Real Estate Investor Magazine South Africa August 2018 | Page 29

FINANCE
goes about running all the necessary
checks, including their credit record
and what they could possibly afford. By
knowing exactly what you can afford be-
fore beginning your search you not only
remove the risk of falling in love with a
house you can’t afford but also improves
the chance your agent can find you one
you will like in your price range.
4. Budget Before You Buy
As simple as this may sound it can truly
save you in the long run. When thinking
of buying a home take an honest look at
your finances. Replace your monthly rent
with the potential bond repayments, as
well as costs like house insurance, rates
and taxes, levies and property mainte-
nance. All these costs add up and could
put a strain on your monthly income.
Budgeting for other costs like the
bond registration fee and transfer costs
can also spiral out of control. Use some-
thing like Avid Firefly, an application
that works out the possible costs involved
in the purchase of your home. There are
also plenty of personal budget apps out
there, like Mobile2Budget, which make
controlling your finances so much sim-
pler. Try one out for a few months to see
exactly where your money is being spent!
5. Working Hard For Your
Money
Getting a home loan is a difficult busi-
ness and can be made even more difficult
depending on how you’re employed. A
full-time employee with a constant pay-
cheque is a far more attractive prospect
for any lending agent than someone who
is self-employed or commission-based. If
you are self-employed or work for com-
mission contact a home loan consultant
before you consider buying. There might
be some serious red-tape you need to get
around and the last thing you want to do
is lose out on your dream home because
of delays with your bond approval.
6. Shop ‘Till You Drop
Once you know where you stand finan-
cially, the fun part begins. Use absolutely
every means at your disposal to find the
right property for you – and don’t be
afraid to keep asking for more viewings.
Get online with Property24, Private
Property and even Gumtree to supple-
ment any properties your estate agent
might be showing you.
This isn’t an exclusive relationship! If
you can find a private sale you could save
yourself thousands of Rands in commis-
sion costs. Then ask your attorney to pre-
pare an offer to purchase to present for
the seller. Also, don’t be afraid to shop
around for the best bond amount and
interest rate. Your bank might not offer
you the best deal, and there’s no harm in
asking around.
7. Get Your Grant
Not many of us know this but there is
in fact a government grant for first time
home buyers. If you earn a collective
household salary of between R3501 and
R15000 a month you could qualify for
the FLISP grant. This grant was put in
place to help bridge the gap between free
housing and those who need just a little
help in owning their own property.
The problem with the FLISP subsi-
dy is so few people know about it. We
quickly realised this and wanted to help
people understand what it is and how
to get it. If anyone is interested in the
FLISP subsidy, please contact us on our
website www.flisp.co.za.
8. Expert Opinions
Like the FLISP grant, there are many
other property related things very few
of us actually know about. This is where
getting yourself a property attorney or
conveyancer to scrutinize every part of
the purchase process could become in-
valuable. The “Offer to Purchase” you
sign is a legally binding document, usu-
ally with penalties that you need to un-
derstand fully.
By having your own representation
on your side could really save you from
some nasty surprises. Do not rely on the
estate agent to guide you alone – he or
she may be acting only in the interest of
the seller, or their own commission.
9. Inspector Gadget
One of the most important parts of buy-
ing a home is having it inspected. Buying
something “voetstoots”, or “as it stands”,
is not only dangerous but could end up
costing you in the long run. Don’t be
afraid to insist on a full home inspection
to go along with the mandatory checks.
Spotting something like a structural
problem, dry rot or a pest infestation
before you purchase means you have the
chance to