If you are considering taking this important step, you are not alone. We have compiled answers to some of the most frequently asked questions by first-time buyers to help you start your journey with confidence.
What is the best age to buy your first home?
There is no one-size-fits-all answer when buying your first home. Generally, people start considering buying property in their late 20s to early 30s, but the “right age” is more about financial readiness than a number. If you have a stable income, a good credit record, and the ability to manage long-term financial responsibilities, you might be ready – regardless of your age.
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How do you know how much you can afford?
Before buying your first home, start by calculating your total monthly income and deducting essential expenses such as transport, groceries, insurance, and existing debt repayments. As a general guideline, banks recommend that your home loan repayment should not exceed 30% of your gross monthly income.
If you are buying with a partner, your combined income can be considered – provided both parties are co-applicants on the loan. This can increase your affordability and open up more options in your price range.
Many first-time buyers are already paying rent, and this amount can often be used as a benchmark. If your current rent is similar to the projected monthly bond repayment, it is a good indicator that you may already be managing that level of financial commitment. However, remember to factor in additional ownership costs such as rates, levies, maintenance, and insurance.
What comes first: finding a house or applying for a home loan?
Before you start house hunting, it is best to get pre-qualified for a bond. Pre-qualification gives you a clear idea of what you can afford, helping you focus on properties within your budget and avoid the disappointment of falling in love with a home that is out of reach.
It also shows sellers – and agents – that you are a serious buyer. In fact, agents prefer working with clients who are pre-qualified, because it indicates you are committed and not just browsing. More importantly, it protects the seller: under the POPIA Act, it is crucial not to expose a seller’s property and personal information to unqualified buyers who have not completed FICA checks.
Only once you have made an offer will you formally apply for the home loan, but pre-qualification is your first – and most important – step.
How important is a good credit score?
When buying your first home, a good credit score is crucial. Your credit score directly affects your ability to secure a home loan and the interest rate you will be offered. A high score could result in a more favourable loan offer, while a poor score could lead to a rejection or higher interest rates. Aim to maintain a clean credit history by paying bills and debts on time.
Will I need a deposit when I apply for a home loan?
In most cases, banks require a deposit – typically around 10% of the property’s purchase price. However, 100% home loans (no deposit required) are available, especially for first-time home buyers with a strong credit profile.
While a deposit is not always essential when buying your first home, it can significantly increase your chances of loan approval and will also help lower your monthly repayments.
It is highly recommended to consult a bond originator, who can guide you through the process, compare offers from multiple banks, and help you understand what you qualify for – even if you don’t have a deposit saved up.
Should I set a budget before house hunting?
Absolutely. Setting a clear budget before you start house hunting is essential. Base your budget on what you can realistically afford – not just the purchase price, but also the additional costs that come with buying a home.
These extra costs include transfer fees, bond registration, and legal fees, which can add up to 8% to 10% of the property’s value. These amounts are usually payable upfront when the property is transferred into your name.
To avoid surprises, you can request a formal cost estimate from a conveyancer before signing an offer. This will give you a clear picture of the total amount you will need and help you plan your budget with confidence.
How do I choose a trustworthy estate agent?
A trustworthy estate agent will listen to your needs, offer honest and informed advice, and guide you through the buying process of buying your first home with professionalism and care. It is important to choose someone who is registered with the Property Practitioners Regulatory Authority (PPRA). This ensures they are bound by the PPRA’s Code of Conduct and operate ethically and legally.
Don’t hesitate to ask for references or reviews from previous clients. A proven track record can give you peace of mind.
How do I choose the right neighbourhood?
Think long-term before buying your first home. Consider proximity to work, schools, shops, and medical facilities. Visit the area at different times of the day to assess noise, traffic, and safety. Talk to locals and ask your agent for crime statistics and planned infrastructure developments.
What is the difference between buying in a complex or estate and a free-standing house?
Complexes and estates often offer security and communal amenities, but they also come with levies and conduct rules. Free-standing homes provide more freedom and space, but may require greater maintenance and private security. Decide what suits your lifestyle best.
What should I look out for when viewing a house?
While a house might look perfect at first glance, it is important to look beyond the cosmetic appeal. Be on the lookout for structural damage, signs of damp, roof leaks, cracks, or plumbing and electrical issues. These can be costly to fix and may not be immediately obvious.
You are well within your rights to ask a building inspector or trusted contractor to accompany you. A professional eye can spot potential problems that you might miss – saving you from expensive surprises down the line.
Although the seller is legally required to disclose both latent and patent defects, doing your own thorough inspection is vital. This not only protects you from unexpected repairs but also helps you avoid Buyer’s Remorse. Knowing the true condition of the property gives you peace of mind and ensures that you’re making a sound investment.
Final Thoughts
Buying your first home does not have to be overwhelming. With the right information and professional support, it can become a truly rewarding and empowering experience.
For most people, buying a home is a journey into the unknown—and yes, there may be a few hiccups along the way that can leave you feeling discouraged. That is why it is so important to choose an estate agent who keeps you informed, explains timelines clearly, and helps you understand the legal jargon. A good agent will walk the road with you, ensuring that you are never left in the dark and always know what to expect next. With the right guidance, the journey to owning your own home can be a positive, exciting milestone – one you will remember for all the right reasons.
For more information, contact Letitia Entres on 061 494 5223, or letitia@kellaprince.co.za or visit the Kellaprince website.
