Entering the property market with limited funds is possible with the right strategy. According to Quay1 International Realty smart investing starts with research, planning, and leveraging available financial tools. Even with limited capital, strategic choices can help first-time investors enter the property market successfully.
READ: 5 things to consider before buying your first home
Leverage Low-Deposit Loan Options – Look for government-backed schemes, low-deposit loans, or guarantor loans that reduce upfront costs.
Consider Fractional Property Investing – Platforms allow you to invest in a portion of a property, reducing capital requirements.
Start with Reinvesting – Consider living in a more affordable area while investing in a high-growth location.
Explore Joint Ventures – Partnering with family, friends, or investors can help share costs and risks.
Look for Off-the-Plan or Under-Market Value Properties – These can require lower deposits and provide the potential for value appreciation before settlement.
House Hacking – Buy a multi-unit property or rent out spare rooms to offset mortgage
Use Equity from Another Property – If you already own property, using its equity can fund your investment.
Research Government Grants & Incentives – Some regions offer first-home buyer or investor grants to reduce entry barriers.
SEE | Property24 101 - Buyer and Seller specific advice
RE/MAX of Southern Africa runs us through the A-Z of property transactions: Read full article here: Exploring property transactions: an A-Z guide
Asking Price:
The price set for the home, usually suggested by a real estate professional based on a competitive market analysis and agreed to by the seller. Depending on demand, buyers can choose to make offers above or below the asking price.
Bond Originator:
A free service that can help buyers find the best deal on their home loan. Bond originators have several services that will help buyers navigate the bond application process more efficiently.
Conveyancer (also known as a transferring attorney):
A legal professional who will attend to all the paperwork and other legalities that are required for a property transfer to take place.
Deposit:
An amount of upfront cash provided to the buyer upon acceptance of an offer to purchase. The rule of thumb here is roughly 10% of the asking price. A deposit is not a legal requirement but can make a buyer’s offer more appealing and could help the buyer acquire the remaining home finance.
General Valuation Roll:
A document that presents a value upon which household municipal rates will be calculated until a new roll is issued. It is important to check this when it is released to make sure you do not end up paying more for municipal rates than what the home is truly worth.
House Price Appreciation:
A percentage of growth calculated based on average house prices in an area (usually calculated at a national level). These averages can provide an indication of how much more a property will cost in a year’s time. For landlords and tenants, these averages can provide an indication of what a fair annual rental escalation could be.
Interest Rates:
There are various rates at which interest is calculated on debts, including home loans. Consumers should focus on the Prime lending rate, as this is the base rate that banks use when offering loans to consumers. This will either be above or below Prime depending on how good your credit score is.
Off market sale:
When a property is for sale, but it has not yet been publicly advertised or listed on any property portals.
Pre-approval:
A certificate issued by a bank that provides a buyer pre-approval of a certain loan amount, calculated based on what a buyer can afford. These amounts are only 100% finalised after the bank has completed a property valuation and has received a signed Offer to Purchase on a property.
Reserve Price:
The minimum price set for a home when it is sold via auction.
Sole Mandate:
A written agreement that places the responsibility on a single agent for a period of time. It is often far more effective to sign a sole mandate and allow one agent the space to secure the best sale. A sole mandate is also a more convenient option because sellers will only have to liaise and deal with one agent rather than several.
Turn-key property:
A property that is move-in-ready, with no need to do any further renovations or updates.
Unconditional offer:
An offer to purchase that is not subject to any other conditions, such as a home loan or private home inspection, etc.
Zoning: the type of property that can be built on a plot of land. Local planning authorities control zoning permissions.
“There are a lot of moving parts to any property transaction. That is why the real estate profession exists. Property professionals are there to help guide clients through these transactions. Never feel afraid to ask questions if you are ever unsure of anything during the process,” says Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.
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