Buying a home....

[|tera|]

Hi,

So I've been thinking about buying a home for myself in future.
My first priority is to settle outstanding debt I have. Get my credit record sorted and be eligible for a home loan.
I don't have any experience in buying property though.

There are advertisements on Facebook with small apartments/complex/houses that I've seen that says the following:
Real estate agency (it is a legit agency) offers a flat/apartment/small house in a complex for R500K to about R1.5Mil
A home repayment of 1Mil is payable at about R8000 per month.

The places are really nice. I wouldn't mind living there or owning the place. It's in the same City I work in too.
So let's say I buy a place with a 2 bedroom, 1 or 2 bathroom, etc. etc. and it comes to about R1Mil or R1.5Mil what do I need to know?
My salary isn't top of the tier and I'm still working to be permanently employed (doing contract work right now).
I would however be able to repay a house at around R8K - R10K per month.

My logic says that I'm renting at that amount soon, so why not just buy a place when I've sorted debt and be on my merry way?
I'm thinking on the long-term. I'm 37 and I've got a backlog cash-wise that I need to make up for (debt, small salary in recent years etc.)

Is there any advice you could give? Things to look out for? Insurance? Specific Titles of places for sale? Monthly fees above repayment rate?
I just don't have a clue about any of it.

Thank you,

 

[scudsucker]

Step 1: do as much research as you can.
Step 2: expect to pay much more than you would like (legal fees are a bitch)
Step 3: do NOT trust an estate agent at all.

https://mybroadband.co.za/forum/threads/bought-a-house-discovered-in-week-2-that-it-leaks-like-a-sieve.1161708/

Offer to purchase question

Going to keep it as short as possible. We are in the market for a new home. Went looking at a few places and liked one a lot. But house does need some work and area is not exactly our preferred location. Original listing price was way out of feeling with the market and area. We decided to...

mybroadband.co.za

Rights under occupational rent

Short version. Bought a property and took occupation. We are picking up problems with the electrical in the house (even with coc) and also major issues with blocked drains across all bathrooms. What are our rights in terms of making the current “landlord / owner” pay for the maintenance...

mybroadband.co.za

How long can/should I go when offering to buy a house?

Hello all So I have browsed through the brilliant Offer to purchase thread and did not get an indication to this specific question. I am a first time house buyer and fairly clueless with how the market is. I viewed a house that I like very much and scheduled a second viewing with the agend. I am...

mybroadband.co.za

etc

It can go smoothly - mine was fine, or it can be a complete disaster with massive stress.

 

[rodga]

What you pay in rental does not equal what your monthly ownership cost will be.
Insurance, rates and taxes/levies, insurance, security/armed response, general maintenance, emergency repairs etc

Do you have a deposit? If not start saving.

 

[My_King]

Hi,

So I've been thinking about buying a home for myself in future.
My first priority is to settle outstanding debt I have. Get my credit record sorted and be eligible for a home loan.
I don't have any experience in buying property though.

There are advertisements on Facebook with small apartments/complex/houses that I've seen that says the following:
Real estate agency (it is a legit agency) offers a flat/apartment/small house in a complex for R500K to about R1.5Mil
A home repayment of 1Mil is payable at about R8000 per month.

The places are really nice. I wouldn't mind living there or owning the place. It's in the same City I work in too.
So let's say I buy a place with a 2 bedroom, 1 or 2 bathroom, etc. etc. and it comes to about R1Mil or R1.5Mil what do I need to know?
My salary isn't top of the tier and I'm still working to be permanently employed (doing contract work right now).
I would however be able to repay a house at around R8K - R10K per month.

My logic says that I'm renting at that amount soon, so why not just buy a place when I've sorted debt and be on my merry way?
I'm thinking on the long-term. I'm 37 and I've got a backlog cash-wise that I need to make up for (debt, small salary in recent years etc.)

Is there any advice you could give? Things to look out for? Insurance? Specific Titles of places for sale? Monthly fees above repayment rate?
I just don't have a clue about any of it.

Thank you,

As was told above.

1. **** agents
2. Save at least R85 for bond and transfer registrations.
3. Get a deposit on top of the R85.
4. Best decision you can make is getting your own place, go for it

 

[gregmcc]

Save every cent and then put down as much deposit as you can.
Start up a spreadsheet with monthly costs and see how much you can afford and what you can pay back without putting too much strain on your monthly finances.. You will be surprised how quickly it all adds up.
- Cost of repairs. They is always something that needs fixing when you move in.
- Insurance
- Moving costs
- Levees
- Security
When you view the place don't be afraid to check everything and see what needs fixing. Open and close all winfows, cupboards, check for leaks, seals on windows. Any mold on walls/ceilings?

 

[Pineapple Smurf]

I enjoy living in a complex, it has its pros and many cons
Read the Body Corporate Rules of what is allowed and not allowed

Many people have come here to my complex with pets and we chase them away, read the rule book please

 

[HunterNW]

Hi,

So I've been thinking about buying a home for myself in future.
My first priority is to settle outstanding debt I have. Get my credit record sorted and be eligible for a home loan.
I don't have any experience in buying property though.

There are advertisements on Facebook with small apartments/complex/houses that I've seen that says the following:
Real estate agency (it is a legit agency) offers a flat/apartment/small house in a complex for R500K to about R1.5Mil
A home repayment of 1Mil is payable at about R8000 per month.

The places are really nice. I wouldn't mind living there or owning the place. It's in the same City I work in too.
So let's say I buy a place with a 2 bedroom, 1 or 2 bathroom, etc. etc. and it comes to about R1Mil or R1.5Mil what do I need to know?
My salary isn't top of the tier and I'm still working to be permanently employed (doing contract work right now).
I would however be able to repay a house at around R8K - R10K per month.

My logic says that I'm renting at that amount soon, so why not just buy a place when I've sorted debt and be on my merry way?
I'm thinking on the long-term. I'm 37 and I've got a backlog cash-wise that I need to make up for (debt, small salary in recent years etc.)

Is there any advice you could give? Things to look out for? Insurance? Specific Titles of places for sale? Monthly fees above repayment rate?
I just don't have a clue about any of it.

Thank you,

Levies is a prickly pear up to bum.

 

[Brawler]

I believe some banks will give 100% bonds but it is not recommended. You will likely also get a better interest rate with a decent deposit.

Interest rates will only go up from here so when checking affordability, add another 2 or 3 % to make sure you are comfy.

Transfer fees are around R85k on 1.5m that you need to have on hand.
You will also need some bucks for moving, furnishing the place and other odds and ends.

Other monthly fees to factor in:
-Life insurance is often required (Min R400 pm)
-Home owners insurance ( Prob R350?)
-Home contents insurance (up to you but probably R300)
-If in a complex watch out for levies. It is very common for levies to be over R2000 for even a simple complex. It's nuts and put me off complexes entirely.
-Water, refuse, rates and taxes (R1500?)
-Savings for home maintenance (R1000?)

It's expensive but it is definitely the right move and worth making other sacrifices for. No more landlords or rental estate agents.

 

[Slootvreter]

Agree with the fact that estate agents are lying scum. Do not fall for their smooth talk, he/she is not your friend.

 

[Tman*]

I cant seem to find the thread, perhaps someone can link it - something such as: "I made an offer on a house tips and tricks" - read that from start to finish then you all set.

Dont trust any estate agents ever

 

[rh1]

There are advertisements on Facebook with small apartments/complex/houses that I've seen that says the following:
Real estate agency (it is a legit agency) offers a flat/apartment/small house in a complex for R500K to about R1.5Mil
A home repayment of 1Mil is payable at about R8000 per month.

Do your own calculations, using the PMT formula on Excel:



Rate: Whatever rate you think you will qualify for. I used 11% for this example. Always divide by 12. Edit 2: As Brawler suggested: Add 2-3% extra. I.e. you qualify for 9% plus a safety margin of 2%= 11%
Nper: Number of repayments to be paid. i.e. home loan term 20 years x 12 months = 240 payments. Adjust according to your needs.
PV: The total amount to be financed. I.e. house prices plus ???? = Total Loan at bank Edit: Less any deposit made as this will reduce the total amount to be financed.
FV: Not needed in this example. If you were trying to calculate a car payment with balloon. The balloon amount goes here.
Type: Leave Blank or insert 0.

Edit 3: So in this example for a R1million rand loan, the payment will R10 431.88. This excludes other cost, insurance, admin costs etc.

 

[Other Pineapple Smurf]

Hi,

So I've been thinking about buying a home for myself in future.
My first priority is to settle outstanding debt I have. Get my credit record sorted and be eligible for a home loan.
I don't have any experience in buying property though.

There are advertisements on Facebook with small apartments/complex/houses that I've seen that says the following:
Real estate agency (it is a legit agency) offers a flat/apartment/small house in a complex for R500K to about R1.5Mil
A home repayment of 1Mil is payable at about R8000 per month.

The places are really nice. I wouldn't mind living there or owning the place. It's in the same City I work in too.
So let's say I buy a place with a 2 bedroom, 1 or 2 bathroom, etc. etc. and it comes to about R1Mil or R1.5Mil what do I need to know?
My salary isn't top of the tier and I'm still working to be permanently employed (doing contract work right now).
I would however be able to repay a house at around R8K - R10K per month.

My logic says that I'm renting at that amount soon, so why not just buy a place when I've sorted debt and be on my merry way?
I'm thinking on the long-term. I'm 37 and I've got a backlog cash-wise that I need to make up for (debt, small salary in recent years etc.)

Is there any advice you could give? Things to look out for? Insurance? Specific Titles of places for sale? Monthly fees above repayment rate?
I just don't have a clue about any of it.

Thank you,

Was 38 when I bought my house and it was easier than I expected.

When I was 37 I had a low paying job and lots of debt. Just get your debt under control as you really need a good deposit as been mentioned before.

Check your credit score now and every month going forward. It really makes a big difference.

As for not being permanently employed, do an affordability check now and get a preapproval in principle as well. Get to know where you stand right now before planning on your next moves. Check with Bond Originators (their service is free), SA Homeloans and your bank. That's how I ended up buying my house, never realised I already qualified until I did this.

End of the day it's all about affordability and risk. To increase affordability, reduce those debt limits. Banks look at the total debt you can make with your open accounts, not the actual outstanding balance.

 

[notayoba]

I would buy WELL within my means at the moment. I think double the current interest rate is a likely outcome in a few years. Don't max yourself. If you qualify for R1.5m don't go over R1m

 

[|tera|]

Thanks for all the responses so far.
Just at work currently, so I'll try to respond later.

 

[Tman543]

There are plenty of resources available on this forum as mentioned below

Step 1: do as much research as you can.
Step 2: expect to pay much more than you would like (legal fees are a bitch)
Step 3: do NOT trust an estate agent at all.

https://mybroadband.co.za/forum/threads/bought-a-house-discovered-in-week-2-that-it-leaks-like-a-sieve.1161708/

Offer to purchase question

Going to keep it as short as possible. We are in the market for a new home. Went looking at a few places and liked one a lot. But house does need some work and area is not exactly our preferred location. Original listing price was way out of feeling with the market and area. We decided to...

mybroadband.co.za

Rights under occupational rent

Short version. Bought a property and took occupation. We are picking up problems with the electrical in the house (even with coc) and also major issues with blocked drains across all bathrooms. What are our rights in terms of making the current “landlord / owner” pay for the maintenance...

mybroadband.co.za

How long can/should I go when offering to buy a house?

Hello all So I have browsed through the brilliant Offer to purchase thread and did not get an indication to this specific question. I am a first time house buyer and fairly clueless with how the market is. I viewed a house that I like very much and scheduled a second viewing with the agend. I am...

mybroadband.co.za

etc

It can go smoothly - mine was fine, or it can be a complete disaster with massive stress.

As advice to first time buyers

I would suggest to go view at least 5 properties with the idea to buy them to get a feel for the process. Ask everything that comes to mind. Make an low ball offer (+30% off) see what the estate agents says.
Remember Estate agents are there to get the highest offer (don't believe their stories), they often let buyers compete against each other.
Do your home work on the area and get a feel for the prices the houses/apartments go for, Check last sold prices property24 (Can be anything from 80% of asking price to 120% of asking price)
Never accept the first home loan interest rate quote (Use a Bond Originator if you not comfortable negotiating with Banks)

 

[|tera|]

Thanks again for all the replies.
I'll come back to this thread in future, after following the advice here and reading the threads mentioned.
I appreciate it.

 

[gregmcc]

Some good tips here too:

South Africans are buying old homes to renovate – these are the pitfalls to watch out for

It has become a major trend to buy an older home for renovation or restoration purposes.

businesstech.co.za