THE DECISION-MAKING PROCESS WHEN BUYING YOUR FIRST HOME

WHEN purchasing a residential property, whether for your own use or as an investment, you need do a due-diligence exercise before signing a sales agreement, advises Roper & Associates. This includes:

1. A physical audit

Identify all the positive and negative features/characteristics of the property, including:

• Gourmet kitchen/dysfunctional kitchen.

• Sea views/poor outlook.

• Tasteful internal decor/pink and purple walls. You should then separate this list into three groups: Group A – Likes/advantageous features.

Group B – Dislikes, repairs and renovations, necessary extensions. All are possible with the necessary spend (you are in control).

Group C – Dislikes, disadvantages, annoyances, functional and economic obsolescence that no amount of money will improve/ repair/replace (you are not in control).

This group is the most important one and possibly the game-changer in that it is the main contributor in whether the value of your property appreciates or depreciates. The features include:

• Building orientation – northfacing is best.

• Stormwater control – avoid being below road level.

• Avoid abundant/high embankments; and retaining walls, especially on boundaries shared with unco-operative neighbours.

• Avoid noise and visual pollution, such as opposite a school or on busy/steep roads. 2. Legal audit Identify the limitation of your “real rights” on the property by researching/obtaining:

• Title deeds and the survey or general’s diagram that shows:

1. Servitudes (that is below ground pipelines and so on).

2. Road reserves.

3. Legislated restrictions – usage.

4, Conservation areas.

5. Water rights.

• Town planning controls – maximum allowable development of:

1. Building/ floor area.

2. Height.

3. Building lines.

4. Usage (see websites of municipalities, conservation of land – DMOSS, and conservation of buildings – AMAFA).

5. Local authority-approved architectural plans.

6. Encroachments (by the neighbours or affecting the neighbours).

7. Body Corporate/ Home Owners Association rules and regulations including: – That sectional title plans are up to date. – Security of tenure over exclusive use, parking bays, storage, gardens, and so on. – Copies of Body Corporate minutes of meetings.

3. Financial audit

• Municipal rates – arrears or overvalued (high rates).

• Body corporate levies – arrears or anticipated special levies (due to inadequate financial planning) – obtain body corporate financials.

• Body corporate financial status (savings fund) – competent management.

Roper & Associates says you need to make property purchasing decisions based on sound, logical research as opposed to emotional impulse.

DO YOUR research before signing that sales agreement. Here’s what to consider PICTURE: ANETE LUSINA/PEXELS