Breaking through 'buyer's block'
Category RealADVICE
Finding the dream home that matches your budget is always a challenge, and most homebuyers realise that they need to put lots of time and effort into the search since this will be one of the most important purchases they will ever make.
But no search should last so long that it leads to "buyer's block", says Gerard Kotze, CEO of the RealNet property group. "This term refers to the condition suffered by buyers - especially first-time buyers - who are so overawed by the prospect of a 20-year commitment to paying off their purchase that inertia sets in and they simply cannot choose which home to buy.
"And their state of indecision is generally not helped by any amount of well-meant advice from friends, relatives or colleagues, or interest rate changes that might make their monthly bond repayments higher or lower."
The best remedy for those who find themselves stuck in such a dilemma, he says, is to go back to basics, starting with a really good look at their budget again, and a firm decision about how much they are willing to pay, while also leaving themselves some leeway for future interest rate increases.
"If they have not done so already, they should really obtain home loan pre-qualification through a bond originator like BetterBond, so that they have confirmation of their buying power and won't waste time looking at homes they can't afford."
It also helps, he says, to think carefully about what your "dream" home actually looks like, and whether this matches your current lifestyle or is part of a plan for a future that looks very different. "You need to imagine how you plan to live once you do commit to a specific property. If you are a young working couple, for example, your idea of the perfect home may be a modern, low-maintenance townhouse in a security complex. But if you have a young family, you may be more interested in a suburban home that needs some work but is well-priced, has lots of space and a garden.
"Next, you need to make a list of home features you consider absolutely essential, such as the number of bedrooms and bathrooms, a modern kitchen, a garage and good security, and then narrow your search down to a few areas where you would really like to live. And finally, give yourself a set time in which to find the right home."
Once you've completed this exercise, says Kotzé, you should review any homes you have already seen to check if they match up your price, feature and area criteria, and forget about those that don't.
"But don't worry if none of those previously viewed fit into your new framework. Just start a new search with the help of the most reputable and experienced property professionals in those areas that interest you, and view only homes that are within your price range and conform to your essential requirements.
"Be flexible enough to consider adjacent areas that offer better value, but don't get distracted by properties that are only partial matches. Stick to your original cut-off date for viewing suitable listings and then pick the home that you think offers the best value for your money and make an offer."
He says those new to the market should bear in mind that any home they can afford that is in a good area and good condition will be a good investment over time. "Your primary aim, frankly, should be to buy your own property and start building wealth as soon as possible, not to keep searching for a 'bargain' while you carry on paying rent.
Author: RealNet
