Insights and updates from k living & property

1. Understand Your Budget and Affordability

Before you start viewing homes, it’s important to know what you can realistically afford. Consider:

• Your income and expenses

• Existing debt (loans, credit cards)

• Deposit amount (at least 10% of property value is typical)

• Additional costs like transfer fees, bond registration, and moving expenses

Tip: Use online bond calculators to estimate monthly repayments and ensure they fit your budget comfortably.

2. Get Pre-Approved for a Home Loan

A bond pre-approval (loan approval in principle) shows sellers and agents that you’re serious and financially ready. To get pre-approved, you’ll need:

• South African ID

• Proof of income (payslips or tax returns)

• Bank statements

• Details of current debts

Tip: Approach multiple banks or a mortgage originator to compare rates and bond conditions.

3. Start Your Property Search

Once pre-approved, you can start searching for properties. Consider:

• Location and proximity to work, schools, and amenities

• Type of property (house, townhouse, apartment)

• Safety and neighbourhood

• Future growth potential

Use platforms like Property24, private agencies, or a trusted real estate agent to find suitable listings.

4. Viewing and Inspecting Properties

Always schedule a viewing to inspect the property personally. Check:

• Structural condition (walls, roof, flooring)

• Plumbing and electrical systems

• Security features

• Overall maintenance and cleanliness

Tip: Bring a checklist to avoid missing any details.

5. Make an Offer to Purchase (OTP)

When you find your ideal home, submit an Offer to Purchase (OTP). This legal document outlines:

• Your offer price

• Conditions (e.g., subject to bond approval, inspection, or sale of your current property)

• Deposit amount

Once signed by both parties, the OTP becomes legally binding.

6. Bond Approval & Financial Checks

After the OTP is accepted, your bank will conduct a formal bond assessment. This includes:

• Verifying your financial status

• Confirming affordability

• Property valuation

Tip: Respond quickly to bank requests to avoid delays.

7. Conveyancing and Transfer

A conveyancer (attorney) handles the legal transfer of the property from the seller to you. Their tasks include:

• Checking property documents

• Lodging the transfer documents with the Deeds Office

• Calculating transfer fees and rates

Once the transfer is registered, the property officially belongs to you.

8. Final Steps Before Moving In

• Arrange home insurance (bond requirement)

• Set up municipal accounts (water, electricity, rates)

• Schedule moving and renovations if needed

Congratulations—you are now a homeowner!

Tips for First-Time Buyers

• Always budget for hidden costs like maintenance and levies

• Work with a trusted real estate agent for guidance

• Take your time—don’t rush into a purchase

• Research the neighbourhood and future developments

Buying your first home in South Africa is a journey, but with the right preparation and guidance, it can be a smooth and rewarding experience. From budgeting and bond approval to conveyancing and moving in, understanding each step helps you make confident property decisions.