Articles - Buying a starter home

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Buying a home

It's never too early to start planning when you

want to buy a home.

Decide on what you can afford

Calculate how much you can afford and then

decide what kind of property suits your

needs (townhouse, cluster, single stand

house, etc). Think carefully about the

location of your home, including how far

you will have to travel to work, schooling

and rates in the particular municipality.

When you start looking for a property,

have a clear idea of what you want before

speaking to an estate agent.

Look at your current budget

Have a look at your income and both long- and short-term expenses. Work out a monthly budget and allow for any expected changes. Will that new job mean an increase in salary? Are you planning an expensive wedding or making a big purchase, such as a car? A detailed budget will show where you have flexibility in your cash flow.

Building a banking relationship

Make an appointment to see a Relationship Consultant at your selected banking institution and discuss the relevant options for current, saving accounts, etc. Establishing a good banking record will go a long way towards a secure future.

Get pre-approved for a home loan

If you know how much you can borrow, you won’t have to make an offer conditional on financing -- and your offer will be more appealing to sellers.

Plan for all contingencies

Remember to make provision for a cash deposit on your home. Depending on your financial situation, you may qualify for a home loan of up to 100% without having to put down a deposit. Make sure that you are aware of all the additional costs that you will have to pay over and above the deposit. This includes things like a property assessment fee, legal fees and transfer duty.