There are several things that you need to consider before you start searching for your dream home. As bond originators, Phoenix Bonds is well-versed in all things property and are here to help you navigate the sometimes-confusing world of real-estate.
Before you begin your property search, it’s important to check what kind of home loan you qualify for using a bond calculator. This is handy information to have as it gives you an idea of what price range you can afford.
Additionally, it gives you an estimate of your monthly repayments – more critical information that you need to have before making your decision.
Buying a house in South Africa usually requires the prospective buyer to have a deposit of between 10% and 20% of the purchase price readily available.
Putting down a deposit will help minimise your monthly repayments and overall cost of your home.
However, it is possible to acquire a 100% home loan which will be funded entirely by monthly repayments.
Despite what most may think – there are home loans available for low-income earners in South Africa. However, it’s important to understand that home loans are based on your income. A low income will result in a lower loan amount.
Furthermore, your credit score also plays a big role in deciding how much your bank is willing to lend you.
We advise that you spend no more than a third of your income on monthly bond repayments.
Moreover, another critical point to mention is that the purchase price of a home is not the only cost that you need to consider. Bond costs, transfer fees as well as your monthly rates and taxes also need to be considered and calculated.
Looking into the cost of rates and taxes in each area will help you work out what your home expenses will be each month – better preparing you for the day you become a homeowner.
Buying a home is a clever financial investment. However, it's always best to do the necessary research before taking the leap.
Contact us and we’ll help you make the right decisions for your future financial self.
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