Home prices are rising and there is a shortage of stock now in many areas - but that doesn’t mean you should get panicked into buying a home that isn’t right for your lifestyle or comfortable for your family.
As in many other situations, says Gerhard Kotzé, MD of the RealNet estate agency group, the key to making good decisions is preparation, which in this case means doing some work to formulate a very clear idea of what you want.
“So before you even start looking at homes for sale, you need to set time aside to discuss and compile a wish-list of everything you would like your new home to have, and then whittle it down to features that are absolutely essential, and perhaps a few more that would enhance your lifestyle if they were included at a price that matched your budget.
“In addition, you need to decide what type and size of property you would like, what you can comfortably afford to pay for your new home, and where you would like to live. This will help you to focus and make your home search much less stressful,” says Kotzé.
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To make your list you need to answer at least the following questions:
1. Would you prefer an older area or a newer one?
Chris Cilliers, CEO of Lew Geffen Sotheby’s International Realty in the Winelands says regardless of which option you choose, the better informed you are the easier it is to avoid potential pitfalls and minimise the risks so you always need to do your homework before signing an offer to purchase."
SEE: To buy off plan or an existing home, which is better?
2. Do you like dense, mixed-use communities with lots of activity, or would you prefer a secluded location with lots of privacy?
Seeff Property Group Chairman, Samuel Seeff, says security and a better quality of life, especially since the onset of the pandemic, are key drivers of the shift.
Lightstone data also demonstrates the shift. While freehold estates comprise just over 6% of all freehold housing stock, they accounted for 20% of all units and 32% of the total value transacted for freehold property in the 2021-year. This is notably up on 2020 (18* Would you like to live in a secure complex or estate, or would you rather have a freehold home in a traditional suburb? Or maybe even a home in the countryside?
READ: Freehold vs Estate Living | Locals in search of security and a better quality of life
3. Do you need to be within walking distance of schools and shops and sporting facilities?
Buyers need to remember that when they are purchasing a home, they are not only purchasing the specific erf and the property itself, they are also investing in the neighbourhood.
Buying a home in a suburb that is deteriorating or that has increasing criminal activity can be a costly mistake and significantly diminish the return on investment. Look for signs such as boarded-up properties and a high number of vacant homes or shops in the area.
SEE: Dream home or nightmare investment? Handy checklist when buying a fixer-upper
4. Do you need to be on a bus route or close to other public transport?
To some people, buying a ‘fixer-upper’ seems like a dream proposition and for others, it’s the only option their budgets will allow, however, even though older homes often have great character features that most new homes don’t have, they can also be the stuff of nightmares if buyers aren’t careful, says Claude McKirby, Co-Principal for Lew Geffen Sotheby’s International Realty in Cape Town’s Southern Suburbs and False Bay.
5. How much time do you have to spend on home maintenance and gardening?
Regular home maintenance keeps your home neat and your appliances running longer, and is also the key when it comes to selling your property.
6. What sort of living space would suit you - open-plan or traditional?
READ: Top design trends currently dominating SA's property market
7. Do you need a separate home office or study?
8. Do you need a garage or a storeroom?
- Have you been pre-qualified for a home loan so that you know what your buying power is?
SEE: Make 2022 your year to become a homeowner! How banks assess your loan application
- Have you estimated how much you can afford for insurance, municipal rates, maintenance and levies in addition to your monthly bond repayment?
- Have you worked out a monthly budget to ensure that you buy a home that will remain affordable, allowing some room for possible interest rate increases in future?
Calculate how much a lower interest rate can save you here.
Finally
“Once you have gone through this exercise, you will be well-equipped to start searching online and selecting homes to view, and if you stick to your list, you won’t be distracted by features that may be attractive but are non-essentials for you, and you won’t be tempted to make any hasty decisions based solely on price,”says Kotzé.
You will also be able to give estate agents in your preferred areas a very definite and clear description of what your requirements are so that they can assist you in your home search and “match” you to any suitable properties that they have listed.
“However, in the current market, you do also need to be motivated to buy. Hunting for the right home does of course take some time and you should not leap into a purchase until you have looked at several properties in your preferred area and price bracket.
“But you should also not hesitate to commit to a property that does fit your carefully considered criteria. It is unlikely at this stage, when there is a shortage of homes for sale in many areas, that something better will come along next week or next month. In fact, it is more likely that you will end up having less choice and having to pay more for a home that suits you.”
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