For various reasons, an increasing number of homebuyers these days are single, and there are some special considerations for such buyers to take into account.
Davel says there are ways to buy “safe, sane and smart” starting with a thorough evaluation of their financial situation.
“A lot of the increased demand we are seeing now for smaller apartments and townhouses is from single adults, some of whom have never been married and some of whom are single parents,” says Jan Davel, MD of the RealNet estate agency group.
He says these buyers do face different challenges and have different needs to couples and families when it comes to choosing and financing a home.
The biggest concern for single homebuyers is affordability and the ongoing expenses of homeownership, especially without a spouse or significant other to share the load. “But with interest rates currently at 30-year lows and all sorts of low-priced inventory on the market, an increasing number see this as a rare and good time to get into the market.”
Davel says there are ways to buy “safe, sane and smart” starting with a thorough evaluation of their financial situation.
The first thing that single people who are serious about buying should do, he says, is apply for mortgage pre-approval. This is different from pre-qualification because a lender will not pre-approve a loan for a certain amount until it has thoroughly checked out the applicant’s credit and employment history, current earnings and other debt obligations.
Also, banks will need to be satisfied about the ability to afford monthly property taxes, municipal charges and levies as well as the mortgage instalment. Would-be buyers may also need to prove they have enough savings to cover a deposit and the transfer costs.
Consequently, he says once they have been pre-approved, they will have an exact price range for their purchase, so they don’t waste time looking at unsuitable properties, and will also have a really good negotiating tool in hand when it comes to making an offer.
In addition, he says they will feel much more confident about their ability to manage this commitment on their own going forward.
The second thing for single homebuyers to do, he advises, is to think about their lifestyle and what type of property they should buy.
“The first home you purchase will probably not be the one where you’ll live for the rest of your life, so you should not buy any more space than you actually need right now.”
He recommends, for financial peace of mind, buying for about 20% less than the amount of the pre-approval.
Flats and townhouses usually fit the bill for single buyers because they are typically more affordable than houses and require less upkeep, says Davel.
There may also be access to communal facilities such as a pool, tennis court or laundry, he adds but warns they do need to be prepared for the fact that they will also have neighbours close by, which means not much privacy, plus there is a monthly levy.
Finally, Davel says single buyers need to pick the area in which they want to buy especially carefully. “Proximity to work, school, family, and friends is extremely important to most single buyers, but their first concern should really be security.
Being a single homeowner means that there probably won’t be someone at home for much of the time, and that they may be leaving home early or coming back late more often than other homeowners, he says. “So they must make sure that they choose a low-crime neighbourhood, and a complex with excellent security provisions, even if it is a little less accessible.”
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