Buying your first home is exciting but it’s also one of the biggest financial decisions you’ll ever make. Before you sign on the dotted line, take a step back and make sure you can confidently answer these key questions:
1. Do I fully understand the property condition report?
This document outlines the condition of the property as disclosed by the seller. Read it carefully. This is where you’ll spot potential red flags like damp, structural issues or repairs that may become your responsibility.
2. Have I read and understood the sale agreement?
It’s tempting to skim, but don’t. This is a legally binding contract. Take the time to go through every clause and ask your agent to explain anything unclear. A good agent will guide you through it line by line.
3. Do I understand the voetstoots clause?
Most properties are sold voetstoots - meaning “as is.” This limits the seller’s responsibility for defects. If you don’t understand what is (and isn’t) covered, you could be in for unexpected costs later.
4. What can I actually afford (not just what I qualify for)?
Banks may approve you for more than you’re comfortable repaying. Consider your lifestyle, monthly expenses and future plans before deciding on a purchase price.
5. Do I know my credit score?
Your credit score directly impacts your bond approval and interest rate. A better score can save you thousands over the life of your home loan.
6. What funding options are available to me?
A home loan from a bank is the most common route but it’s not the only one. Explore your options and choose what works best for your financial situation.
7. Do I understand what a bond originator does?
A bond originator can submit your application to multiple banks, helping you secure the best possible deal. Even a small reduction in your interest rate can make a big difference over time.
8. Do I know what a conveyancer does?
A conveyancer is the attorney who handles the legal transfer of the property. They ensure everything is registered correctly and that ownership is legally transferred to you.
9. How will I pay for transfer and registration costs?
The purchase price isn’t the only cost. Transfer duties, legal fees, and bond registration costs must be paid upfront, so make sure you’ve budgeted for them.
10. When can I move in?
Occupation dates matter. Make sure you understand when you’ll get the keys, and whether any occupational rent applies if you move in before registration.
Finding the perfect home is only one part of the home buying process. You also need to be making informed decisions. Ask questions, lean on professionals, and take your time. The more you understand upfront, the smoother your journey to homeownership will be.
