Weekend Argus (Saturday Edition)
Experts give advice to buyers
OVER the past few months, aspiring property buyers have been advised “now is the best time to buy”, but while market conditions are in their favour, such a move should not be done in haste.
“My advice is not to rush out and buy the first home you see, but to rather spend some time researching the market before taking the plunge,” says Tyson Properties’ Jonathan Davies.
“Right now there are many homes on the market and buyers can afford to take their time before committing. As with all good property decisions, do your research.”
He says buyers should also view as many properties as possible to establish comparative value.
“I have seen many buyers purchase homes only to be disappointed when they realise they may have overpaid. Doing your price research will stand you in a better position to make the right decision. Consider area too. Look at areas that remain popular and have seen recent growth in values. You want to purchase in suburbs that offer good future development and growth.”
While buying property need not be overly complicated or stressful, it is not as simple as just saving for a deposit and choosing your dream house, says Jill Lloyd, southern suburbs agent for Lew Geffen Sotheby’s International Realty. For investors, particularly, the dream “can become a nightmare if they do not have their ducks in a row and a thorough understanding of the process”.
Obtaining bond pre-approval is recommended as this not only provides prospective buyers with the peace of mind that their credit record is in good standing, but also gives them a clear indication of how much they can afford to spend and the type of bond deal they can expect.
“It gets the application process started, which means the transaction can be more swiftly concluded once buyers have found the home they want.”
Lloyd says first-time buyers should also be aware of the costs over and above the price of the property.
“Some are upfront, out-of-pocket costs that are non-refundable even if the deal does not go through. Other costs will only hit your pocket once the sale is concluded, and it is essential these are all factored into your budget.”
For aspiring buyers who are still renting, Pam Golding Properties area principals for Durban Coastal, Carol Reynolds and Gareth Bailey, say they should do their best to enter the market as quickly as possible, bearing in mind affordability.
This decision is a forced saving as most people won’t save the difference between a cheaper rent and a bond so, at the very least, a property purchased using a bond is compulsory saving over time.
Reynolds says: “Ideally, look to buy the ‘worst’ house in the best possible area, while keeping within your budget. For example, I would recommend a smaller apartment in a slightly better area than a spacious apartment in a less desirable area.”