Owning a home is a significant milestone in anyone's life but for women especially, it provides many benefits in addition to long-term financial advantages, and in Women’s Month, it’s a good idea to review some of the most important ones, says Berry Everitt, CEO of the Chas Everitt International property group.
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“Firstly, owning a home offers a level of stability that renting just cannot match. Homeowners are free of the uncertainty of lease renewals and rent increases and this security of tenure is particularly beneficial for women who need a safe environment in which to raise children and create a long-term home.”
Secondly, he says, one of the most fulfilling aspects of homeownership is the ability to personalise and modify your living space as you wish. Owners are free to make any additions such as an extra bedroom or improvements such as the installation of solar power that enhance their quality of life. This control over one’s environment fosters a sense of pride and satisfaction.
“Third, homeownership often leads to a greater sense of community and belonging. Homeowners are more likely to invest time and resources into the areas where they live and thus foster stronger social ties and a supportive community environment. This sense of belonging definitely enhances one’s quality of life and can provide a valuable support network.”
Everitt says further advantages of homeownership include:
*A way to close the wealth gap. “Historically, women have faced systemic barriers to building wealth, including lower wages and fewer investment opportunities. Buying property and becoming a homeowner is a great way for women to close this gender wealth gap and achieve parity in wealth accumulation.”
*Legacy. For women with families, he notes, owning a home is a great way to create a legacy. It provides a tangible asset that can be passed down to future generations, offering them long-term security and stability. This legacy can be a critical foundation for children and grandchildren, providing them with a solid start in life.
*Independence. “Becoming a homeowner is a powerful step towards financial independence. It enables women to build up equity in a property that can serve as a welcome safety net in times of financial uncertainty. Unlike renting, where monthly payments contribute to a landlord’s wealth, regular bond repayments increase the owner’s net worth while also improving her credit record.”
*Personal wealth. Everitt says real estate is one of the most reliable, low risk - and tax free - forms of investment. Homes typically increase in value over time, and this appreciation, plus the equity built up as a bond is paid off, can be leveraged for future financial needs, such as funding education, starting a business, or planning for retirement. Homeownership is thus an excellent way for women to start building up personal wealth and empowering themselves to achieve their goals and secure their futures.
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To ease your transition into property ownership and help you make what is probably your biggest investment to date, Tyson Properties has 10 tips:
Find your neighbourhood: Before setting your heart on a particular street or neighbourhood, do your research. Find out the average prices and the potential re-saleability of a property. If you spot lots of ‘For Sale’ signs, find out why so many people are leaving. Convenience is also key, so check where you can do your shopping, how close a suburb is to your place of work as well as key facilities like doctors, schools and restaurants. Find out about security in the area. Chat to those already living there who will fill you in on the pros and cons when it comes to everything from noise to traffic congestion.
Be prepared: Save up for a deposit. This is the best way to secure a bond at a good rate. The more money you put in at the beginning, the less you will owe and the more inclined a bank will be to sign you up. Better still, get prequalified for mortgage finance. That way, you’ll know how much you have to spend.
Calculate affordability: The amount of credit a bank will give you depends on how much you earn, your expenses and the leftover disposable income you have to service your debt. Balance your lifestyle needs with your income so that you do not become “house poor” and have to sit at home whilst friends are out having fun. The credit check and affordability assessment your bank will require when you apply for finance will be a useful safety net and provide a reasonable idea of what you can afford. Confine your searches to properties in the recommended price range to avoid disappointment.
Click here to check your home loan affordability
Stick with the professionals: It is always good to get advice from friends and family, but also remember that there are plenty of professionals to guide you on your buying journey.
Understand the cost of living: Apart from upfront costs such as transfer fees, find out what other expenses you are likely to encounter prior to move in – an internet connection, home security, renovations and repairs. Then look at your potential monthly costs factoring in levies, garden services, rates and insurance.
Shop around: Take time to educate yourself about what’s available. Don’t buy in haste, without considering the alternatives. When you have a sense of what’s out there and the prices, you’ll be able to make better decisions as an informed buyer.
Spot potential problems: Be aware of hidden defects and check for things that are not working properly - from faulty wiring to water leaks or even subsiding walls. If you want to make an offer, bring in a specialist to inspect plumbing, electrics and structure, with particular attention to the roof. If you uncover something, it doesn’t necessarily mean you won’t buy the property, but it puts you in a position to negotiate on the price.
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Time it right: Know the difference between occupation and possession. It is not your house until the transfer is registered at the deeds office. If you are renting, make sure that you know the notice period so that you do not find yourself paying both your first bond repayment and final rental at the same time. Check the requirements for occupational rental with your agent should you need to move in ahead of transfer and, remember, if you spend money on alterations before this happens, you could lose it if the transfer doesn’t go through.
Read the rules: If you are moving into a housing estate, chances are there are plenty of rules and regulations that will impact on your lifestyle. Many complexes have restrictions on pets, so find out if you can accommodate your pooch ahead of time rather than finding he is not welcome after you have purchased. Parking, gardening and even decorating rules need to be checked ahead of time.
Plan ahead: If you are buying a property off-plan, don’t rely on artist impressions and brochures but rather make sure that you have the full details in terms of the square-meterage of each room. If you are buying an older home, insist on a valid set of building plans that are approved by the municipality. Even if your bank doesn’t demand approved plans, you might need these for insurance claims, if you wish to add on to your property in the future and for future buyers when you are ready to sell. Redrawing them can be expensive.
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