Buying a home for the first time is a milestone worth celebrating – but it’s also a major financial commitment that requires careful planning. In recognition of New Homeowners Day (1 May), Susan Abro of Susan Abro Attorney shares practical advice to help first-time buyers make informed, confident decisions.
“Purchasing property can be overwhelming, especially if you’re unfamiliar with the process,” says Abro. “Preparation is key – and the more you know, the smoother the journey will be.”
Smart tips for first-time homebuyers:
- Know your numbers: Before you begin your home search, understand what you can realistically afford. An online bond calculator can help you estimate the loan amount you may qualify for, as well as your monthly repayments.
- Budget for the extras: Many new buyers are surprised to learn that purchasing a home comes with additional costs, including transfer and bond registration fees. These costs can be significant and must be paid before registration. Use a bond and transfer cost calculator to estimate these expenses in advance. Some banks offer loans of up to 105% to help cover these fees if you meet specific qualifying criteria.
- Shop around for a home loan: Don’t just apply to your bank – compare offers from different financial institutions. Even a small interest rate difference of 0.25% can save you almost R40 000 on a million-rand home loan. Mortgage bond originators can assist by submitting your application to multiple banks and helping you secure the best deal.
- Look beyond the surface: When viewing properties, go beyond aesthetics. Test water flow and pressure, check for signs of damp, inspect electrical fittings, and ensure plumbing is functional. Ask about the location of the geyser and distribution board, and enquire about the condition of the roof — whether there are any existing leaks or if repairs have been done. Request a detailed disclaimer form from the seller listing known defects. While sellers aren’t required to disclose visible flaws, it’s up to the buyer to inspect thoroughly. Any concerns should be documented in the sale agreement.
- Understand the paperwork: Before signing any offer to purchase, carefully review all documents relevant to the type of property (whether it’s freehold, sectional title, or a cluster development). These may include: Title deed, approved building plans, Body corporate rules and financials (for sectional titles), Homeowners’ Association (HOA) rules and constitution, and the latest municipal rates and utility accounts.
- FICA compliance matters: You’ll need to provide the required FICA (Financial Intelligence Centre Act) documents – such as proof of residence and certified ID copies – to the estate agent and conveyancer when requested. Delays in this process can hold up the transfer.
- VAT vs. Transfer Duty: Whether you pay VAT or transfer duty depends on the seller’s VAT registration status. “Always confirm if the purchase price includes VAT and seek guidance from a qualified accountant or auditor to understand the financial implications,” advises Abro.
“While the homebuying journey can feel complex, taking it step by step and asking the right questions makes all the difference. A successful property purchase isn’t just about the home, it’s about the paperwork, the planning, and the people guiding you. With the right support, you’ll be in the best position to turn your dream home into a rewarding reality,” concludes Abro.