How much can you afford when buying your next home?
Category News
No matter how much you may love your current home, sometimes there are unexpected changes in our lives and circumstances, like a new baby, financial difficulties or a job change, which require us to purchase a new home to meet these needs.
In this case, what type of home you can afford will be of major concern. Here is a guide to determine what you can afford:
Determine what kind of home you want now, and with the future in mind:
Compile a comprehensive list of your essential requirements, such as:
- Suburb's of interest
- House type - apartment, cluster
- Size requirements - bedrooms, bathrooms
- Nearby amenities - medical, schools, shops
- Other special features - gated community, garden, pool.
You could also add to the bottom of your list, some "nice-to-have" items which you may also consider.
Determine what your living expenses are and may be:
Firstly, compile a list of your current expenses - some may increase, decrease, be eliminated or even scaled down.
2. Add the extra items that the new house is likely to require, such as:
- Transport
- Domestic worker
- Internet connectivity
- Security - armed response
- Gardening or Pool equipment
- Municipal costs - rates, electricity, water
- Levies
With both these lists, you will have a better idea of your future budget needs.
Determine what you can afford
Before starting to house hunt, it is best to have an idea of what you can afford. Use a Bond Affordability Calculator to obtain a realistic indication of your price limit. For more information, follow this link: (https://www.homesofdistinction.co.za/calculators/)
For the satisfaction of knowing exactly how much money your bank will lend you, subject to a property appraisal and other requirements, then you can approach your bank to be pre-qualified before you begin house-hunting.
Once you have an indication of the Bond amount, you can also calculate what your bond repayments will be by following this link:(https://www.homesofdistinction.co.za/calculators/)
With the results of the Bond Affordability Calculator, and your list of home requirements, and likely expenses, you are now ready to search for your ideal home.
How to Find your Ideal Home
Search our website www.homesofdistinction.co.za to establish what properties match your requirements and their prices.
However, it is always best to use a reputable Estate Agency and their Area Specialist Real Estate Agent for an expert opinion on the properties in your proposed suburb and the area in general.
The Right Real Estate Agent
A reputable Real Estate Agent will also have information on recent sales and prices in the area, current listings and planned future developments - commercial or residential - which may have an impact, at a later stage, on a property you may be planning to purchase.
This agent may also have an idea of the additional costs on your future budget list and will hand-hold you throughout the buying process by:
- Organising property viewings for you.
- Guiding you on the right price for the property.
- Guiding you on any defects on the property that you may have overlooked.
- Guiding you on any possible hidden costs you may not have accounted for in your budget.
- Guiding you on making an Offer to Purchase.
- Assisting you in applying for a Home Loan and getting the best interest rates for you.
- Guiding you on the Bond and Transfer costs you will incur.
- Guiding you through the moving-in process.
A professional and committed Real Estate Agent will also be available for, and provide, a satisfying after-sales service. To contact one of our Real Estate Agents, follow the link: (https://www.homesofdistinction.co.za/agents/)
It is important to be absolutely thorough in the preparation of determining your affordability to buy a new home, so that you do not overspend or over-commit yourself and find yourself in financial trouble a few months later.
For more information on our services and listings, follow the link: https://www.homesofdistinction.co.za/....
To contact us, follow the link: https://www.homesofdistinction.co.za/
To contact one of our Real Estate Agents, follow the link: https://www.homesofdistinction.co.za/agents/
Author: LV Digital
