Buying on a budget: live affordably in East London
Category Buying
Buying a new home is an exciting journey. Often a lifelong investment, it can be a challenge to find the right fit - especially if you're pinching pennies. Before you start typing "cheap houses for sale in East London", keep reading. We've put together some helpful advice to keep your finances in check and find a home that will put a smile on your face.
Know what you want
From the get-go, you need to understand what type of home you're after. Is it a flat, house, or complex? These choices affect the price so you'll need to evaluate your family's needs. If you have a pet, for example, a large yard for them to roam freely is an important factor.
Research East London suburbs
East London is known as a city with a small-town feel. Suburbs like Beacon Bay, Gonubie, and Nahoon Valley Park offer comfortable living and good value for your money. If you're up for renovations, fixer-uppers in posh areas can be worthwhile investments. Take your research seriously - some suburbs can have additional levies like a boom operator.
Work on your budget
A plan of action puts your home-buying goals into perspective. You'll need to add in your income, take an honest look at your expenses, and figure out how much you need. Remember, there are plenty of costs involved like a deposit, initiation fee, transfer duty, and insurance.
Take care with hidden costs
The price of a home goes beyond just the price tag you see online. Hidden costs can sneak in so you'll need to be prepared. These can include moving expenses, repairs to the property, rates and levies, and security. These factors should be included in your budget.
Start saving ASAP
A down payment makes a huge difference when you're buying a home. It lowers the amount you'll pay each month. Make a smart move to cut down on luxuries like eating out. If your work and schedule allow it, consider taking on a second job. Every little bit counts.
Buy at the right time
The best decision you'll make is an informed one. It pays to buy a home when it's a buyer's market. Effective from April 15, the SA Reserve Bank has cut the repo rate to 4.25% and lowered the prime lending rate to 7.75%. This makes it more affordable when seeking financing for your new home.
Explore financing options
There are plenty of home loan options out there. Ooba lets you 'shop around' for the best deal on your home loan and provides you with quotes to compare. Whatever you decide, it helps to boost your credit score by paying off old debts and overdue bills. A low score can increase your mortgage rate and even stop you from getting a home loan altogether.
Play the property game
Think you need to be a property mogul to get a good deal? Think again! There are some simple strategies you can use. Be the first to make an offer on a property by setting up automatic alerts. Keep an eye on houses that have been on the market and make an offer. The seller might be inclined to drop their price. Also, seek houses with rental potential so you can pay off your loan quickly.
Be realistic
This means looking for a house your income can afford, that meets your needs, and can be acquired in an achievable timeframe. It's okay if you can't. Never dismiss renting as a better financial decision. Renting can help you save money you can channel into your house savings. East London is ideal for this. It's one of the most affordable cities to rent in. People who live here only pay 19% of their salaries towards rent.
Find a reputable East London agent
An experienced and trustworthy agent will always have your back. They'll find a home that matches your budget. They'll guide you through the process and reveal hidden costs. A savvy agent will also help you negotiate the price of a property that's caught your attention.
For sound advice, talk to the property professionals at Century 21 East London. We have a number of houses for sale that will suit your budget and needs. Let's get started today.
Author: Century 21 South Africa
