When buying a property, you may only be concerned about your immediate property needs, but experts say you should also “buy with the future in mind”.
Gerhard van der Linde from Seeff Pretoria East offers this advice.
1. Consider the neighbourhood
While you may enjoy a neighbourhood with a great nightlife at the moment, your priorities can change quickly. If you are planning to start a family, for instance, the neighbourhood you invest in should be a practical choice with regard to good schools, medical facilities, etc.
Factors like security and resale value of property are also very important considerations when deciding where to invest.
2. Size of the home
Once again, if you are planning a family, or on extending your family, consider the size of the home, the number of bedrooms and bathrooms and also a garden where children can play.
3. Consider the level of renovation needed
If you are buying a ‘fixer-upper’ you need to carefully determine how much it will cost you – will you be able to afford all the renovations? And the time factor – do you have a very demanding job that won’t allow you to do DIY over weekends?
Sometimes it’s better to invest in a turnkey development, even if it’s more expensive initially, depending on your circumstances.
4. Consider the price of the home
While you may be in a good financial position at the moment, will you still be able to service the bond if there is an interest rate hike or if something unforeseen happens, like retrenchment? Sometimes it’s better to be realistic than optimistic.
5. Good rental demand in the area
If you had to relocate for any reason in the future it may not necessarily be a favourable time to sell your home (depending on the market), and then you may need to rent your property out.
Is there a good rental demand in the area, or can tenants pick and choose? This could result in a vacant property and loss of income. Also, determine the rental rates in the area, will you still be able to service the bond with the rental income you receive?