Buying a house in south africa – Owning a piece of property is everyone’s dream; this is one of the reasons why most business people are reverting to property investment as means of injecting money into their bank accounts. Building or buying a piece of building is very expensive especially when that piece of property is located in the city.
It is in line with the above information that some people find it very challenging to purchase a house in a short space of time but certain steps need to be followed in order to achieve this dream.
Tips for buying a house – Here is what you need to do if you need to buy a house:
- Come up with a budget: Coming up with a figure regarding how much you need to budget for a house is very essential. You can get such insights from home loan experts or any financial institutions at a free cost.
- Choose a location: The value of a property varies from one place to another; land is very expensive within the CBD and outside the CBD. As such, building or buying a house in such areas means that your budget should be high. The costs are contrary in high density areas and reserves. The level of infrastructure also determine the cost of location, buying or building a property in a place where there are good roads, high quality health facilities, power, conducive water and sewage system means that the costs of purchasing or constructing a house in that place are high.
- Availability: Getting the right property that suits your needs is generally a challenge in a big country like South Africa. To evade this aspect, a consumer should employ the services of an estate agent who can avail that information to you. Another alternative is to conduct an online research on various property management websites for a clue regarding the availability of a house or land to build a house on. You can also search or post an update on Gumtree or OLX, these websites have so much traffic such that you can get a response within a short space of time.
- Structural aspect of the property: It’s of paramount importance to conduct a general assessment of a property before you purchase it. Such an assessment includes checking if the property has any visible defects such as wall cracks, sagging gutters, broken windows, missing asbestos/tiles, geyser problems. Such shortfalls should be rectified before you purchase; another important measure is to check with the local municipality if the property situated in the right place, they have in their books a list of legal properties. You should quickly stop any negotiations if the property is not available. Also check if the seller is the rightful owner, you can do that by asking from the local municipalities.
- Negotiate on the price: You should make a comparison of the price of the property before you buy it; bear in mind that there are costs associated with purchasing a piece of property. Such includes, transfer duty which is calculated based on the value of the property. Value Added Tax (VAT) if you directly bought the property from the owner. Conveyance fees which are 1 – 2% to the price of the property and other bond expenses such as initiation fee, legal fees, stamp duty and bond registration costs based on the value of the bond.
If correctly used, the above information can be of much assistance if you need to build or buy a house in South Africa.