SA Budget 2012 - Yes – You CAN Get That Elusive Home Loan In 2012

Yes – You CAN Get That Elusive Home Loan In 2012

It seems as if the light is shining at the end of the proverbial tunnel for those that need to buy homes and need bonds in order to do so. According to Standard Bank, the largest player in the home loans field, it is still possible to get that loan that you need.

Pravin Gordhan will soon put us in the picture with his much-awaited 2012 budget speech, and this, too will have an all-important impact on the lending and housing market in SA in 2012.

Here are a couple of practical points to take into consideration prior to approaching your bank for that all-important loan:

·         Do a little research on the area.

·         Find out exactly what kind of condition the house is in.

·         Do some research into your credit history; this is easily available online and you can make any necessary adjustments if errors appear on your credit report. Compare these reports from the three largest credit bureaus in SA.

·         Armed with this kind of knowledge you will always have the upper hand.

·         Did you know that there are a high percentage of errors that occur on credit reports? These should always be checked on a regular basis so that your credit report is in a healthy state.

·         Ask a professional estate agent to assist in getting a comparable price list of the homes in the area; they have access to graphs and information that is pertinent to this.

·         Obviously, you will have to be able to afford the property; affordability is the key in this exercise.

·         If you are concerned that the budget will affect your already tight purse strings, it might be best to wait for after Pravin Gordhan has delivered his SA budget speech, and only then approach your bank for a loan.

·         You might feel that the budget does not really affect you in your everyday life; but if it is more taxes we have to pay, higher interest rates on our borrowed money, more to fork out on that glass of wine or packet of cigarettes, then it is wisest to hold on a little longer before signing for that much-desired property you already have your eye on.

·         Put money aside when buying your home; there are always costs that are hidden.

·         100% bonds are not common, so ensure that there is sufficient for transfer duties, deposits and anything else pertaining to buying your property.

·         Remember to add in attorneys’ fees and registration costs, too.

·         Hidden expenses need to be addressed, as you will always find there is a lot to be spent on added extras such as electricity deposits and beefing up security.

·         Don’t forget to build in your home insurance, too.

If you feel you might be a little too tight it is a good idea to wait and see what the 2012 budget speech will do for (or against) our borrowed monies from banking institutions; it is always bet to make these important decisions through careful planning.

Purchase Your Biggest Investment Ever With A List After Hearing The 2012 Budget

Thirteen Pertinent Points for your “To Do”List When Buying Property after the 2012 SA Budget Speech

·         First things first; create a needs analysis. Do you want a lock up and go scenario, or do you have a dog and cat or a family to consider? Write this at the top of your “to do” list when investing in property in 2012.

·         Location, location, location is all-important. This will affect how much you will be able to borrow from the bank, and this will also affect how much you will pay on your monthly insurance premium. Buy the cheapest house in the best area, and you will never go wrong.

·         Once you have heard what you are in store for in 2012 after hearing the 2012 budget speech, you might want to decide how to invest your money accordingly.

·         Perhaps you would like to go ahead anyway; although it is important to know how our money is going to be spent according to Pravin Gordhan,  it is also important to get into the housing market, and now seems to be as good a time as any, whether the budget bodes well or not.

·         When you go house-hunting keep your “to do” property shopping list with you at all times so that you do not lose focus.

·         When looking at location, it is also important to take into consideration where you work, and where you spend most of your social time.

·         Fine-tune your list all the time; your ideas might change, and especially so after hearing what the SA budget has in store for us.

·         If you are a first time home buyer then it might be a good idea to take someone older and wiser with you when looking for property, as wisdom comes with age and two heads are always better than one.

·         Be on the lookout for any pitfalls; as a first time buyer you might not be aware of these.

·         Shop around at different banking institutions and find out what the interests rates are. Even better wait for the SA budget and then make this decision based on those facts.

·         The professionals will be able to assist and guide you in the right direction; bond originators are experienced and would be in a position to shop around on your behalf, taking the leg-work out of this exercise.

·         Acquaintances and friends who have bought homes recently will have a good idea how to buy a home; why not ask their advice?

·         Always look for estate agents who have got the most ”sold” boards  in the area you are interested in; THESE are the ones who know the area best, which houses will be for sale. These agents will be the most professional and successful in the area.

Your best financial indicator for borrowing money to buy a home would be the 2012 budget speech, as this will be a good barometer on how our money is going to be spent in the next twelve month period. Hopefully Pravin Gordhan will make many positive changes in SA, so that everyone can benefit.