The Perks of Owning Your Own Home:

Owning your own home can be a fantastic investment, as there is visible, researchable proof of the growth of property values, through the years.

By paying your monthly bond instalment, you’re not just covering your cost of place to live, you are reducing the amount you owe on your bond and as the value of your property increases over time, this will result in an actual cash amount which could be used to invest in a bigger home or a home to rent out as a start to your property portfolio wealth.

Buying vs renting gives you the security of knowing that the money you are spending monthly is paying for your very own asset and that there can be no surprises from an outside party forcing you to have to move or pay more.

You have more freedom to change the things that aren’t working for you in your living space, as well as explore your personal home decorating dreams.

Of course, buying a home comes with an increase in responsibilities plus long-term financial commitments, therefore careful planning of your options and setting goals is vital.

Top Tips for Saving Up and Getting Ready to Buy:

1. You need to have a stable income: At least 3 months’ payslips or proof of income will be required. *Self-employed people will need more.

2. Credit Score: Find out what your credit score is. Pay your accounts on time and avoid too much debt. The lower the score, the less likely you will be granted a bond and if you do it will be at a higher interest rate. If it is low there are ways to build it up. Ask for help with this.

3. Cost of transfer: It is best to have the transfer and registration costs available: The banks and the government have realised that saving for this is hard in our current economy and have launched products specifically aimed at assisting first time home buyers with these costs.

4. You need a Budget: Write down all your income and expenses to see what you can afford, especially see if you can identify wasteful spending that could be cut and rather saved towards buying and or paying off your own home.

5. Automate Savings Goals: Have a savings goal and set up automatic transfers to a savings account just for your home purchase and add any extra money, like a bonus or gift.

6. Consider downscaling when starting out: Don’t set the bar too high in the beginning. Look for a property that will suit your immediate needs at a price which you can comfortably afford.

Do some careful homework on the resale values in your chosen area to ensure that your investment has potential to deliver a growth in value. Some properties are going at a reduced price because of factors like polluted rivers, infrastructure problems, increased crime, bad service delivery from the local council, and other issues. The old adage of “buy the smallest/ worst property in the best area” still rings true today.