Please note that you are using an outdated version of Internet Explorer which is not compatible with some elements of the site. We strongly urge you to update to a newer version for optimal browsing experience.

4 top tips for buying a property in 2019

11 Jan 2019

If you’ve set your sights on buying the house of your dreams in 2019, you’ll be pleased to hear that current buyers’ market conditions look set to continue for at least another six months. That doesn’t mean you should just sit back and wait for the perfect opportunity to come to you, though.

Kondowe says buyers with deposits have been known to qualify for interest rates as much as 2.5% lower than those asking for 100% bonds. That can literally save you hundreds of thousands of rand over the course of a 20-year loan.

Tony Clarke, MD of the Rawson Property Group, says proactive purchasers are far more likely to make successful property investments.

Here are his tips on putting your best foot forward:

1. Plan for a deposit, even if you don’t have to

According to Rawson Finance, lenders are granting 100% loans in certain circumstance, but Clarke says smart buyers are putting down deposits this year anyway.

“Putting down a deposit - traditionally around 10% of the purchase price - helps to minimise the risk your bank is taking by granting you a loan,” he explains. “This can have a significant effect not only on their likelihood of granting you finance, but also on the interest rate they’re willing to offer you.”

Rawson Finance National Admin Hub Manager, Leonard Kondowe, confirms that buyers with deposits have been known to qualify for interest rates as much as 2.5% lower than those asking for 100% bonds. That can literally save you hundreds of thousands of rand over the course of a 20-year loan, and turn a middling investment into a real winner.

Work out how much you'll save if you have
a deposit and lower interest rate

2. Don’t forgo prequalification

Don’t be fooled into thinking that getting prequalified is only essential when it’s a sellers’ market. Competition for specific properties can be fierce at any time, particularly within popular neighbourhoods and price bands.

“A good property, for a fair price, will often attract numerous competing offers, regardless of what the broader market is doing,” says Clarke. “The last thing you want is to find that perfect home and then lose out to another buyer simply because they took the time to get prequalified, and you didn’t.”

Apart from making your offers more competitive, the prequalification process also helps define a realistic price range for your property search.

“Don’t waste time looking at homes you can’t afford,” says Clarke. “Rather put that energy into finding a property within your price range that ticks all the boxes and will support your future climb up the property ladder.”

See what home loan you could qualify for here

3. Get to know your local real estate agents

Chances are, if you’ve thought about buying property in 2019, you’ve done a bit of online research. There’s no doubt that the internet holds a wealth of information for the knowledge-hungry buyer, but Clarke says nothing can ever replace the on-the-ground knowledge of your local real estate agent.

“Buying a property is not an everyday occurrence,” says Clarke. “It’s a huge commitment, both financially and emotionally, and can seem quite overwhelming at times. Being able to talk through your hopes, your concerns and your questions with a professional who not only understands the market, but also the neighbourhood you’re buying into, is a great way to get comfortable with the process and ensure you’re making smart property decisions.”

4. Explore the market - and have fun

Getting to know the market is an essential step for any prospective buyer - how else are you going to learn to recognise a great value property when you see one? Clarke says online listings are a good place to start, but that open houses give a far more complete picture.

“Photographs never tell the full story, and visiting a bunch of show houses is half the fun of being in the market for a new home, after all. Don’t be shy to do the rounds on Sundays and explore your potential new neighbourhood. You’ll get a far better idea of what you like, hate - and what you can expect in your price range."

Take a look at what's on show this weekend

Print Print
Top Articles
Following the African Continental Free Trade Area Agreement, sales of luxury apartments and houses in Joburg’s northern heritage suburbs have shot up over the past few months.

From Hartbeespoort, Rustenburg, Potchefstroom to Bloemfontein, Parys and Nelspruit, take a look at these easy-living and well-priced retirement estate properties…

Offering a desirable lifestyle, top security and more, Silverhurst Estate in Constantia is highly sought-after with homes selling at the median price of R25m.


Your browser is out of date!

It looks like you are using an outdated version of Internet Explorer.

If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.

For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.

Please contact our Property24 Support Team for further assistance. Tel. +27 (0)861 111 724