Real estate group, Private property have compiled a “must know” list of factors to consider before buying a home in the country, focusing on the biggest concerns its clients currently face.
Chief amongst these was a growing concerns about the ease of securing finance to secure a purchase, said the group.
“Securing finance for a home isn’t any near as simple as it was in the old days.Banks study your financials much more carefully and go through your credit history with a fine-toothed comb.
“They have to ensure that they are lending responsibly and no longer simply pay lip service to ensure the buyer can afford the property in question, they check everything and want to know about all of your spending habits.”
With that in mind the group set out the following “best kept secrets” potential homeowners should know before settling down.
Don’t spend for at least a couple of months before buying
Don’t go on a wild spending spree using your credit card in the months preceding the application, warned the realtor.
“It doesn’t matter if you think you will be in line for a 100 percent loan – banks take a long hard look at your credit history and may reject the submission if they believe you’re stretched to the max.”
This includes cutting down on general expenses including overpaying tor insurance, excessive electricity usage, and splurging on entertainment before receiving a firm bond confirmation.
Watch out for Voetstoots and call an inspector
Just Property highlighted that it it squarely your responsibility to ensure you are making a sound investment.
“Remember the seller is generally not held responsible for latent or patent defects under the Consumer Protection Act.”
“While there have undoubtedly been times when a seller has been responsible for latent defects, attempting to get a sale overturned because the property is damaged in some way is going to end up being a long, costly exercise.”
It suggested you inspect the home thoroughly and call in the services of a home inspector if you have doubts about hidden aspects of the home.
Location, location, location
Despite it now being a well-known cliche the group emphasised that location was a vitally important factor, especially in South Africa.
“Buying a larger home in a less desirable area has its drawbacks when it comes time to sell. Location is everything and those who perhaps bought a smaller home situated in a more desirable area will make more money in the long run.”