While renting a home has many advantages and is the right choice for many people, homeownership is an investment in your family’s future. Before you start looking through listings to find your dream home, there are several things you can do to make the process easier. REALGLEN Properties has the lowdown of what you should be doing now if you’re planning to buy your first home in the first half of 2026. By getting preapproved for a home loan, saving for a deposit, and researching neighbourhoods, you can ensure that you’re ready to start looking for your dream home in the new year.
Get preapproved for a home loan
Getting preapproved for a home loan means that a bond originator has assessed your financial situation and confirmed how much you’re likely to qualify to borrow when you apply for a home loan. Using a bond originator is the most efficient way to apply for home loan finance, because you’ll only need to fill in one set of paperwork and the bond originator will apply to all the banks on your behalf. In South Africa, you can use bond originators such as ooba or BetterBond.
The bond originator’s assessment looks at your income and expenses, credit score, employment stability and any other assets or liabilities that you have. Based on this information, they’ll give you an estimated maximum loan amount that you can afford and a preapproval certificate or letter.
This preapproval document does more than give you a clear indication of what price range to look in while you’re house hunting. From this, you’ll know if your credit score or affordability needs to be improved. Also, sellers and property practitioners will take you more seriously if you’re preapproved.
Save for a deposit
There are various reasons to save up a deposit before you put in an offer on your dream home, and here’s the most important one: Putting down a deposit will save you tens or hundreds of thousands over the duration of your home loan. This is because having a deposit is likely to get you a lower interest rate. Over and above that, the higher your deposit, the lower the amount you need to borrow.
There’s also a “mental preparedness” aspect to saving up for a deposit. Making monthly home loan payments, while also covering maintenance costs, levies (if applicable), municipal rates and utilities can take some getting used to. However, if you’ve gotten into good financial habits while saving towards your deposit, you’ll be used to making the type of solid decisions that make the cost of homeownership manageable.
Your savings will also need to cover the upfront costs of buying property. If the property you’re buying costs more than R1 100 000, you’ll need to pay transfer duty. Regardless of the cost of your home, there will be attorney fees and bond registration fees to be paid. You’ll also need to have funds saved for moving costs and municipal deposits if applicable.
Research neighbourhoods and property prices
As the old saying goes, knowledge is power and the more you know about neighbourhoods and property prices in the area you’re interested in buying in, the better. If you’re planning a local move, visit the area you’re interested in on various days and at different times to get a comprehensive picture of travel patterns, noise and activity.
If you’re buying a home far from where you currently live, you’ll need to do your research online. Look at social media pages and websites and ask questions if possible.
Regardless of whether you’re buying near or far, it’s important to keep an eye on average sale prices in the area to get a realistic impression of what you will be able to afford.
Perhaps the most important step in getting ready to buy property is establishing a relationship with a property practitioner you trust. If you’re interested in buying a home in Kempton Park, Boksburg or Benoni, get in touch with REALGLEN Properties.
