Money Advice

3 things to look for when investing or buying a home in 2023

Published by
Lethabo Ntsoane

Purchasing and investing in real estate provides a great sense of ownership. When you buy property for yourself, you eliminate many expenses while inheriting others. The costs associated with purchasing a home can be considered secondary concerns since there are more important issues to be concerned about.

Getting ready to buy a worthy property is worthwhile because buying a property can be one of the largest, if not the largest, purchases that one makes. The future value of your property will be heavily influenced by the decisions you make when deciding on which property to purchase.

There is a property option for everyone in South Africa, where the property market is booming like never before. Property can be purchased in any province and in any location. There is always something for sale, from apartments to oceanfront villas.

Before you go property shopping, here are three of the most important factors to consider when purchasing a property. This can be property for self-habitation, AirBnB, or any other type of investment.

1. Condition of the property

If you buy from a developer, you will most likely only be shown pictures of what a building or house will look like when it is finished. However, this is only a small percentage of home sellers in South Africa; the vast majority of property being sold has buildings that are already constructed.

Buildings and houses for sale are not always perfect, thus an inspection is still required. After all, the price of the property is important, which is why it is permissible to purchase an older structure. When purchasing a home, whether old or new, there are some things to keep in mind.

Regardless of the size of the property being purchased, some things to look for include:

Roofing

 A house’s roof reveals a lot about its structure. A house’s roof can be very expensive, and the material used to construct it should be investigated. Thatched roofs and other types of tiling can be quite costly. One way to begin estimating the value of the real estate is to consider the value of the roof.

The age of the roof is also important because depreciation must be considered. If the roof has been replaced, you will be able to determine the cost of the new roof as a buyer. If the current roof needs to be replaced, you can estimate the cost of replacing the old roof as a buyer.

Foundation

The foundation is the most important part of the house; a good foundation can support a house for a long time, whereas a bad foundation cannot. Examining the foundation for cracks and material deterioration can reveal a lot about a building.

It is also necessary to check for any trees that may cause damage to the foundation. It is always a good idea to have a home inspector inspect a house’s foundation.

Systems checks

With the increase in load-shedding hours in the country, it is critical to inspect the electrical system before purchasing a home. One should hire professionals to inspect geysers, water pumps, pool pumps, and other appliances.

The age of the existing electrical system must also be determined. If a solar system is available, the battery power and usage should be investigated and verified.

Home Contents

Is the place you’re looking to buy equipped with a refrigerator, oven, stove, microwave, washing machine, dryer, and/or dishwasher? These appliances must also be inspected for quality.

The value of the property can be estimated in part by inspecting the home and the contents that come with it.

2. Location

It should come as no surprise that location is at the top of our list of things to look for when buying a home. The location of a house has a significant impact on its pricing. A house in the suburbs will cost more than a house in the townships, even if the house is the same size and sits on the same lot size.

Why is location so important when purchasing real estate? The convenience of facilities is the most important aspect of the location. As a result, properties with access to facilities and a better view of the best landmarks are more expensive.

Here are some things to consider when purchasing real estate:

  • Schools are among the most important features to consider when purchasing a home. Purchasing a property near some of the best schools in the area is advantageous. Schools must also be close by, preferably within walking distance.
  • Security – how safe is the area where you are purchasing property? This is an important question to ask because it can harm your finances in more ways than one. The resale value of the property may be impacted, and insurance premiums may be excessive for a property in a high-crime zone.
  • Access to amenities such as gyms, restaurants, entertainment facilities, casinos, lagoons, beaches, and so on are some of the factors that influence real estate prices.

3. Perfect home features

The features of a home are really dependent on the person buying a home; some people prefer modern homes, while others prefer classic designs. If you are buying for investment purposes, the decision may be more difficult. However, research can be done to come up with ways to invest in a property that meets the quality of property that your tenants may require.

Consider the following features when looking for the ideal features for your property purchase:

  • Space of the property,
  • House plan,
  • Size of the house,
  • Decoration,
  • Storage space, and
  • Parking space

Conclusion

Purchasing real estate can be a time-consuming and labor-intensive process. Making the process enjoyable can help, especially if you enjoy the idea of owning property. With the right tools and inspectors, you can find the ideal property for any purpose that will easily maintain or increase in value.

Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted at lethabo@rateweb.co.za

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Published by
Lethabo Ntsoane
Tags: real estate

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