What to Look for when buying a house in South Africa for the first time

    Whether you’re a proudly South African citizen or a foreign-born resident looking to invest in SA’s property market, here is what you should know about joining the ranks of millions who own some of the most sought-after land in the world. 

    What benefits do you receive as a first-time property owner in South Africa? 

    Buying a home is an exciting journey that is compounded by the opportunity to live and work in a beautiful country like South Africa. With many cosmopolitan major cities to select from, you can put down roots and achieve the South African dream with your perfect property.

    A perk of becoming a first-time homeowner is the Finance Linked Individual Subsidy Program (FLISP). This is a government subsidy initiative that was created to alleviate financial pressure from low to medium-income earners. If you meet the criteria, the government grants you the subsidy which does not need to be paid back. Once your home loan application has been approved, you can apply for FLISP relief at the Local Department of Human Settlement Office or by getting in contact with the National Housing Finance Corporation. 

    First time’s a charm: how to make the most of this advantage

    First-time buyers are often more appealing to those selling their homes and property practitioners. This is because they have less complicated transactions. Your offer will be appealing as you won’t be relying on the condition of the sale of your existing home. Is your home loan pre-approved? Great, this gives you the upper hand immediately. Property practitioners who are experts in their field welcome helping first-time buyers through this process. It is a bonus if you are able to pay for your house in cash


    How do I decide to buy a new home?: encouraging factors to consider

    As soon as you make the decision to move on up in the world, there are a few steps to put in place: 

    • Cement your credit score: keep a clean credit record by paying your bills on time and having minimal debt.

    • Save for a deposit: having a deposit on hand makes you look financially sound and ready to negotiate a better interest rate.

    • Afford-me-not: look at your budgets with a discerning eye and use a bond calculator to determine what you may qualify for.

    • Costs that add up: don’t forget additional legal costs, maintenance and property fees.

    After you know your finances are in order, consider the lifestyle factors of becoming a first-time homeowner. Since property investment is a permanent decision, think about the impact it will have on your daily life. From the surrounding schools in the area, travel distance to and from work, accessibility to amenities and a thriving social scene with an engaging community should be what you wish for. When buying a house, look at the central locations, areas with a solid history of safety and high levels of service delivery. These are essential things to look for, especially in South Africa. 


    Know your worth: property valuations and future projections 

    Buying a home in popular, upmarket areas like Umhlanga in KwaZulu-Natal, Sandton in Johannesburg or Camps Bay in Cape Town is guaranteed to give you a return on investment. But there are countless other areas with quality homes, excellent amenities, modern architecture and more. Your goal in entering the real estate market is to live in a home that brings you joy, provides a fulfilling lifestyle experience and ultimately will be one of the best financial investments you make. Contact Seeff Property Group to view our listings all over South Africa. We pride ourselves on showcasing a wide range of the most sought-after homes in the country.

    Author: Seeff Property Group
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