

Real estate agents

This is one of the oldest and possibly the most reliable way to find the perfect place for you to move in. Register with as many estate agents as you can and hope that they will help you find the right house for you.

Search online

This is fast becoming the modern trend. Many properties that are directly put up for sale by the owners and are not registered with the agents are displayed on the internet. Select the one that suits you most.

 

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