Buying my first house

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joker08

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I have started to look around for houses, contacting agents from online listings.
The only thing I know is that I need to get a pre-approval from the bank just to be sure that I know what amount I can afford. Then the agent will take care of the rest of the paperwork.
I dont know anything more about buying a new house and what I learnt from being on this forum is dont trust the agent.
Is there like a easy guide that I can refer ?
 
Go through this thread:

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 mybroadband.co.za
 
joker08 said:
I have started to look around for houses, contacting agents from online listings.
The only thing I know is that I need to get a pre-approval from the bank just to be sure that I know what amount I can afford. Then the agent will take care of the rest of the paperwork.
I dont know anything more about buying a new house and what I learnt from being on this forum is dont trust the agent.
Is there like a easy guide that I can refer ?
Click to expand...
Good luck
Which area if I may ask
 
joker08 said:
I have started to look around for houses, contacting agents from online listings.
The only thing I know is that I need to get a pre-approval from the bank just to be sure that I know what amount I can afford. Then the agent will take care of the rest of the paperwork.
I dont know anything more about buying a new house and what I learnt from being on this forum is dont trust the agent.
Is there like a easy guide that I can refer ?
Click to expand...
Check a quick online tool like fnb home loan calculator

Then you know within reason, what you can afford

Go to agent tell him I am looking for places in the region of what that calculator said. (normally a bit on the high side)

Find a place you like offer 13.28% less than the asking price.

Once the seller accepts then use the agants bond originator and their lawyers (often they have special arrangements with each other so you score R2k or so on the fees)

Then fees, less than 1 million rand property, give or take R55k, more than 1 million less than 1.8 million, roughly R80k.

Wait 3 months for the process to complete

Move in.
 
Make sure you shop around when applying for your homeloan and play them off against each other, a lower interest rate will save you a staggering amount of money.
There will be many unexpected expenses, make sure you have a reasonable amount of money saved/available. Things like moving, replacing locks, putting up curtains etc add up very quickly.
 
RedViking said:
Go through this thread:

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 mybroadband.co.za
Click to expand...

So much info in this thread. So many lessons learnt. And great tips and tricks from other home owners, attorneys and even agents.

Everybody is so helpful over there.
 
I would ask the bank for a pre-approved homeloan. From that you know in what bracket you can shop.

Make sure you pay all the costs cash. It all adds up if you take a bond which is higher than 100%.

Important, ask for a flexi bond!

If you buy from a developer, the pro’s outweigh the con’s
 
Agent does very little paperwork and best not to have them do it anyway.

Beyond the OTP you will be doing all the paperwork and providing it to their parties like bond originators or directly to the bank if you prefer.

As a loose guide work on affordability at an instalment of 20% of your gross salary towards 25% at a push.

Then plan to pay it back at 30% or more whenever you can and get it down in 10-15 years saving hundreds of thousands.

Always buy for less than the bank and the government says you can afford, it’s in your better interest.
 
Do the sums, if interest rates goes up by 4%, can you still afford it.

Also take note of the ongoing monthly payments as in rates and taxes, insurance, maybe levies. Also maybe life insurance

Buying property can be fun.
 
Somebody should create a guide on buying and building a house
 
zerocool2009 said:
I would ask the bank for a pre-approved homeloan. From that you know in what bracket you can shop.

Make sure you pay all the costs cash. It all adds up if you take a bond which is higher than 100%.

Important, ask for a flexi bond!

If you buy from a developer, the pro’s outweigh the con’s
Click to expand...
What's a flexi bond ?
 
SauRoNZA said:
Agent does very little paperwork and best not to have them do it anyway.

Beyond the OTP you will be doing all the paperwork and providing it to their parties like bond originators or directly to the bank if you prefer.

As a loose guide work on affordability at an instalment of 20% of your gross salary towards 25% at a push.

Then plan to pay it back at 30% or more whenever you can and get it down in 10-15 years saving hundreds of thousands.

Always buy for less than the bank and the government says you can afford, it’s in your better interest.
Click to expand...
The house that I liked has two flatlets on rent.
Hoping to get some relief on the repayments because of it.
 
joker08 said:
What's a flexi bond ?
Click to expand...

I wish schools could teach guys whats a flexi bond on school. I recall I had a subject, teaching us on stuff on life. Writing cheque’s out (lol).

Its a bond that you can prepay (put more in)! That way you save thousands
 
RedViking said:
Go through this thread:

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 mybroadband.co.za
Click to expand...
Wow, thanks for that.
 
joker08 said:
Wow, thanks for that.
Click to expand...
I only reached post-105 of this thread.
Please tell me who pays the agent commission and how it is calculated?
If I make an offer and the bank rejects my loan do I still have to pay the commission?
 
joker08 said:
I only reached post-105 of this thread.
Please tell me who pays the agent commission and how it is calculated?
If I make an offer and the bank rejects my loan do I still have to pay the commission?
Click to expand...
Seller pays commission. As long as your OTP has your obtaining a bond as a suspensive condition you won't have any penalties if you don't get a bond.
 
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