Finding the perfect family home is one of the most important and exciting decisions a family can ever make. The right property can create a space in which to create lifelong memories as well as the ability to generate greater financial freedom.
Johann Groenewald, licensee for Seeff Goodwood. You can finance your property purchase and pay for it over a long-term period. At the end of that period, you will have an asset which is fully paid for, and which would have appreciated further in value over the years. Groenewald says further that if you are not able to afford the property entirely on your own, you can buy it with a spouse, partner, or even a family member or friend. You will, however, need to think carefully about who you purchase with as a property investment is a long-term asset, and you cannot dispose of it quickly if the relationship sours.
He highlights five important things that buyers need before buying their first home:
#1 - Stable job and a stable income. You will generally need a track record of at least three months in a steady job and will be required to provide payslips to apply for a home loan. If you are self-employed such as a freelancer or influencer, it might be a little harder, depending on the bank requirements. You will need to provide proof of your income and a bank record of regular, verifiable payments, and a statement of income and expenses, depending on the needs of the bank/s. Your bank records must reflect your income.
#2 - Good credit record and affordability check. Your income after deductions and living expenses must show that you can afford the required home loan repayments. Building a credit score is an important prerequisite. This can be achieved through short-term credit, such as a store account, with regular payments for a few months to establish a good credit history.
#3 - Mortgage loan approval. It is best to do an affordability check and a home loan prequalification before you even start looking for a property to buy. You can either do it online as the banks and mortgage originators all have online calculators for an initial affordability assessment to find out how much you can buy for. Once you know how much you can buy for, you can start looking around at properties online and contact an agent such as Seeff who can then assist you further with the necessary offer on a suitable property, and the home finance application.
#4 - Funds for a deposit and costs. While first-time homebuyers are still able to secure 100% home loans, there are usually still transaction costs on top of this which the buyer must fund. There might also be a deposit required by the bank. These funds must be available upfront. It includes transfer duty over R1.1 million, along with transfer and bond registration costs. For example, on a R1 million property, the costs (with no transfer duty payable) would be around R33,000 for the transfer, and R38,000 for the bond registration and this must be available upfront.
#5 - Long-term commitment. Groenewald says purchasing your first home is not just a financial investment, but requires a lifelong commitment due to the significant financial investment and long-term mortgage obligations. Aside from financial stability, property also requires maintenance to ensure it keeps its value, and grows further in value. Buyers should also be mindful that it usually takes a few years before you will see some equity in the property unless you paid a big deposit. Since property is not an asset which can quickly be sold, a long-term commitment is therefore vital.
Navigating the journey of homeownership is both a strategic financial endeavour and a personal milestone, says Groenewald. As prospective buyers delve into the intricacies of credit building, affordability assessments, and long-term financial planning, they must balance immediate costs with future gains. By approaching this process with foresight and diligence, individuals can secure a stable investment and contribute positively to their personal wealth accumulation and overall economic well-being.
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Finding the perfect family home is one of the most important and exciting decisions a family can ever make. The right property can create a space in which to create lifelong memories as well as the ability to generate greater financial freedom.
According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, finding the perfect home is a balancing act between lifestyle considerations such as the house’s ability to adapt to the needs of a growing family, against financial considerations such as long-term returns and affordability.
"When searching for the perfect home, it’s important to strike a balance between heart and head. Families should choose a property that not only complements their current lifestyle but also offers the flexibility to grow and change with them over time. At the same time, buyers must remain mindful of the long-term financial implications to ensure that their investment remains sustainable and rewarding for years to come," says Goslett.
For those who are on the hunt for the perfect family home, RE/MAX of Southern Africa shares some age-old wisdom on what to look for during the house hunting process:
Location - You can change the house, but you can't change the location. Consider the schools in the area (from creche right up to high school) and think carefully about the commute to work, shopping centres, doctors, libraries, and public parks. It is also vital to find out how the area might change over the next five to ten years – is it an established or developing area and what plans are in place for development?
Future-proofing – Because it is such a sizable investment, most families purchase a home once every five to ten years. This is why it’s important to find a home that suits your future needs as well as your current ones. Consider things like:
* Will you need more bedrooms or bathrooms as your family grows?
* Will you need two separate living rooms as your children get older?
* Is there space for a flatlet in case your aging parents need to move in?
* Are there any title deed or zoning restrictions in place that could prevent you from changing or renovating as your needs change?
Read: First-time homebuyers' fears - how to overcome them
Affordability – If you are a younger buyer who’s just starting a family, you often have the advantage of time on your side. As your career progresses, your earning potential is likely to grow, making today's slightly tight budget more manageable in the future. However, it’s crucial to find the sweet spot: purchasing a home that you can realistically afford today, covering all costs like bond repayments, insurance, maintenance, and rates, while still investing in a property that can accommodate your growing family. The goal is to balance ambition with prudence — buying a home that might stretch you slightly initially but positions you for both financial growth and personal stability down the road.
Finding the perfect family home takes time, careful thought, and expert guidance. By keeping your priorities clear, thinking ahead, and leaning on the expertise of a skilled real estate agent, you’ll be well on your way to finding a home where your family can happily settle down and flourish.
“Finding the right home is easier and far less stressful when you have an expert on your side. A good agent will help you avoid costly mistakes and provide valuable support throughout the whole process,” Goslett concludes.
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