Planning your property goals for the new year
Category Property Advice
It's hard to believe that a new year is already around the corner! For many people - if you're finishing university this year and entering the job market for example - it's time to think about how you will use next year to reach your property goals. Depending on your lifestyle and stage of life, you're likely to have one of three property goals.
- Find your first home to rent
- Find a great starter home to buy
- Find a bigger home for your growing family
No matter what stage of life you're at, the CSi Property Group has all the insights and advice that you'll need to make the best possible decisions.
Strategies for people looking for their first rental home
The first step for anyone looking to rent their first home to consider is their budget. As a rule of thumb, your rent should cost no more than 30% of your salary - and many landlords will not allow you to rent their home if you don't earn at least three times the rental amount. A related factor to consider is the rental deposit: landlords will nearly always require a deposit, which could amount to one or two month's rent. By law, this money needs to be kept in an interest-bearing account and paid back to you - together with any interest earned - when you move out, provided that you haven't done any damage to the property.
Here are other factors to consider when looking for a rental home: is the location convenient? Does your prospective home offer all the amenities and features that you would like it to? Is the property in a good condition? Does it have the storage you need? These are all questions that will help you decide whether or not a property is right for you.
Things to know when you're looking to buy a starter home
When it comes to buying your first property, the first step is to know what you can afford. By approaching a bond originator like End User Finance, you can immediately get a clear idea of what you can and can't afford. The End User Finance team can also get you preapproved for a home loan, which gives you confidence when you're looking at prospective homes and helps you to avoid unnecessary disappointment.
Choosing a home to buy means thinking with a longer-term perspective than when you're choosing a rental home. A one or two-bedroom home may be ideal for right now, but buying a home is typically at least a ten-year commitment. Think about how your life will change in the next five to ten years. Will you start a family in that time? Is there a possibility that an elderly parent will need to come and live with you? Do you plan to start a business or get a work-from-home job? The answers to these questions will help you establish whether the home you're interested in buying will meet your long-term needs.
Tips for finding a bigger home for your family
First things first: A bigger home typically means higher bond payments, property taxes and insurance. You'll also need to budget for higher utility and maintenance costs if you're a homeowner. Being able to afford a larger home may mean moving further out of a city centre than where you are accustomed to living. Be sure to factor additional commute time and access to amenities (especially schools, medical facilities and shopping centres) into your decision to upscale.
Take the time to look at a few different properties to establish what you can afford in your price range. If you have the opportunity, revisit top choices to assess each property thoroughly. However, it's also important to remember that hot properties sell quickly, so if you find something that meets your needs, don't wait long to put in your offer.
Whatever stage of your real estate journey you're in, the CSi Property Group is here to help. If you're looking to buy or rent a property in Gauteng or Mpumalanga, get in touch today.
Author: CSi Property Group