BUYING FOR FIRST TIMERS

The opportunity of a lifetime is at hand - right now. Plenty of homes are available at affordable prices. Interest rates remain low. If you are a first time buyer and serious about owning your own home, then you need to move fairly quickly, to take advantage over the market.
 
Understandably you are making a major purchase you have never attempted before, and may be unusually subject to the inevitable stress and anxiety that goes with buying a home. But relax…..
 
We promise to take you through the process step by step, explaining every move we make so that you can relax and enjoy becoming property owners investing your future.
 
ABOUT FIRST TIME BUYERS
 
People who are selling their homes should know something about the market group from which their buyers are likely to appear. Many homes are perfect for a first-time buyer.
 
First-time home buyers are usually younger (between 25 and 34 years of age) and have distinct buying patterns. First-timers are often looking for homes that are smaller, and perhaps older, than repeat buyers. Approximately four in ten first-timers will buy much older homes, compared to two in ten repeat buyers.
 
First-time buyers are in the process of developing a clearly defined sense of what they want in a house. They may not have enough money to buy their ultimate dream home at first, but seventy-four percent say they like their new home better than their previous residence.
 
FIRST TIME LOANS
 
Most first-time buyers can qualify for a bond, but they may need help from parents to make the down payment or closing costs on their home. Depending on your credit record you might also need someone signing surety. We will guide you through your credit approval proves helping you find the best deal available.
 
Parents who are planning to help their children finance a home should transfer any funds several months before the house-hunting process begins. If it is a loan rather than a gift, a formal re-payment agreement should be drawn up between parents and children to eliminate potential misunderstandings or future complications with either estate.
 
Banks are keen to attract new customers and helping first time buyers is a excellent way for them to do this – so they are prepared to assist you wherever possible. They will look at structuring a loan that suits your requirements. Most banks now offer 100% and more bond packages to earners under R15000. Why not contact us to get the details or see the Finance section for more information.

POINTS TO CONSIDER

How long you plan to live in the home.
If you purchase a home and get a job transfer or decide to move after only a short time, you may end up paying money in order to sell it. The value of your home may not have appreciated enough to cover the costs that you paid to buy the home and the costs that it would take you to sell your home.

The length of time that it will take to cover those costs depends on various economic factors in the area of the home. Most parts of the country have an average of 5% appreciation per year. In this case, you should plan to stay in your home at least 3-4 years. If the area you buy your home in experiences an economic up turn, the length of the time to cover these costs could be shortened, and the opposite is also true.

How long the home will meet your needs.
What features do you require in a home to satisfy your lifestyle now? Five years from now? Depending on how long you plan to stay in your home, you'll need to ensure that the home has the amenities that you'll need. For example, a two-bedroom dwelling may be perfect for a young couple with no children. However, if they start a family, they could quickly outgrow the space. Therefore, they should consider a home with room to grow. Could the basement be turned into a den and extra bedrooms? Could the attic be turned into a master suite? Does the erf size allow for expansion? Having an idea of what you'll need will help you find a home that will satisfy you for years to come.

Your financial health - your credit and home affordability.
Is now the right time financially for you to buy a home? Would you rate your financial picture as healthy? Is your credit good? While you can always find a lender to lend you money, solid lenders are more sceptical if your credit history is not good. Generally, a couple of blemishes on a credit report will stil make you a good credit risk and could qualify you for the lowest interest rates.

Some say that you should refrain from borrowing as much as you qualify for because it is wiser not to stretch your financial boundaries. The other school of thought says you should stretch to buy as much home as you can afford, because with regular pay raises and increased earning potential, the big payment today will seem like less of a payment tomorrow. This is a decision only you can make. Are you in a position where you expect to make more money soon? Would you rather be conservative and fairly certain that you can make your payment without stretching financially? Make sure that whatever you do, it's within your comfort zone.

The last thing you want to do is end up in a financial mess with your first purchase as this will affect you ability to buy in the future. Discuss this carefully with your agent to make the right decision.
 
READY TO GO AHEAD?
 
We am experienced in working with first-time buyers and am well-versed in the creative financing that can make dreams become realities. Give us a call and let’s see what we can do for you.
 
Even if you cannot obtain financing right now, you will have found out what the banks will be looking for and can work toward that goal. You will have found out what costs are involved and can begin planning and saving.
 
Maybe we just couldn’t find you a home that suits your style and price range – then we keep looking and let you know when one pops up.
 
Either way, you will have taken one step further to owning your own home and there is no time like the present to begin that journey.
   
Related articles to read :
Buying from Private Sellers
Buying at an Auction
  

For more detailed information on Finance issues go here
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