Our clients often ask ” When is the best time to buy your first home?”
Although most first-time home buyers start in their early 30’s there are a number of long-term financial benefits for those who buy earlier.
• Despite our economic climate, South Africa is still in a position of a buyers’ market for residential properties.
• This “forced savings” will help you build your wealth through property appreciation and can provide you with a rental income instead of paying off your landlord’s bond.
• Investing early gives you access to a valuable asset that you may wish to borrow against at a later stage.
• Many low-income first-time buyers qualify for FLISP subsidies and can also save with the benefits of a transfer duty exemption threshold of R1.1 million
• The sooner you can pay off your home loan the sooner you can buy a 2nd property.
• The younger you are the fewer responsibilities you have which makes it easier to commit to a long-term investment, and it is easier to maintain once you have started.
However, the fact remains, if you are young or old the best time to buy a property is when you can comfortably afford the home loan payments.
If you are nervous about taking out your first home loan then ensure that you speak to an experienced professional who can guide you by assessing your needs, can establish how much you qualify for, and can secure you the best home loan in the market.
PS Don’t forget to inbox us your burning home loan questions.