Real Estate Investor Magazine South Africa March 2014 | Page 28

ACQUIRING

BY RETHA SCHUTTE

Buying a home?
Make sure you ask all the right questions

B

uying a home may well be one of the
biggest financial decisions you are likely
to make in your lifetime. Asking the
right questions and partnering with an astute
real estate agent is therefore of key importance.
You will also do well to talk to a financial
institution or to a reputable bond originator
before embarking on your search for the
perfect home. A letter of comfort from a
financial institution, confirming that you have
sufficient funds and are financially secure and
able to complete the purchase, will enable you
to look for a home in the appropriate price
category from the outset.
It will also strengthen your hand when
putting in an offer and negotiating the
purchasing price.

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March 2014 SA Real Estate Investor

Pre-approval is always considered in a
favourable light during the negotiation
process. Moreover, it can save a prospective,
new homeowner a great deal of time and
unnecessary anguish. Schutte notes that it can
be disheartening when looking at homes in toohigh a price bracket only to find that you cannot
obtain the necessary finance.
Try and look in the right price bracket to suit
your budget from the outset. Find an area that
complements your lifestyle, in terms of your place
of work, suitable schools, universities and other
conveniences such as transport, shopping and
entertainment centres, highways and healthcare
facilities. Should you have children of schoolgoing age or if you are planning a family it is
recommended that you find out all there is to
know in terms of school feeder areas before buying
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a property. This will avoid future disappointment,
particularly if you are hoping to secure a place for
your children at a good government school that is
close to your home.
Consider what you are wanting to buy carefully
– is it a starter home or are you looking for a longterm family home? Be sure to buy a property that
will grow in value, so that you will realise a return
on your investment when you choose to move onto
a new stage of life. This is where the services of a
well informed agent will prove invaluable.
Be careful not to buy the ‘fix-me-upper’ and
to then overcapitalise on a property or an area.
Always ensure that you can recover the money
that you have spent. The old adage of buying
the cheapest house in the best street or area still
represents good advice in today’s times.
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