There is no benefit in looking at property that you cannot afford.
A good estate agent will interview you to find out not only what you want to buy but why.
They may even suggest to you that what you want to buy is not a good or the right property for you.
A good estate agent will buy the right property for you rather than get you to sign for anything just to get a sale.
Good agents will have you pre-approved with one of the major bond originating companies such as Betterbond.
This company will ask you for a breakdown of what you earn from which it will be able to tell you the amount the banks are likely to offer you for a loan.
Your agent should then be able to give you all the figures for deposit, transfer and bond costs from which they can calculate the value of the home that you can afford to buy.
This gives you the confidence that when you find your dream home, you will know when or not you can afford it.
The only reason that the bank would not give you a bond is if they feel that the price that you are paying is over the odds.
If you want to be pre-qualified, just email: mike@platinumglobal.co.za and put the following in your email:
- Your full name
- Email address
- Telephone number
Betterbond will help you find out how much bond you are likely to get.
Remember that you will have to pay transfer and bond costs on the home you buy.
You can add any cash deposit that you have saved to the bond allowed to find out the total price of the property you can buy.
- Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant with work across the country as well as Eastern Europe and Australia.