THE money TIP
Save money and time by getting the house you can afford and not the house you think you want. Shaun Rademeyer, CEO of BetterLife Home Loans, points out that our property “wish lists” usually exceed our budget capabilities.
“It’s all too easy when you’ve seen something you really want – like a bigger garden, a chef’s kitchen or a really great home in your favourite area – to start rationalising about why you actually ‘need’ it or ‘deserve’ it and making plans to get it.
“However, such clouded judgement is very risky when it comes to property purchases, and the financial errors you could make are likely to last a lot longer. The home you thought you liked so much could end up becoming a heavy burden on your finances and your quality of life for the next five, 10 or 20 years.”
To make sure you can afford your home, get preapproved finance first. This will ensure that you house hunt within your budget and will be a plus for any estate agent looking to land a quick sale.