Buying a House? Here’s What to Consider

IRMGARD HAMAYULUBUYING A PROPERTY is one of the most difficult decisions one can ever make. It is not only about buying property, but is also a lifetime decision.

Many people are sceptical about whether it is the right time to buy, or whether they are making the right decision.

Here are a few things most buyers are not aware of:

Firstly, before even starting to look for a property, approach your financial institutions.

This does not necessarily mean the bank you are banking with. You can approach any other bank of your choice and compare their affordability.

The different banks will inform you of the loan amount you qualify for.

They will give you different amounts that you qualify for with different interest rates, and you can always negotiate with them.

You can try all the banks and see which one gives you the best option.

Remember to always have a good credit record; avoid bad debt by always making sure your debts are paid on time for the bank to confirm that you are a good debtor .

Second, it is always best to use a trusted and registered realtor.

We all know that realtors are employees just like any other service providers. They are part of the process, the same way we use conveyancers to do the transfers and banks to finance the property.

There is a misconception that realtors increase the price of the property, but that is not the case. Keep in mind that the seller, not the buyer, pays the commission.

Potential buyers should keep in mind that involving a real estate agent or not does not necessarily mean you are saving money.

A realtor, who works for you, can protect your interests and guide you through the buying process – from negotiating a price to negotiating other factors that you were not aware of and making the process easier and faster.

Before choosing a realtor, always make sure you are choosing a realtor that is ready to represent you.

Another thing is to think about commitment.This is not necessarily about your mortgage, but when you get married, the laws of your state generally determine how your assets are treated, and ultimately how they are distributed at divorce or death.

The same rules do not necessarily apply when you are not married.

That means you need to think long term. When you buy a house with your significant other, who is not your spouse, always remember that you can choose to have two separate contracts and shares. If you are putting in a higher payment, always ask your conveyancer to have two separate agreements with written percentages of how much shares each partner owns.

Make sure you have an exit plan if things do not go the way you hoped.

It is also important to look beyond the colour of the house. Often, your dream house has that one room that you are already fantasising about changing.

You can never find your perfect home, unless you are building it yourself.

Look beyond things that you can change later. This is worth stressing because people often lose out on good homes because of minor things like paint colour, a bathtub instead of a shower. These are things you would eventually need to change.

Buyers focus on appliances and counters but sometimes forget about the cost of labour which can double to treble the cost.

That does not mean that you should give up on a house in need of a significant fix but you should factor in those costs.

Do not lose out on a good deal because of minor things you can change. What is most important is to find something that suits all of your needs and many of your wants.

The other thing is to concentrate only on the purchase price.

High-end suburbs tend to have higher rates and taxes than low-income areas.

And it is not just home improvements that can cost money, maintenance too.

It is a good idea to ask questions about upkeep for extras like swimming pools, air conditioners and outer buildings.

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