EVERYTHING you need to consider before buying a house

We're experiencing the highest interest rates in years and jobs are at a premium, so it makes sense that more people are opting to rent a property rather than buy one.

But if you've made the decision that you're ready and able to buy your own home, there are extremely important factors to consider before you take the leap.

RELATED: South Africans prefer renting over buying property – survey

Firstly, many property purchasers find that at some point, 'the budget runs out of house' says personal finance expert Warren Ingram.

Do NOT make the classic mistake of falling in love with a house and then trying to make your budget fit it.

You need to be very clear about what you can afford, Ingram emphasizes.

"Don't rush to open up a property website and phone your nearest friendly estate agent. The first thing you do, is a budget - understand exactly what it is that you can afford without putting yourself and potentially your family into deep financial difficulty."

"Start with understanding what it is you can pay on a monthly basis... Let the budget dictate the house and not the other way around, because there is always going to be a slightly bigger, slightly more beautiful, more impressive home."

Warren Ingram, Executive Director - Galileo Capital

People also tend to forget about all the costs involved in buying a house, and then the actual ongoing costs of ownership.

Ingram shares his pointers on making sure you go into a property purchase with a clear head.

POINTERS WHEN BUYING A HOUSE

Budget and Affordability: Before starting your house hunt, determine how much you can afford to spend. Consider factors such as income, existing debts, savings for a down payment, and ongoing expenses like property taxes, insurance, and maintenance costs. Setting a budget that allows you to comfortably afford your mortgage payments without stretching your finances too thin is crucial. 

Saving for a Deposit: Save as much as possible to build up a deposit. The bigger your deposit, the lower the amount you’ll need to borrow or finance; therefore, you’ll save on interest. Have a house emergency fund because there will be unforeseen moving expenses and maintenance that you did not anticipate.

Location and Neighbourhood: A house's location plays a significant role in its value and your quality of life. Consider factors such as proximity to work, schools, amenities, the safety of the neighbourhood, future development and transport plans, and resale potential.  

Property Type and Size: Decide on the type of property that suits your needs, whether it's a single-family home, townhouse, or fixer-upper. Consider the size of the property in relation to your current and future needs such as family size, lifestyle preferences, and potential for resale value.

Long-Term Financial Goals: Consider how buying a house fits into your long-term goals, such as retirement savings, investments, and other financial obligations. Evaluate the impact of home ownership on your overall financial plan and ensure it aligns with your objectives for wealth building and financial stability. Remember that renting might be a better option if you plan to move within an 8-year period. If you plan to stay in the home for 10 years or longer, buying could be better.

Scroll up to the audio player to listen to Ingram's detailed advice