At times we encounter buyers reluctant to purchase their first home because of unsurety about the deposit requirements. Don’t give up on your home buying dreams just yet, we’ve found that preparation almost always leads to success in the property business.
Banks look favourably on a buyer who has a sizeable deposit. Due to stricter lending criteria, it is difficult to say how much exactly you need to have, but generally, it is in the region of 10% of the home’s value. But with that being said, this depends on many factors.
If you give yourself a year or two to save the money – your deposit shortfall, if any, will be dramatically less and far easier to make up. The key to saving for a deposit is analysing your budget and price bracket. Spend some time analysing your budget and what you potentially can afford. Ooba, South Africa’s leading bond originator, have a set of calculators that greatly assist with affordability and bond calculations. Find them here: https://www.ooba.co.za/calculators
Then research homes in your desired areas, and gain an understanding of what it is you want against what it is you can afford. With this data in mind, you’re able to gauge more accurately how much you need to save.
With all the necessary research and insights done, the saving process begins. Remember, save as much as you can possibly afford. If you have to bite the bullet for a year or two, so be it. Property is an incredible long-term investment with amazing ROI. Cut down on unnecessary expenditure, monitor spending closely and see where you can save. You’ll be surprised how the little things add up.
Finally, consult the experts. The moment you get assistance and clarity on all the costs associated with a home purchase the better. Buying a home is an incredible experience. Let your excitement fuel your desire to make it happen.