FIRST TIME HOME BUYERS
putting your hard-earned money into your own home is obviously than paying rent to enable someone else to pay their bond off1.
KNOW WHAT YOU CAN AFFORD
Obtain pre-approval for a home loan BEFORE you allow your heart and emotions to dictate the process. Once you know what you can afford, consider factors like location and hidden costs (Levies, maintenance, etc. Then put in your offer with confidence. Co-buying could be a solution if you are unable to afford the property on your own. You should also ensure you are able to fund the transaction costs, or that you are able to include that in your home loan if that is available.
Buy sensibly. Instead of overcommitting yourself, you can rather buy an apartment if that is all you can afford. You can always upgrade later.
Property is a long-term investment. It takes at least five to seven years before you will start making a real dent in the capital borrowed. Invest as much spare cash into your property and aim to pay it off as fast as you can. Your home is an asset, and you should treat it as such by taking care of it to preserve and potentially grow the value.
Keep your insurances up to date, both the homeowners’ insurance and well as insuring the content. Make sure the property is properly secured, and regularly test the security features.
Owning your own home provides a foundation upon which to build a life, raise a family, and build wealth. There are no short-terms gains in property, plan properly, do your due diligence and ensure you know what you are in for. Invest in your property to ensure it not only retains, but grows in value.
Homeownership can come with tax advantages, such as deducting mortgage interest and property taxes from your taxable income. These benefits can help reduce your overall tax liability.