FINANCE
calculator to see what home you qualify for . Your affordability is determined by subtracting your monthly expenses from your monthly income .
It ’ s quite common for property investors to spend hours researching market demand and property prices without considering their own affordability . Dyer poses the all-important question : ‘ You may be able to purchase a property to create generational , but should you not be able to find a reliable tenant , will you still be able to cover the monthly loan repayments ?’ repayments should not account for more than 30 % of your monthly salary , as a rule . One also needs to factor in upfront costs such as bond registration fees and transfer duties in the homebuying process .”
3
Pre-Qualification gives you power
Once you have completed steps 1 and 2 , you will receive a prequalification certificate , valid for 90
Dyer notes a rising trend in property investment as a tool to create generational wealth . Generational wealth refers to assets that can be passed down from one generation to the next . Properties are purchased with a long-term investment view and are often tenanted out as a buyto-let investment to help generate passive income , which adds to the wealth accumulated over the years .
Many people are looking to climb the property ladder , Dyer urges potential homebuyers to avoid knee-jerk reactions . “ Home loan
67 JUNE / JULY 2023 SA Real Estate Investor Magazine