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Renting or buying your first property

Renting or buying your first property

Author: Pranil Maharaj
Date: 2019-03-01

Ready for your first rental or property purchase It is indeed a very exciting time when you can finally move into your own flat or home, whether renting or taking the big step of buying.

Renting your first property: The first thing to know about renting your first property, is that you would need to be able to afford the rental as it comes with a fixed-term rental contract with financial implications in the event on non-payment. You will need a clear credit record and three months banks statements which shows enough money being paid into your account to cover the monthly rental.

The next step is to ensure that you have enough funds to cover the rental deposit which could be up to two times the monthly rental plus any additional administrative costs.

Thereafter you would be required to sign a lease agreement for the period of the rental. This document sets out all the rights and obligations of both parties. Before taking occupation, you should ensure that a thorough incoming inspection is done together with the rental agent or landlord.

Buying your first property: Again, the first starting point will be affordability, and this will be a factor of your income. You would need to earn enough to cover the monthly bond amount by a factor of at least three times.

The next important aspect is to have enough cash available should you need to pay a deposit towards the purchase price. Additionally, there will be transaction costs payable if the property price is above R900000, as well as attorneys' and bond registration fees.

Whether you are looking to rent or buy, it is advisable that you do your homework on the area beforehand. Buying a property is a big decision with significant financial consequences, so be sure to do it right.