Will you buy property in 2015? Property24 ran a home buyer survey in the first few weeks of January to get a gauge of how optimistic people are really feeling when it comes to buying property this year. And the response tells us that at least a good portion of readers have their sights well set on owning their own home.
Of those who responded to the survey, 79% said they were optimistic and planning to buy a home in 2015. 10% said they were having difficulty qualifying for a home loan while 8% responded that they can't quite afford it now and would rather rent. Only 3% noted other factors as obstacles.
Despite sluggish economic growth, there is still positive news for would-be home buyers. For starters, petrol is cheaper and the best place to put that spare cash is in your 'house fund'.
The prime interest rate is still low at 9.25% and is not expected to change when the SA Reserve Bank holds its Monetary Policy Committee meeting on Thursday, so you can still get onto the property ladder in a favourable interest rate cycle.
According to FNB Home Loans Household and Property Sector Strategist, John Loos, as things currently stand, the interest rate forecast risks lie to the “downside” and the probability of further rate hiking being postponed by the SA Reserve Bank to a later date is now quite high.
So if you're dreaming of a new home & life in 2015, here's a home buying checklist to get you started...
1. Dare to dream. Take some quiet time and sit down with a pen and notebook , your iPad or other favourite device. Title it 'My new life & home' and write down exactly what you want. What kind of life do you want to live? Are you a city slicker or do you crave peace and quiet in the suburbs? Before you buy a property, you need to be sure you're in the right place, and now may just be the time to revamp your life.
2. Have an
eye on the future. If you're young and buying an apartment, consider that
one day you may get married and have children. The apartment you choose could become
a valuable investment property that earns rental income down the line - or if you've
chosen your area well, you may see the value appreciate significantly by the
time you are ready to sell.
3. Make a final
checklist. Once you're clear on what direction you want to head in, you can
tackle the exciting prospect of looking for a home. Now you can finalise your 'house hunting
checklist'. This will be useful to send to agents when you start searching and
to take along with you when you view properties. It's easy to be overcome by excitement and
fall in love with a place, but your checklist will ensure you make the right
decision in the end.
4. Commit to a financial fitness plan. If you haven't already saved up a deposit, start your property buying journey by reading 10 easy ways to save for a home deposit. Most banks require a deposit of 10% to 15% of the purchase price, and you are more likely to qualify for a home loan if you have a sizeable deposit.
5. Get a home loan prequalification. When you are financially and psychologically ready to start the property search, it is wise to approach your bank or a bond originator to get an idea of what loan amount you will actually qualify for. This way you can go 'shopping' with peace of mind, knowing what you can afford to buy.
6. Understand the extra costs. Calculate the bond and transfer costs before you start your search. If you buy a home over R600 000, you will have to pay transfer duty to SARS and this can add significantly to the final figure. Knowing the costs upfront will help you avoid unpleasant surprises later on.
7. Research the area. Have a shortlist of areas you want to buy in. What is the crime like? Check the sold prices of properties in those areas to understand what similar homes or flats have recently sold for. This way you will know what a fair market-related price is when the time comes to make an offer. You will also understand the property price trends and ensure you invest wisely.
8. Let the house hunt begin. Start window shopping for property and sign up for property alerts by registering a profile on Property24.com. Try the Property24 App for smartphones which makes it easy to browse properties for sale, save your 'favourites' and use a map search to figure out where they are. It's always fun to start looking, but after a while it can get exhausting to keep sifting through the multitude of listings. Be organised and let the alerts tell you when something new has been listed in the areas and price range you are looking in. Get show day notifications and plan your Sunday viewing. Find a good agent and give them your checklist, this way you will avoid wasting time viewing homes that won't suit you.
9. Make it fun! This can be a wonderful process to create the life you really want, so don't rush it. Consider all your options and keep an open mind - you may even find something that suits you perfectly, which is totally unexpected.
Enjoy the house hunting journey, dream a lot and good luck
with your property search! - Julia Hinton
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