Today’s posts from our featured Port Elizabeth Blogger:
10 Must Do’s that First Time Home Buyers should not ignore by The Port Elizabeth Property Blog:
The world is constantly changing and so are the demands of couples. A couple can be any two people who are in a relationship. I will not here go into the many various possible permutations of the modern couple, nor would it serve any purpose in this article.The fact is that irrespective or who you are, knowledge can help you, not only now, but in the future.
So let’s begin with some basics and work our way along from there, shall we.
TIP 1: AFFORDABILITY
Start with what can you afford independently and together. This exercise should include getting advice from a bond originator who is aware of the financial institutions’ lending criteria. This will also mean that you have added one person to your professional team.
It may be prudent to also get advice from a registered financial planner, who could maybe help work out some options which could assist with estate planning (you are never to young) and assist you with your budgeting.
The key is that there are many very creative financing options, which may be available to you. I am not a financial planner, but so often in real estate practise I come across people who have cash investments and a bond; possibly they need to get a financial planner to look at the net result should they rather pay the investment into the bond and the tax implications, but I digress.
TIP 2: OPENNESS
This process will test your openness with each other. If one of you have issues such as default judgements, have been a little negligent when handling credit, maybe has a lot of credit (store cards, credits cards, a vehicle on hire purchase etc) this may all erode that person’s affordability and the way in which the financial institutions score her or his credit, which will affect the amount granted or even the terms of the loan. If one of you have unresolved tax issues, get these sorted before going house hunting; as SARS do a check issuing the transfer duty receipt.
TIP 3: COMMUNICATION
This is vital to communicate very clearly throughout the process. At this point, I will mention that you will need to get a professional estate agent, it is vital. As time has passed the modern professional estate agent, is increasingly becoming a trusted professional adviser. Given the professionalisation of the industry, maybe your postbox might not be the best place to recruit your adviser.
To save time and money; make sure that your estate agent you choose has a thorough process of determining and reconciling what you both need and want. In addition, a professional estate agent will take the necessary time to counsel you through this process.
If done correctly, you will both be on the same page with your estate agent. Now that the estate agent knows exactly what you need the process can begin and they will only show you properties which meet our brief.
We have all heard of the tragic alternative, being the agent you meet at a show house who after getting the basics rushes you to almost every property in the city; making you frustrated and confused.
TIP 4: WHAT TO CONSIDER
What is your lifestyle requirements now? Increasingly lifestyle living is becoming more popular. With travel costs and time being a premium; living, working and playing in the same area is not only cost effective, it makes for a better quality of life.
Then comes the concerns relating to travel to work and back. Proximity to family, school, public transport etc may all play a part in your decisions. the other practical considerations are shopping, entertainment and sporting facilities.
What type of lifestyle options would suit us? There are, of course, many options but basically there are: freehold (your normal house in the street) and communal living where there are rules and regulations, but also great lock up and go freedom.
TIP 5: DO YOUR BUDGET
I have covered some of the costs covered by homeowners in another post. It is imperative that you remember that owning a home is also owning the expenses which are part and parcel of this exciting experience. This may include rates, municipal charges, levies, insurance on the property and the contents, gardening costs, maintenance, unforeseen occurrences etc Then, of course, there is the payment that nobody ever wants to miss to miss: the dreaded mortgage bond payment.Also, remember you may want to ensure that you are not totally maxed out when you get your bond, because, like the sea, the bond rate goes up and down.
TIP 6: HOW TO GO ABOUT MAKING AN OFFER
You find the ideal home and now you get that funny feeling which is a mixture of excitement and, of course, trepidation. What now? The agent is already starting to fill in an offer and then the doubt kicks in.
An experienced professional agent will counsel you through this phase to ensure that you are well informed throughout the process.
The key is having the information that you need to have before making the offer so that there are no major surprises:
- Ask when various cost will need to be paid;
- Ask for a quote of the transfer and bond costs applicable from the conveyancer;
- Ask for a copy of the title deed (it helps to see what you can and cannot do on the property and prevents any surprises);
- Ask you a copy of the approved plans showing all the improvements (buildings, swimming pools etc) prior to registration of transfer;
- If communal living, ask for the applicable rules regulating the owners
- Ask for a copy of the financials;
- Ensure that any special levies have been disclosed;
- Carefully review the seller’s declaration;
- If there is wood consider getting a Borer Beetle Certificate (including wood destroying insects);
- Know what the rates, levies etc are before signing.
Clinton Begley (PPRE MPRE CEA B.PROC (NMMU)) is the co-founder, Principal/Director at BOLD REALTY, in Port Elizabeth, South Africa. In addition, to his passion for people and real estate, he is also an experienced trainer, coach, and mentor. He holds a B.Proc degree through the Nelson Mandela Metropolitan University and is a non-practising Attorney, Notary, and Conveyancer (with over a decade of experience). His legal and real estate experience is augmented by studies towards an MBA degree through the Nelson Mandela Metropolitan University Business School, which he is scheduled to complete soon. This article reflects the personal opinion of the author only, it is NOT intended as legal advice nor may any reliance be placed upon it. The article is purely for information purposes and you are advised to consult an expert before making any decision.
Read more here: The Port Elizabeth Property Blog
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