Author: Seeff, 21 February 2018, News
Buying a home with the future in mind
1. Consider the neighbourhood: While you may enjoy a vibey 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 extending your family, consider the size of the home, the amount of bedrooms and bathrooms and also a garden where children can play.
3. Consider the level of renovation needed: If you are buying a fix-me-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. Is there good rental demand in the area that you are investing in? 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?