Tips For Property Buyers

Being a first time property buyer in South Africa can be both an exciting , and intimidating experience, and the massive decision of purchasing property carries with it even bigger responsibilities. It is for this reason that it is extremely important for fist time property buyers to conduct proper research before taking the first steps of purchasing the property.

Financial status

Anyone considering investing in property should first consider the financial side of the process, and the various costs and fees involved. Potential buyers should take into account their financial and credit status. With the recent implementation of the new National Credit Act in South Africa, it has become increasingly difficult to buy property in the country.  All debt and account items are taken into consideration ranging from clothing accounts to credit cards.

It is recommended to gather a significant cash amount prior to this review process. These funds can be used as a portion of the deposit, and other additional costs such as transfer costs, and bond registration fees. To have these funds readily available will assist greatly in securing a larger loan amount

It is highly recommended that potential buyers also consult a legitimate mortgage broker or originator, who will be able to provide the client with mortgage advice based on the conditions of the current South African market. As a fist time property buyer, they will also help find the most suitable mortgage plan to suit your needs, as well as assisting with your applications . After this point in the process, the buyer will receive confirmation of the amount which they will be permitted to borrow in order to buy the property of their choice.

In reality it is thought to be much more difficult to obtain a home loan for a property which you have already decided to buy, than to get a mortgaged loan for a property which you are still undecided over. This leaves the potential buyer with one of either two options, the first being to either find their dream property first, or obtain confirmation regarding their finances which will allow them to know exactly how much they will be able to borrow, to avoid disappointment.

Property decisions

Once the available budget has been established, the buyer can then continue by starting the search for their most suited property. Future buyers should take various factors into consideration. Some of these factors include location, and the property's proximity to local amenities. Other points to be taken into consideration when buying a new home or even vacant land, are the possibilities of starting a family and doing alterations, or simply buying the property as an investment.

With current advances in technology and communications, the internet allows buyers to perform detailed online property searches on property portals. .

When searching and viewing property, it is advisable to be realistic and not go for properties which lie beyond your price range. Keep your search restricted to more affordable homes, which will better suit your needs.

Once you have discovered your ideal property, an offer should be made, based on what you've observed during your search. Once your offer has been accepted, the property should be taken off the market by the previous property owner.

Legal aspects

In order to handle all the legal aspects of the property buying process, an attorney or solicitor should be consulted. Also known as conveyancing, the lawyer will arrange for the relevant legal documents and agreements to be drawn up. Under the circumstance of a property being bought either with a spouse of civil partner, there would be rights given to both parties in the event of a split automatically. Although not considered to be the most pleasant of topics, these issues should be addressed n advance, should any break up or split occur in the future.

After the property owner has accepted the buyer's offer, the lawyer or solicitors will then act on the buyer's behalf, and request the title deed of the property. During this time the buyer may also require that a surveyor conduct a home buyer's report. Although not a legal requirement, it is advisable and well worth the cost that a full structural survey be conducted in order for you to have more information, and so that your investment is secured should any structural problems occur later. The buyer would however be held liable to pay for the mortgage advisory to carry out their independent property valuation.

Once the final property valuation, and data backing of the purchasing process has taken place, the mortgage lender will be able to finally approve or decline the home loan. Upon approval of the financing, a copy of the property survey should be sent to the buyer's lawyer. After all documentation has been checked, the lawyer will finalize the contract of sale and confirm all details with the mortgage lender. The buyer will then be required to pay the deposit to their lawyer, which is kept until the final exchange of contracts with the seller's lawyer.

The mortgage lender and lawyer will then ensure that the mortgage is available for the completion date and will prepare the property transfer deed, which will be signed by both the buyer and the seller, as well as the seller's solicitor. The mortgage lender will then transfer the funds into the seller's lawyer's account in order for the finances to be available for the agreed upon completion date. On completion day the buyer's attorney will transfer the funds to the seller's lawyer, whilst obtaining the transfer deed, Land Registry certificate and keys to the property in return. At this point of the process, the sale is complete, and the new owner can move into the property, while the solicitor handles all arrangements regarding the stamping of the transfer deed, the payment of stamp duty, transfer deed being sent to the South African Land Registry. This serves as a record of the transfer of the property to new ownership. The deed is then transferred to the mortgage lender who will act as security for the loan acquired, and the new owner will be billed by the solicitor for the cost and services rendered.