Become a first time buyer - Chapter 3

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Your perfect home wish list

Now that you are financially ready to buy a home and want to start the property search, you should first assess your property needs by making a wish list. Ask yourself: What type of home am I looking to buy? Which area do I want to live in and why?

How to choose the best area to live in

When you buy a home you are also buying into the neighbourhood.

When you buy a home you are also buying into the neighbourhood. Make sure it suits your lifestyle...

That's why it's important to identify the wants and needs you have of your home and the location before making the commitment to home ownership.

From crime rates to area amenities, there are many things that need to be considered. So begin by determining what's most important to you as a home owner in the long term. Drawing up a list can be a good place to start and you can include the following factors as a starting point:

- Do you prefer a quiet suburb or a bustling central business district?
- Do you have the need for public transport?
- Do you commute to work?  And if so, what distance are you prepared to travel every day?
- Do you need to be close to schools?
- Are you looking for an area with certain schools or places of worship?
- What amenities would you like to have close by (gyms, shopping malls, etc)?
- Is the area within preferred proximity to family members?
- What is the ideal view you are looking for (beach, ocean, mountain, etc)?

Choose the best area to live in

When deciding about a property purchase as a long term investment, the selection of your location plays an important role.

For future re-sale purposes it's always better to buy a reasonable home in a good area than a cheaper home in a bad area. Therefore any prospective home buyer should take a careful look around before deciding to live in any area.

Important concerns for an area are the crime rate and the overall impression by local residents.

Indicators of a good area are:

- Visible family areas
- Visible crime control actions, such as: patrolling security companies and neighbourhood watch
- Noise control
- Well maintained homes and buildings

What type of home are you looking for?

Once you have a list of preferred neighbourhoods for your search, it's time to decide the type of homes that you wish to view.

So, you have narrowed down the list of potential areas. Now decide what kind of home you are looking to buy.

There are thousands of homes on the market, so narrowing down your choices will help you simplify the search.

First, look at the features of a home you want and then the type of home you want.

Features are aspects of a home you can't live without, such as the bedroom count, security, off street parking and outdoor areas.

Consider your needs now and your needs in 7 to 10 years time. If your requirements might change in that time span, you should make sure your home will still be able to accommodate your needs.

Different types of homes to consider

Homes come in all shapes and sizes. Here is an overview of what you can expect to find in the market...

There are various types of homes to consider buying...

Freehold: The owner of a freehold property has full ownership of the property and full responsibility for it. This means that the owner can rent, sell, paint and alter as they see fit (within certain constraints by the municipality). Types of properties that fall under freehold are free standing homes and homes in security villages.

Sectional title: When you buy property in a sectional title complex you are buying a unit or section of a common property. This common property is shared by other unit owners. Types of properties that fall under sectional title are flats, units in complexes and cluster homes. Changes to your property in a sectional title scheme have to fit within the guidelines and standards set up by the body corporate.

99 year lease: A person who enters into a 99 year lease is not purchasing the property but securing the property for a long period of time. Usually the government owns this type of land, and this land is usually found in historic or protected areas.

Shared block: A shared block property is owned and registered by a company and applies mainly to apartments or small blocks of flats. Buyers of shared block property, purchase shares in the company as a form of property ownership.

What type of home do you really need?

Now that your wish list has been drawn up, differentiate between your wants and your needs.

Narrow down your dream home wish list to decide which homes to look at.

Separate out items that fall into the wants category, which are the "nice to haves" but not essentials; from those that fall into the needs category, which are specifications that you cannot compromise on.

Now that you have your list of needs and wants and know how much you can afford to spend, it's time to look at some properties. 

Article and content sourced from Property24.com

Author: Property24