Investing In Your First Home – Tips to Know
May 17, 2019
For most people, buying their first home will be the biggest and most prestigious investment they’ll ever make. It will mean freedom and control over your own little ‘castle’; a place to build a home and a family. DFCC Bank housing loans can make your dreams a reality, but where do you start?
Research the Market
As with any endeavor, the first step will be to do a bit of research. What do you want out of buying a home? Are you looking for a house or an apartment? Do you have future plans of buying an investment property as well? Where would you like to buy? Is proximity to work, school and recreation important?
Asking yourself questions like these and doing a bit of research online first, will give you a better idea of what you want and where you’re going. Speak to a respected and reputed realtor as well, to get a deeper understanding of the market.
How Much Can You Borrow
The amount of money you can borrow to invest in your new home will depend on your current income and expenses. Our Home Loan Calculator can help you better understand how much your monthly loan payments will be based on the amount you’re looking to borrow. Make sure to get a good idea of exactly how much you can comfortably borrow, then you won’t waste time looking at properties that aren’t compatible with your budget.
Understand the Real Costs
You will face many costs when buying a property in addition to the deposit/down payment such as stamp duty, Mortgage protection policy and compliance with local government and/or municipal regulations. Understanding these costs and including them in your budget will protect you from any nasty surprises.
You’ll also need to consider whether you’ll need insurance and/or guarantors, which may be required depending on your individual circumstances. Speak to us to learn more about whether such requirements will be applicable to you.
Budget & Save
Whether it’s a shack by the sea or a luxury apartment, you will have to save up to make a deposit/down payment. You’ll need to create a budget and set aside a fixed amount each month for this purpose. Creating a separate savings account and setting up a standing order to automate your saving will help you immensely.
There are many home loans available in the market and not all of them are great choices. Find one that suits you. Our DFCC Bank home loans provide you with all the flexibility you need with low interest rates and extended repayment periods of up to 20 years.
Another thing you should keep in mind is to make sure that your monthly home loan payments don’t exceed 30 percent of your net salary. This way you can ensure that you will never be financially stressed and have enough freedom of movement to handle other expenses both expected and unexpected. Variable or fixed interest rates are another thing you should look into. Depending on how market rates go you could be negatively or positively affected by this choice.
Once you’re ready you can speak to us and apply for preapproval, then you can confidently make your decision when you come across the right property for you.
Finding the Right Property
Once your loan is in place and all other arrangements have been made, you can then step up your search. Try to see as many places as possible and keep track of the market so that you will know good value when you see it.
Once you find the right place act quickly to secure it. And if you need any assistance along the way at any point, we’re happy to help. Call us today on 011 2350000 or send us an inquiry and our sales team will get in touch.