PROPERTY NEWS - Lenders may require you to have a 20% deposit for your home loan. However, most lenders have loan products to borrow up to 100% of the property value. Create a budget to determine what you can realistically afford to spend on mortgage repayments. It should include all your regular outgoing expenses along with estimates for the cost of ownership of a home.
 
These costs will vary depending on where you live and the type of home you wish to buy. Once you have your finances in place, you've worked out your borrowing capacity and perhaps sought pre-approval on your home loan, it's now time to get to know the market.
 
Inspecting properties
Some things to look for include:

• The dwelling's structure:
• Damage from pests
• Poor construction
• Wet spots on walls or ceilings
• Cracks in the foundation

If you're not entirely sure if what you're seeing is cause for concern, and you are interested in the property, the best course of action is to enlist the services of a qualified building inspector.
 
The neighbours
Start to look at neighbourhoods that would suit your needs and your budget. A great place to start is online. There are lots of property comparison sites that will give you an indication of the average sale price of houses, land and units in an area.
 
The location: Location means more than the general neighbourhood. Take a look at the property's exact location for things that may bother you in the long term, hurt re-sale value, or cause lifestyle issues.
 
Making an offer
Make the offer in writing. A sales consultant will most often provide you with a contract to start the process, which will also highlight any conditions of sale. The consultant will then present this offer to the sellers. Common conditions of sale are subject to:

• Finance
• Sale of another property
• Specialist inspection or approval

The offer will be prepared on a standard approved contract and you will be asked to sign the required number of copies. Once this process has been completed the consultant will check whether any other interested parties are putting in an offer. This system ensures the situation remains fair to all parties in a multiple offer situation.

The seller can accept your offer, reject it or counter sign it. Counter signing usually occurs when the seller is not satisfied with the price offered and/or conditions included and subsequently alters them. The contract will be brought back to you for your consideration. If your offer is accepted and all parties have signed the contract, you may be asked to pay a deposit. This usually equates to 10% of the purchase price.
 
Property purchase costs
Financial fees vary greatly, depending on different matters. Possible expenses are:

• Bank fees
• Conveyancer charges may include legal searches
• Transfer duty on purchase
• Miscellaneous costs (building inspection, rates, removals etc.)

Completing the purchase
Before settlement, your conveyancer will undertake the necessary searches with respect to the property and your financier will prepare the mortgage documentation. Possession of the property usually takes place upon the date of transfer, which the seller and buyer can come to an agreement on.
 
Information supplied by Harcourts Stilbaai
 
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