How to find a home that fits your budget, needs and lifestyle

ARTICLE BY PROPERTY 24

Whether or not you’re a first-time home buyer, searching for a new property can be daunting; not only is there a great deal of financial and emotional pressure riding on getting the purchase right, you’re faced with myriad choices in every aspect, from the location to the type of property and all the feature possibilities.

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“When you buy a home, you’re not only making a major financial investment, you’re also choosing the place that will be your personal haven for years to come, where you’ll raise your family, make memories, celebrate milestones and relax after a long day’s work.

“All of these factors have to be taken into account when searching for the right property to call home and it can be overwhelming,” says Claude McKirby, Co-Principal of Lew Geffen Sotheby’s International Realty in Cape Town’s Southern Suburbs and False Bay.

“So, in order to successfully identify the right property and have confidence in your choice, it’s essential to understand what is financially feasible both in the short and the long term and to clarify what you really want and need from a property.”

McKirby offers the following guidelines for choosing the right property for you and your family:

Define your priorities and budget

Before you start browsing online or attending show houses, it’s essential to have a clear understanding of what you’re looking for in a home and what you can afford to buy. Start by making a list of your must-haves and nice-to-haves. Consider factors like the number of bedrooms and bathrooms, the size of the yard, proximity to work or schools, and any specific features like a garage, pool, or open floor plan.

Equally important is setting a realistic budget. Take a close look at your finances and determine how much you can afford, considering not just the purchase price but also property taxes, insurance, maintenance, and utilities. And don’t neglect to factor in potential interest rate hikes which will affect your budget and affordability down the line. Pre-approval for a mortgage can help you establish a clear price range and show sellers that you’re a serious buyer.

Research neighbourhoods

The location of your home is as important as the home itself so if you aren’t 100% sure where you’d like to buy, spend time researching different neighbourhoods to find one that best suits your lifestyle and needs. Consider factors such as safety, the quality of local schools, the proximity to work, public transportation, amenities like parks and shopping, and the overall atmosphere of the community.

Visiting the suburbs at different times of day and on weekends can give you a better sense of what living there might be like and talk to residents, if possible, to get insider knowledge about the area. Remember, you can always renovate a home, but you can’t change its location.

Work with an experienced estate agent

A knowledgeable real agent can be an invaluable resource in your home search as they can provide insights into the local market, identify properties that meet your criteria, and help you navigate the buying process, including negotiations and paperwork.

When choosing an agent, look for someone with experience in the area you’re interested in and one who understands your needs. A good agent will listen to your preferences, offer advice, and ensure that you don’t miss out on potential opportunities. They can also alert you to new listings before they hit the general market.

Leverage online tools and resources

In today’s digital age, there are countless online tools available to help you search for a home. Websites like Property24 allow you to browse listings, filter by your criteria, and even see virtual tours of properties.

Use these tools to stay updated on new listings, compare prices, and get a sense of the market in your desired areas. Many of these platforms also offer insights into price trends and neighbourhood statistics, which can be crucial in making an informed decision.

Attend open houses and private showings

Once you’ve identified potential homes online, the next step is to visit them in person. Attending open houses and scheduling private showings will give you a better sense of the space, layout, and condition of the property.

During your visit, take note of things that might not be apparent in photos, such as the amount of natural light, the state of the appliances, or the condition of the roof and windows. Don’t hesitate to ask questions about the property’s history, any recent renovations, and any potential issues.

Pay another visit to the properties on your final short list for a more thorough inspection - open taps to check water pressure, flush toilets ask questions about the pool, roof etc.

Don’t rule out properties too quickly

Keep an open mind and view a variety of properties at the start of your search journey to help you draft your wish list. Once you understand what’s available within your budget, it will be easier to hone your wish list and identify the compromises you can accept, and those that are deal breakers.

It’s quite common for buyers to think certain characteristics are really important, only for their order of priority to change as they view the various options.

Be prepared to compromise

If you don’t keep an open mind, you risk tunnel vision, and that will make it that much harder to find a property. Rather think about the things that can be changed in the properties you view versus those that can’t. For instance, internal layouts can usually be reconfigured, but if a property is situated on a main road, or too far from the school, that may be a genuine red line.

And remember, regardless of whether you’re spending R2m or R10m, the word ‘compromise’ will feature in every property search.

Focus on the big picture

It’s very easy to be seduced by a property that has one stand-out feature that’s high on your wish list, whether it be a large sunny kitchen, generous landscaped garden or a walk-in wardrobe, but if you put too much focus on this feature, and try to force an unsuitable property to meet your needs, then you may well live to regret it.

Let common sense prevail and, instead, consider whether this feature is something you could create in another property that suits your needs better.

Be ready to act quickly

The market can move fast, especially in desirable areas so when you find a home that suits your needs and falls within your budget, be prepared to make an offer quickly. This is where having a pre-approval for a bond, all the relevant documentation and a well-prepared real estate agent can give you an advantage.

READ | Looking for a home that ticks all your boxes? Try Property24 Alerts

Adrian Goslett, Regional Owner and CEO for RE/MAX of Southern Africa, shares 3 tips on how to prepare for pre-approval for a bond:

1. Don’t allow your credit score to drop

Do whatever you can to ensure that all debt repayments are made on time and in full every month. Remember that the worse your credit score, the lower your chances of bond approval and the higher the interest rate the bank will provide on the loan.

2. Don’t take on additional debts

As tight as your household budget may be, try and avoid purchasing anything on credit at this time. If possible, try to pay off as many debts as possible to increase your affordability levels. Disposable income is a key element to bond approval and acquiring a higher home loan amount.

3. Build up a stable employment history

For those who plan on purchasing a property within the next year, it is important to know that financial institutions require a stable employment history of around 6-12 months. If you happen to be retrenched or decide to change jobs, your loan application might not be approved until you’ve been employed for a long enough period of time. If you can avoid it, try not to change jobs just before applying for a home loan. Rather wait until enough time passes before submitting a home loan application.  

Read: First-time homebuyers' fears - how to overcome them

Trust your instincts

Finally, trust your instincts. While it’s essential to be practical and thorough in your search, your home is also a place where you’ll create memories and spend a significant portion of your time so if a home ‘feels right’ and meets your key needs, it might be the perfect fit.

“Finding the right property takes time and patience and drawing a blank when house hunting can be very frustrating,” says McKirby, “however, extending the scope of your search as much as possible at the beginning will help you to better understand your options and later, to efficiently narrow the list down.

“You’ll get much more traction with agents, too, once it’s clear to them you have done your homework and have a good idea what you want, that you are realistic about your options and you’re ready to proceed when the right property comes up.”

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