Friday, January 11, 2013

Take These Steps To Own Your Own Home

By John Adamson


For the unfortunate South African market, the market value of most homes has increased to at least 15% from last year. First timers, young homebuyers and middle range income earners now have difficulty in gaining their first property. They can, however, opt to purchase smaller properties like apartments or townhouses. When they get a foothold in the market, young investors and homebuyers can start building their equity.

When looking for a new home, it is important to consider your needs first. It is necessary to determine what size house you require as well as any features that are must haves. What sort of local facilities are required is also a consideration. If you have kids, are there quality local schools? Is it a safe neighborhood? All of these factors should be weighed up when making a purchasing decision.

Consider the area size and the floor size before a purchase. You don't want a home that is too big or too small for your family. How many rooms do you need? Will this be bachelor's pad or will this be your very first family home? Some have other concerns like the number of bedrooms and the number of bathrooms. You must have a checklist of the qualities you need your home to have.

If you find the perfect property, you will then need to select a loan provider unless you can afford to pay in full. A mortgage is an agreement between the loan company and the buyer where the buyer agrees to pay back installments regularly. If you cannot pay the loan back, you will need to hand over your property to the lender. A mortgage bond is a formal agreement between the lender and the purchaser.

In applying for a mortgage loan, you must see to it that your property installment is not more than 30% of your income. If it is, then you must think twice before purchasing a property. You might end up losing it in the end because of lack of enough money to pay.

A home loan is one of the biggest commitments you will ever make. Therefore, your choice of a financial provider is a crucial step in the process. Choose institutions that have a respectable and trustworthy reputation. See to it that it is dedicated and specialized. There are financial providers with a one size fits all policy; it is best to avoid them. Financial institutions that specialize in home loan are your best option. They should know best the answers to your tiniest detail question.

As a ground rule for acquiring land or a home, be clear on the type of ownership you desire. There are different types available such as Title Deeds, Sectional Titles, Freehold, and the 99-year Leasehold. It is well worth the time and effort to explore all options prior to making an investment.




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