market. From there you will be in a stronger position
to access a bond to fund another residential property in future. “Furthermore, you will pay off your
bond one day and your living expenses will then be
dramatically reduced. Purchasing a home then is an
investment in you and your family’s financial future.”
Greater flexibility
Shaw says that not everyone is in a position or at the
stage of their life where they wish to acquire a home
of their own, however. The rental option remains an
alternative to those who are not in a position to purchase a home and, in the short term at least, is a less
expensive.
“If you rent you do not have to invest in deposits,
transfer duties, bond repayments and other costs that
may be associated with buying a home. In addition,
the landlord is also usually responsible for rates and
taxes, insuring the property, as well as maintenance
and repairs, costs that he or she is likely to build into
the monthly rental.”
Some people also prefer the idea that it is easier to
give notice on a lease rather than sell a home in order
to relocate. This enables them greater mobility and
makes the rental option more appealing to contract
workers or people who have relocated to a new city.
Other individuals are at a particular stage of life in
which they prefer to defer making a major financial
commitment,” says Shaw.
The importance of planning
Shaw points out that buying a home is not without its risks. “Proper planning is essential to ensure
that any hitches are kept to a minimum. Make sure,
for example, that you know about all the expenses
www.reimag.co.za
involved when purchasing a property as there are
a number of unforeseen costs such as the deposit,
transfer duties, conveyancing fees, homeowner’s insurance, life insurance, bank charges and others.”
“Do your research on the home and the suburb,”
he advises. “Have the property values in the area increased in recent years? What possible threats may
be posed to the value of the property into the future? These are questions that you should carefully
consider before purchasing any residential property.”
A first time option
Sectional title properties are very popular in Johannesburg’s northern suburbs and make up more than
a quarter of residential sales in Gauteng. In Shaw’s
view they can be sound option for first time buyers or
older individuals who have reached a stage on their
lives in which they want a more compact property.
“Many sectional title developments offer excellent
value for money and a well run townhouse complex
or apartment in a good area can provide an excellent
return on investment over the long term. The fact
that residents live together and all contribute to the
upkeep of the complex and the maintenance of facilities means that many sectional title developments
are able to offer a pleasing standard of living in an
upmarket area.”
“Purchasing a home is an important step in one’s
life and it is critical to obtain the best possible advice.
In these times it is more important than ever to make
sure that you choose an advisor with a solid reputation and an impeccable track record who will go that
extra mile for you,” concludes Shaw.
RESOURCES
Pam Golding Properties
Residential Handbook 2016/17
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