If you’re a home buyer who has pre-qualified for a bond, spent weeks visiting show houses, read a truckload of good advice about where, when and how to purchase property - and still can’t bring yourself to sign an offer, you may have what agents call “buyer’s block”.
"Take the time to find out what is causing the conflict between wanting to buy and being unable to make a decision. The main reason is usually money – or rather a concern about being able to stick to such a big financial commitment," says Botha.And, says Rudi Botha, CEO of BetterBond, SA’s biggest bond originator, this feeling is not something you should ignore if you want a happy ending to your home search story.
“Instead, take the time to find out what is causing the conflict between wanting to buy and being unable to make a decision. The main reason is usually money – or rather a concern about being able to stick to such a big financial commitment – but there are fortunately several constructive ways to address this concern so that you can move forward.”
He says you could start, for example, by checking out less expensive homes - perhaps smaller than you initially envisaged - or located in a cheaper area. “Property portals and estate agency websites make this very easy to do, and you can’t really go wrong with buying for less than the maximum that you can actually afford.
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“This will create a financial buffer and give you more peace of mind about possible interest rate increases in future as well as the rising costs of homeownership and maintenance. You may also find that you are able to pay an additional amount into your bond account each month and pay off your home faster than expected.”
Alternatively, says Botha, if you’re planning this purchase primarily because you intend to start or expand a family, you may need to think hard about your ability to accomplish two big financial goals at the same time. "It is hard to cope with a new bond and mushrooming family expenses all at once - and constantly having to worry about cash flow is sure to take the glow off homeownership.
“So once again you may need to set your sights on a less expensive home while you work on eliminating other debts, boosting your savings and improving your overall financial position so that you can sleep soundly.”
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And finally, he notes, if what you’re worried about is whether buying property will be a good “investment”, you should make sure there is sufficient provision in your budget for regular home maintenance and choose a tidy, secure area where the other homes are also well-kept. There is always demand in such areas and property prices tend to rise steadily as a result.
Botha says that once you have worked through your financial concerns, you need to take a firm decision about how much you are willing to pay, pinpoint a few suitable areas, make a list of the home features you regard as absolutely essential and then start actively looking for homes that match these criteria.
“Most importantly, you also need to give yourself a time limit in which to conclude your home search and make an offer. Although there are many homes to choose from in the current market, you should not be afraid of ‘missing out’ on a great bargain that might come on to the market next week, next month or next year.
“You should be much more worried about delaying the chance to finalise a purchase and start adding to your personal wealth, especially if you are a first-time buyer and still paying rent.”
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