When is actually the right time to buy a home?

Published on 28th June, 2023 at 04:22 pm

Buying a home is an exciting and life-changing event. But it’s also a huge commitment that shouldn’t be taken take lightly. You’ll need to consider several factors before signing on the dotted line – from property values to affordability, and more.

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In this article you’ll learn:

• When is the house-buying season and what is it?
• Important financial questions you should be asking yourself.
• How the building value calculator can help you insure your property correctly.

When (and what) is ‘house-buying season’?

House-buying season runs from spring through summer and is typically when people put their houses on the market. It’s a time when people’s spirits are up, and the sun is out, making their homes look more appealing.

“This period is also known as a ‘buyers’ market’,” says Chahid Haigh of RE/MAX Living. “It’s determined by the buyer’s position of strength in the property market – basically the seller’s need to sell is more than the buyer’s need to purchase. This creates a situation where buyers are spoilt for choice and use this opportunity to make low offers.”

Haigh’s thoughts on the best time to buy a home? Now. He explains: “Taking the ‘wait and see’ stance is not always the best position to adopt. It’s proven that time is key when it comes to growth in the investment of property. If you have a hankering for property ownership, buy now for as much as your finances will allow.”

2 Financial questions to ask yourself before house-hunting

How much money do I have available for a deposit?
Factoring in a deposit is important, as it can reduce the amount of cash you’ll need to buy the house. In addition, the larger the deposit, the smaller your loan will be, which means you’ll pay less interest over the life of the loan.

A financial planner can help you create a savings plan to help you save for a deposit.

How will this purchase decision affect my overall financial goals? 
Quite significantly. If you have long-term financial goals, such as saving for retirement, buying a house means a large portion of your income or savings will go towards your bond payments and the property upkeep. This can put a strain on reaching your long-term financial goals. On the other hand, buying a house can provide long-term stability if handled properly.

This handy loan repayment calculator will help you calculate what your monthly repayments might be depending on the amount of the home loan.

Advice is good

It’s worth looking into the services of a financial planner when you start the property-buying process. Their expert knowledge and understanding will help guide you in making informed decisions. “The first three things to consider when buying property are: what are my monthly instalments, what is the current interest rate, and can I afford an interest rate hike?” says Wayne Hutchinson, managing director and business principal of Berghshire Wealth BlueStar, authorised by Sanlam.

Don’t forget about these six hidden costs when buying a house.

During COVID-19, prime interest rates dropped significantly, resulting in people being able to buy more property more easily. But, when the interest rates rose again, it caused stress for those who didn’t budget for interest rate hikes, and many were forced to sell. “It’s advisable to get professional advice for various reasons like timing, reviewing your finances, interest rates and the type of bond that would be best for you,” says Hutchinson.

So, if you’re feeling like you’re ready to become a property owner, the key is to be informed. With the right information and advice – any time is the right time to buy a home!

When buying property, you must protect your home against unexpected events. Ensure your home matches its replacement value by using this building value calculator.