Buying Property - First things to think about

Knowing exactly what you want, how much you can afford and planning accordingly,
can save you a lot of trouble and ensure that you find the perfect property
that will for fill your living requirements.

The decision to purchase

Buying a home is not only an exciting, but also often, a frightening experience.
Besides living with your decision you will have to live in the home that you have bought. It is best for you
not to make any costly mistakes. Before you start looking for your ‘dream' home you need to organise
yourself by considering a few basic questions such as:

• What are your housing needs?
• What choices are available to you?
• What can you afford to spend when buying a house?

The time that you spend answering these questions in advance may save you from frustration
and disappointment during your search for a home.

Affordability

Before looking for a new home it is also important that you are aware of how much you can afford
to spend so that you only look at homes that are within your price range.
Knowing the following will help you:

• How much money do you have available to be used as a deposit for the purchase of the home?
• How much money must you borrow from a financial institution to pay the balance of the
  purchase price?

How much money do you need for the other costs that you must pay when buying a home
including transfer costs, transfer duty, bond costs, relocation costs and so on.

Other costs that you will be liable for

It is easy to count your available cash but remember that not all of this money can be used for the
deposit on your new home. There are many other costs including transfer costs, transfer duty,
bond registration costs, moving expenses and home insurance that you must pay before you are
finally in your new home.The time to budget for those additional expenses is now. You must be aware
of these costs when you make your purchase decision. You will also have to budget
for the payment of rates and taxes to the local authority and levies to the body corporate if you are
buying into a sectional title scheme. You may also wish to provide for the payment of service deposits
required by the local authority; the acquisition of household goods such as kitchen appliances
and garden equipment; redecorating or renovations including curtaining, security and so forth.

Here is a typical home buying expenses example

Please view the following as an example of typical home buying expenses
: The property's Purchase price is R550 000, the ordinary loan amount approved is R495 000.
The amount to be registered is R550 000 and that Home Owner's Comprehensive Insurance is required.

Expense Amount Description :