Buying a home (Best options)

LaraC

Honorary Master
Joined
Mar 11, 2014
Messages
38,852
Hello everybody,

I’m thinking of buying a house and would like your opinion on which route to take.
  • Is it preferable to buy an established property or a newly build one?
  • Should I give preference to houses, flats or townhouses?
  • Is it advisable to purchase without registering a bond?
  • Should I risk EWC and buy or wait until the process is finalized?
Thanks for your input. :)
 

Steamy Tom

Expert Member
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Jan 23, 2019
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4,187
  • Is it preferable to buy an established property or a newly build one?
    - buying established is generally less headache and often cheaper.
  • Should I give preference to houses, flats or townhouses?
    - it really depends what you want.
  • Is it advisable to purchase without registering a bond?
    - if you can afford to ask this question you shouldn't be considering a bond
  • Should I risk EWC and buy or wait until the process is finalized?
    - i'g gonna stay out of this one
 

Dan C

Honorary Master
Joined
Nov 21, 2005
Messages
24,014
Hello everybody,

I’m thinking of buying a house and would like your opinion on which route to take.
  • Is it preferable to buy an established property or a newly build one?
  • Should I give preference to houses, flats or townhouses?
  • Is it advisable to purchase without registering a bond?
  • Should I risk EWC and buy or wait until the process is finalized?
Thanks for your input. :)
Can I move into the grannie flat?
 

beefymoocow

Senior Member
Joined
Jun 19, 2006
Messages
659
Hello everybody,

I’m thinking of buying a house and would like your opinion on which route to take.
  • Is it preferable to buy an established property or a newly build one?
  • Should I give preference to houses, flats or townhouses?
  • Is it advisable to purchase without registering a bond?
  • Should I risk EWC and buy or wait until the process is finalized?
Thanks for your input. :)
Establish houses are usually much cheaper, probably around 30-40% cheaper in this market.

Estates are usually nice particularly for investment properties but then prepare to pay the extra levies.

Depending on your cost of borrowings and the intent of the property. Are you gonna rent it out or stay there. If you staying there. It might be better to if you can buy without a bond. You save on the costs. Buying with the bond isn’t bad either particularly if you renting it out. You get a good tax deduction as well.

If will ewc deter you from buying a problem if it happens. That’s your view but just be coherent with your decision making process. A friend isn’t buying additional rental property because of ewc because he believes the country will go down. But is renovating his current home. And he has plans to enroll his new born child on the waiting list for one of these top schools in Sa.

Hope you see the hypocrisy.
 

LaraC

Honorary Master
Joined
Mar 11, 2014
Messages
38,852
I was hoping SONA 2020 would give more clarity on property rights and the way forward.

I'm of the opinion that the risks in investing in property are just to high. :(
 

zerocool2009

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Sep 4, 2009
Messages
3,329
I was hoping SONA 2020 would give more clarity on property rights and the way forward.

I'm of the opinion that the risks in investing in property are just to high. :(
Our system for property is one of the best in the world (take note). Not even the USA works with a deeds office (only on OTP's)

I can put money on it ... We wont see land grabs or free giveaways ! Maybe if you own a wine farm in the cape
 
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beans100

Honorary Master
Joined
Jul 30, 2010
Messages
11,177
  • Is it preferable to buy an established property or a newly build one?
-My opinion, I'd go established, just to save some money and sometimes property tax is cheaper, too.
  • Should I give preference to houses, flats or townhouses?
-Also just my opinion, but stay away from anything to do with body corporates or sectional titles. Lots of headaches can be averted.
  • Is it advisable to purchase without registering a bond?
-Uhm, you got the cash?
  • Should I risk EWC and buy or wait until the process is finalized?
-Buy! If EWC is as bad, just look at it, as if you were renting. If EWC turns out to be not so bad, you're miles ahead.
 

LaraC

Honorary Master
Joined
Mar 11, 2014
Messages
38,852
Our system for property is one of the best in the world (take note). Not even the USA works with a deeds office (only on OTP's)

I can put money on it ... We wont see land grabs or free giveaways ! Maybe if you own a wine farm in the cape
It is not only farms that are at risk. The ANC eluded that spatial transformation in urban areas are also on the table. :(
 

LaraC

Honorary Master
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Mar 11, 2014
Messages
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/snip
  • Should I risk EWC and buy or wait until the process is finalized?
-Buy! If EWC is as bad, just look at it, as if you were renting. If EWC turns out to be not so bad, you're miles ahead.
The benefit of renting is that I will not lose all my savings. If EWC go ahead, even if it isn't so bad, I will still be better of since house prices will be much lower than it is now. ;)
 

Superman-7

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Joined
Jul 29, 2018
Messages
207
I was hoping SONA 2020 would give more clarity on property rights and the way forward.
Must be the first SONA you watched. These things NEVER provide any clarity or direction on anything.

The EFF beating the apartheid horse to death, disrupting proceedings like naughty children, politicians arriving in expensive cars, dressed in designer clothing, while the rest of the county burns, and a president who is woefully out of touch with reality.. THAT is your state of the nation.
 

LaraC

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Mar 11, 2014
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Must be the first SONA you watched. These things NEVER provide any clarity or direction on anything.

The EFF beating the apartheid horse to death, disrupting proceedings like naughty children, politicians arriving in expensive cars, dressed in designer clothing, while the rest of the county burns, and a president who is woefully out of touch with reality.. THAT is your state of the nation.
Yes, and to use the Presidents words; "I was shocked" with our Parliamentarians conduct. :(
 

Superman-7

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Jul 29, 2018
Messages
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It is not only farms that are at risk. The ANC eluded that spatial transformation in urban areas are also on the table. :(
Property as a primary residence has not been an attractive investment for a very long time now, despite what you might still hear from a few boomers. Your money is better spent in ETFs or other offshore investments. Simple as that.

What people seem to miss is that even if EWC doesn't happen, its mere mention is a blow to market and investor sentiment.
 
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beans100

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Jul 30, 2010
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The benefit of renting is that I will not lose all my savings. If EWC go ahead, even if it isn't so bad, I will still be better of since house prices will be much lower than it is now. ;)
Could be, ja. My situation is, my bond is less than what my rent money was (and my rent was going up). If I calculate 10% increase, year on year, I am saving like R4000 atm on what my rent would've been. So for me, I feel i'm better off than when I was renting.
 
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LaraC

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Could be, ja. My situation is, my bond is less than what my rent money was (and my rent was going up). If I calculate 10% increase, year on year, I am saving like R4000 atm on what my rent would've been. So for me, I feel i'm better off than when I was renting.
Are you still saving if you include insurance, rates and taxes and maintenance? :unsure:
 

zerocool2009

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Only if the homeowner has a new bond. There are thousands of people who have already or almost paid their bonds. :(
New or old bond (lol), ANY bond, even if someone owe's a nice round R0 (there are complications in any situation related to people "taking" property.

Bring it on ! I doubt we will make graves quick enough for the next "fight"
 
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LaraC

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New or old bond (lol), ANY bond, even if someone owe's a nice round R0 (there are complications in any situation related to people "taking" property.

Bring it on ! I doubt we will make graves quick enough for the next "fight"
I hope it doesn't come to that. :oops:
 

Gozado

Active Member
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Jan 13, 2019
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85
Could be, ja. My situation is, my bond is less than what my rent money was (and my rent was going up). If I calculate 10% increase, year on year, I am saving like R4000 atm on what my rent would've been. So for me, I feel i'm better off than when I was renting.
Are you still saving if you include insurance, rates and taxes and maintenance? :unsure:
Here's a calculator, on Rolling Alpha, the blog of Jayson Coomer, a chartered accountant, to help compare the costs (including such as those you mention) of buying with the cost of renting.
 

beans100

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Are you still saving if you include insurance, rates and taxes and maintenance? :unsure:
Yes, old-ish house, old-ish neighborhood = low rates and tax. My Rates and tax is R350, municipality bill comes to just under R1000. I won't include electricity, as I would've bought that if I were renting as well.
Not much to fix atm. Mostly I'll fix myself, anyway. Anyway, lots of variables to take into account. I just bought a huge bargain. Not to say everybody is going to be better off, buying.

Edit: Oh, building insurance isn't that much.
 
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