Buying a home is probably the most important investment you will ever make. It is not like buying a car and you need to know exactly what it is that you are looking for.
You have to know firstly, what it is that you can afford. Don’t fool yourself by telling yourself can afford it if you know that you can’t.
If you want to save money when buying a home, which most probably is the case, remember that it is never wise to buy down the interest rate.
Buying down the interest rate means that you as the borrower pay extra money to the lender for a cheaper interest rate on your loan than you would normally qualify for. The only time that doing this is advisable, is when you are 100% sure that you will live in the house for over 10 – 15 years, and lets face it, no one really knows for how long they’ll be where they are right now.
All houses have some problems. Some have more than others. Some are secret little problems or faults.
If you don’t conduct a proper home inspection, these secret little problems or faults could cost you a lot of money. It is vital that a thorough home inspection is done before you sign anything.
With a little more time and effort, you could save a lot of money when buying property. Property is an inefficient asset, meaning it’s not scrutinised daily by thousands of participants like stocks and bonds, so there are many opportunities for those willing to do some research.
It is important to become and expert of your local property market and take time to find the right place. There will always be opportunities and jumping in at the first one that comes along isn’t the answer. The more time you spend looking at property and becoming familiar with the property market, the better your judgement becomes.
Most homeowners’ annual earnings are increasing year-on-year ahead of the current inflation rate, due to improved conditions of South Africa’s economy.
When buying a home, it is best to try and get an adjustable rate mortgage for lower payments and less paid in interest while you live there.
According to the National Association of Realtors, most people move every 5 – 7 years, which means that if you are buying a house now, chances are you could be moving in as little as 5 years from now.