Your question: What do I need to know about buying a house for the first time in South Africa?

What to do when you want to buy a house for the first time?

Preparing to buy tips

  1. Start saving early.
  2. Decide how much home you can afford.
  3. Check and strengthen your credit.
  4. Explore mortgage options.
  5. Research first-time home buyer assistance programs.
  6. Compare mortgage rates and fees.
  7. Get a preapproval letter.
  8. Choose a real estate agent carefully.

14.08.2020

What you need to know before buying your first property?

Determine how much you can afford based on your income, expenses, savings, debts, and assets. … Generally, you should spend no more than 30% of your gross monthly income on housing. You’ll need a down payment of anywhere from 5% to 20% of the purchase prices (though this can be as little as 3.5% for FHA financing).

IT IS INTERESTING:  What does it take to be an effective and successful teacher in South Africa?

How much money do you need to buy a house in South Africa?

In most cases, buying a home will require you to put down a deposit that amounts to between 10% and 20% of the home price. The remainder will then be covered by the lender once you’ve successfully applied for a home loan.

How long does it take to buy a house in South Africa?

On average, to buy a house in South Africa, it takes around three months from the date of sale until the property is registered in the new owner’s name.

How much money do you need to buy a house for the first-time?

Realistically, most first-time home buyers have to put down at least 3 percent of the home’s purchase price for a conventional loan, or 3.5 percent for an FHA loan. To qualify for one of those zero-down first-time home buyer loans, you have to meet special requirements.

What should you not do before buying a house?

Here are five things to avoid as you prepare to buy a house.

  1. Don’t Disrupt Your Credit Score. …
  2. Don’t Open a New Line of Credit. …
  3. Don’t Miss Bill Payments. …
  4. Don’t Move Money Around. …
  5. Don’t Change Jobs. …
  6. Don’t Lease or Buy a Car.

22.11.2019

When should you not buy a house?

Some of the reasons include: not having a down payment, having bad credit or a high debt ratio, having no job security, and renting being 50% cheaper. Other reasons include: moving frequently, being in an unstable relationship, being in a declining market, traveling a lot, or the fact that everyone else is doing it.

IT IS INTERESTING:  How has Africa benefited from China?

Can I rent out my house without telling my mortgage lender?

Some mortgages specifically state that you must be the occupant of the mortgaged home. If your mortgage contract has a clause like this, you absolutely must notify the mortgage lender of your intention to rent. If the mortgage contract is silent about rental, you generally can rent out the property without a problem.

Is it cheaper to build or buy a house in South Africa 2020?

Is it cheaper to build or buy a house in South Africa? The current market prices indicate that it is 15% cheaper to buy a ready house than to start building one from the ground up. However, most ready homes do not come with the features of one’s dream home.

What percentage of your salary should you spend on a house in South Africa?

How much does the average South African spend on rent monthly? On average, South Africans spend around 30% of their take-home salary on rent.

Is it cheaper to build or buy a house in South Africa?

Currently, on average, it’s 20 percent cheaper to buy than to build. Building your dream house adds sentimental value and advantages in the long run. … Also, having everything brand new and up-to-date is an advantage when you build instead of buying an existing home.

Is it a good time to buy property in South Africa 2020?

The interest rate cuts of 2020 continue to contribute to property market growth, making property investment more viable, especially for first-time home buyers. In fact, FNB data shows that home buyers under 35 account for 43% of residential sales, a 38% increase from 2019.

IT IS INTERESTING:  Is Fufu an African food?

What happens if buyer pulls out of house sale South Africa?

If the purchasers decide to withdraw from the agreement of sale where all the suspensive conditions (if any) were fulfilled, then that would mean that the purchasers would be in breach of the agreement. … The party in breach of the contract would be those whom the agent will claim his or her commission from.

What are the hidden fees when buying a house?

To make sure you don’t make that mistake, we’ve outlined 11 hidden costs of buying a home:

  • Closing Costs.
  • Emergency Repairs.
  • Home Appraisal.
  • Home Inspection.
  • Homeowners Association Fees.
  • Homeowners Insurance.
  • Loan Origination Fee.
  • Maintenance.

16.11.2020

Hai Afrika!