Moving from renting to buying

Private Property South Africa
Press

If you’ve been renting for a while and are ready to take the next step to buying your own home, you need to do your homework and know exactly what you are getting yourself into.

Dr Simphiwe Madikizela, Head of Special Projects at FNB Housing Finance says, many first time buyers usually get blinded by the excitement of owning their own home and overlook the importance of research, which ends up costing them more in the long-term.

Apart from the home loan application and registration process, there are a number of other important factors that one needs to consider when owning a home:

Future needs

Avoid basing the decision of buying your house only on your current needs, rather take a long-term view and consider if the house will still cater for your family’s needs in the future. For example, a two bedroom house may be perfect for newlyweds, but could soon be too small as the family expands.

Amenities

While you may get a bargain when buying a spacious house outside of town, you need to consider factors such as your work premises, medical centres and schools for your children etc. It may end up costing you more money and time to travel on a daily basis.

Free-standing or Sectional Title

When renting, you don’t often put as much time and money on maintaining the property, depending on the agreement with your landlord. When you own the property, you will be responsible for making sure that the property stays in good condition at all times.

On the other hand, when buying a townhouse, you will be liable for a monthly fixed cost for levies, rates and taxes, over and above the mortgage loan instalment due to the bank.

Buying an old house

Buying an old house for a reasonable amount in a good neighbourhood may not be such a bad idea; however what many buyers often underestimate, is the cost of fixing up the house. Furthermore, without professional inspection, there may be other hidden defects that you would only discover once you move in.

Neighbourhood safety

While no area is immune from crime, it is essential for first time owners to research crime statistics in the area before buying. For example, if you have a job that requires you to travel a lot, leaving the house unguarded, you could easily become a victim of crime.

“Lastly, always save for rainy days, as life is unpredictable. When moving from renting to buying, it is advisable to save at least six months of your home loan and monthly expenses even if your job is not under threat. This will create a good safety net and give you a peace of mind should anything go wrong,” concludes Madikizela.

Share:

Found this content useful?

Get the best of Private Property's latest news and advice delivered straight to your inbox each week

Related Articles

My family thinks it’s a mistake to buy a house
Most home buyers second guess their decision at some point, but those misgivings can be made worse if their family doesn’t support the decision.
Property Buyer Show 2017 | Tyto Group Investments
Tyto Group Investments chats about the benefits of buying into a gated community.
What is important for a first time home buyer?
Getting on the property ladder can be daunting experience, especially for a first time home buyer. Here's a step by step guide to make the process a little easier.
;