GET YOUR DUCKS IN A ROW

BEFORE you even consider purchasing a home here are steps to be followed, says Karmen Wessels of digital life insurer Sanlam Indie:

• Visit property portals to get an idea of what you can afford in your chosen area. Set alerts.

• Start saving. Consider downgrading your car and cutting out a few luxuries. Use savings and investment accounts that will earn you higher returns and, ultimately, more money in the long run.

“Your two biggest upfront expenses will be the deposit, and associated fees (transfer fees, bond registration fees, lawyer fees, etc),” says Wessels.

“A good credit score is also a key factor in not only qualifying for a bond, but one with a favourable interest rate.”

Further down the line, life insurance is also a monthly cost to consider, says Wessels.

• Don’t disregard “free” money that comes to you via tax returns, inheritance, a gift or other out-of-the ordinary circumstances.

“Let this windfall serve you better in a savings account. And if you get a salary increase don’t use it to upgrade your lifestyle, save or invest the difference instead.”

• Buy a property jointly to get a bigger bond and pay it off faster or more easily. If you do purchase a property with a partner or friend, though, be sure to set up a contract to protect both of you.

Experts suggests you start saving long before you want to buy a home. PICTURE: SUPPLIED