Best advice for first-time buyers

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BUSINESS NEWS - Buying a new home is especially stressful for first-time buyers, but they can do much to look like "old-hands" - and avoid common problems - by following some basic guidelines.

So says Charles de Kock, principal of Chas Everitt Southern Cape, whose first advice to inexperienced buyers is to "make sure you deal only with qualified, experienced and registered estate agents who are familiar with your preferred area, and also willing to provide all the explanations and assurances you need".

• Avoid overbuying. "Get proper pre-approval for a home loan through a reputable bond originator and set yourself a reasonable target price range, remembering to also take transfer and moving costs into consideration. It may help to draw up a detailed monthly budget that provides for insurance, city council rates and service charges, levies and maintenance, as well as your home loan repayment."

• Save a deposit. Tempting as it may be to seek 100% financing, De Kock says that a 20% or even 10% deposit will ensure much lower interest charges and put you in a more favourable position when the time comes to upgrade to your next home.

• Be realistic. "Don't spend forever searching for the 'perfect' home that has everything on your wish list. Look for homes that offer your must-have features and be willing to compromise on the non-essentials in order to make the most of the current opportunities presented by low interest rates and low house price growth. You can always consider improvements and additions later stage."

• Check title deeds and zoning. You should ask your estate agent for help with this, as it is best not to buy a property that has all kinds of restrictions attached to it or servitudes running across it, he says.

"And you don't want to find out only after you've moved in that the attractive open area opposite your new home is zoned for a shopping centre, new block of flats or other traffic magnet."

• Ask before you sign. Before you make any offer to purchase, De Kock says, you should ask every question you can think of about the property, and preferably get it inspected by a professional if there is anything you are not sure about.

"Also, don't forget to check out the likely routes to work, shops and schools, the local recreation, shopping and medical facilities, the availability of public transport, and the condition of surrounding homes," he advises.

"And finally, don't let anyone pressure you into making a hasty offer, because it is not easy or cheap to rectify the wrong choice when it comes to real estate."