Buying Residential Property
When it comes to purchasing property, you will hear an array of quotes and packaged wisdom like “There’s no better time than now”, “The best time to plant a tree was 20 years ago. The second-best time to plant a tree is today”. In reality, both these quotes are true. However, there are very few guides about what to think about and do before, during and after you buy a property. Hopefully, this course will enable you to position yourself better when you decide to move forward with this massive, yet rewarding decision.
Chapter 1: I'm starting to flirt with the idea of buying a place
This is probably the most daunting and important stage of the process for two reasons. The first reason is that it’s the step that moves you from thoughts to actions. The second reason being that questions like where, when and how to start to occupy your mind. The truth is, that the saying “There’s no better time than now” has never been truer today than before. So, how do you go about it?
Chapter 2: When is the best time to purchase a property?
In this VUCA (volatile, uncertain, complex and ambiguous) time, there’s some glimmer of hope for your bank account. The repo rate has dropped to an all-time low, again. This means that interest rates and the cost of borrowing are the lowest that they’ve been for decades.
Chapter 3: Credit Score
Your credit score is a rating that is collected from credit rating agencies and used by banks and other lenders to tell them how much of a lending risk you are. A customer’s credit shows a financial institution whether your debt repayment behaviour will make you a good credit customer or not.
Chapter 4: You have now saved up enough to buy a small island and have a credit score of 1000? What's next?
It’s utterly important that you procure the help of a real estate agent to help you find your ideal home. Estate agents can help you either purchase or sell your property. You do not have to use the same estate agent for both transactions should you already be in possession of a property that you would like to sell.
Chapter 5: Offer to Purchase
Upon finding your dream home you will have to sign an offer to purchase. An offer to purchase is an agreement between yourself and the property seller. Think of this agreement as a memorandum of understanding highlighting certain terms about the purchasing of the property.
When shopping for a home loan my suggestion is to apply at the institution which you bank with last. Shop around in order to get an understanding of what banks without your transactional records would offer you. You can also use online home loan comparison services for this. Why do you ask?
Course Curated By:
Ilunga Wealth Management PTY (Ltd)
Most people who have met Gilles (as he is commonly known) may be intimidated by the level of energy with which he engages with. He channels this passion into everything which he does. Gilles is the founder and director of Ilunga Wealth Management (IWM). IWM’s primary focus is the purchasing of property at the planning stage to rent out said properties at affordable prices. As a company, we are building a property portfolio from the East Rand of Johannesburg to the southern suburbs of the Cape to increase the amount of affordable accommodation for the ordinary South African.
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