Buying your first property can be overwhelming. Before you sign your first property deal, your mind may be reeling with questions:
“ Is it a good investment?”“ Will the area stay nice?”“ Will I find good tenants?”“ Can I afford the loan?” or“ Will the banks even grant me a loan?!”
And you know what? It’ s completely normal to feel like this because it’ s a big decision! So, to help you in the right direction, we have compiled our top 10 tips for first-time home buyers and new property investors.
1
Small Action is
Better than no Action You will get BIG results when you continuously take the correct small steps!
• Start by educating yourself!
• View as many properties as possible before submitting an offer to purchase( OTP) because the more properties you view and the more homework you do, the better you will be able to determine if a property purchase will be good or not.
• Don’ t buy on impulse— one of the biggest mistakes new property buyers make is buying impulsively or emotionally.
2
Have Cash Reserves
Cash is king, and you need cash reserves for the transfer fees and bond registration costs when buying a property.
3
• If you do not get a 100 % bank loan, you will need cash reserves for a deposit.
• You’ ll also want some cash reserves for emergencies because it is game over if you run out of cash reserves. You can lose everything you’ ve built up- as simple as that.
• Ensure you have some cash reserves available after acquiring the property in case of emergency.
Improve your Credit Score If you want to finance a property, you need a good credit record.
• Although it is noble to have no personal debt, it is a disadvantage when you want to finance a property.
• You need credit to get credit, so start with a small credit card, overdraft, and a clothing account or two.
• Remember to check your credit score annually. The better your score, the better financing you’ ll get.
SA Real Estate Investor Magazine FEB 2022 27