Tips for first-time Homeowners

What recommendations would you give to first time home buyers?

• You need to find a great agent that understands the whole family’s needs and wants. Someone that can find the best neighbourhood while taking the families budget into consideration.

• A pre-qualification of the First Time Buyer based on “affordability” and a credit check will give the First Time Buyer a good understanding of what they can afford to buy in terms of a Purchase price.

• The ooba Loans Consultant would be in the best position to guide First Time buyers on “Affordability” as well as the Home Loans process and Costs etc.    

What cost/charges are the purchaser liable for?

 •  The Purchaser is liable to pay the registration costs of both the Transfer Attorney and the Bond Attorney.

 • The transfer and bond registration costs are prescribed by the Legal Practice Council and are calculated on a sliding scale according to the Purchase Price and/or the Bond Amount.

 • Included in the costs of Transfer, is Transfer Duty which is a tax payable to SARS on the purchase of a property. Currently a purchase price below R1 000,000-00 is exempted from Transfer Duty.  Banks generally do not advance costs to Buyers as part of the Home Loan. You will have to have these amounts available in cash before you can buy a property.

  • If there is a levy payable on the property you are purchasing, you may be liable for pro-rata levies from the date of registration until the date the levy clearance figures were paid for by the Seller. This amount will then reflect as a credit on your first levy account received from the Body Corporate / Homeowners Association.

 • The bank will charge an initiation fee that may be added to your Home Loan or which may be payable in cash up front. Consult your bank or Mortgage Originator in this respect when you accept the quotation issued by the bank.  

What is more important – area or price?

• Being a First Time Buyer would necessitate a purchase of a Property at an “affordable Price”  in an area where the Buyer would get a return on their First Property Investment in the short to medium term (A good Estate Agent would be able to Guide a potential First Time Buyer on their options)  

For a first-time buyer should you buy a townhouse / flat in a estate or a house in the suburbs?

•This is subjective and would depend on the Buyer’s needs. Generally, First Time Buyers would enter the Property market by Purchasing a property in a Sectional Title complex.

Is your second home purchase more important than your first purchase.

•Not necessarily. Your First home Purchase is particularly important and should be a good experience and will play a huge role in the success of your second home purchase.

Can you get a 100% home loan when you are a first-time home buyer, and do you get any special interest rates because you are a first-time buyer?

• The Banks are all different in their lending policies for First Time Buyers, but in general the Banks are generous in their offerings to First Time Buyers

• Our ooba Loans Consultant would give First Time Buyers best advice on the Banks products and policies and guide them accordingly  

KVV Tips for proactive purchasers

 • As soon as the Seller accepted your offer, start the process of applying for a Bond immediately. Time is of the essence – if you do not have a Bond Grant in the period stipulated in the contract you may lose the house. The Estate Agent or your Attorney can assist you in recommending a Mortgage Originator to help you with this process.

• Provide your FICA and other supporting documents to your Estate Agent, Mortgage Originator and the Transfer and Bond Registration Attorneys as soon as possible.

• Make sure your Income Taxes are paid up to date with SARS.

• Ensure that you comply timeously with all conditions of your Offer to Purchase, such as payment of deposits and costs, as well as signing of documents at your attorneys.

• Discuss any uncertainties or problems with your Transfer Attorney