Financial planning is key to a stress-free home purchase

READ: First-time homebuying: Common mistakes and how to avoid them

Many buyers focus solely on the purchase price and bond repayments but forget about additional costs such as transfer duties, legal fees, maintenance, and insurance. “It’s crucial to budget for these expenses upfront to avoid financial strain down the line,” says Goosen. A poor credit score can affect your ability to secure a home loan or result in higher interest rates. He advises homebuyers to check their credit scores early and address any red flags before applying for financing. “Getting pre-approved for a home loan gives buyers a realistic understanding of what they can afford and strengthens their position when making an offer,” he explains.

It’s tempting to buy at the very top of your budget, but this can lead to financial hardship if interest rates increase or unexpected expenses arise. “A good rule of thumb is to ensure your monthly bond repayments, along with other debt obligations, do not exceed 30% of your gross monthly income,” he suggests. Buyers eager to secure a home sometimes overlook hidden defects, which can lead to costly repairs later. “Never skip a thorough inspection of the property, including plumbing, electrical, and structural checks. If necessary, hire a professional to assess the home before committing,” advises Goosen.

Understanding local property trends and future development plans in a neighbourhood is crucial for making a sound investment. “Buyers should research the area’s property values, security, infrastructure plans, and resale potential,” Goosen says. With the right financial planning and market awareness, homebuyers can avoid common pitfalls and make a confident, informed decision. “A home should be a source of financial security, not stress,” he concludes. “By doing the necessary homework upfront, buyers can set themselves up for long-term success.”

READ: Buying a home: Key tips to avoid common issues

Purchasing a home is one of the most significant financial decisions one can make, yet many buyers enter the market unprepared. Financial missteps can lead to unnecessary stress, complications, and even lost opportunities. According to Ryan Greeff, CEO of Quay 1 International Realty, “One of the biggest mistakes homebuyers make is underestimating the additional costs that come with homeownership. Transfer duties, legal fees, and ongoing maintenance can quickly add up and put strain on finances.”

Pre-qualification before starting the home search is also important. Many buyers start looking at properties before understanding what they can realistically afford. Getting pre-qualified, with a reputable home loan provider, not only gives you clarity on your budget but also puts you in a stronger position when negotiating with sellers.

Quay1 warns against overleveraging: “With fluctuating interest rates, affordability today doesn’t necessarily mean affordability in the future. Buyers should consider a buffer for potential rate increases and ensure they can sustain their repayments long term.”

To avoid common pitfalls, experts recommend:

1. Understanding Total Costs – Factor in all expenses, including rates, levies, insurance, and maintenance.
2. Getting Pre-Qualified – Know your financial standing before committing to a property.
3. Planning for Interest Rate Fluctuations – Consider affordability over the long term.
4. Checking Your Credit Score – A good credit score can impact your ability to secure a favourable mortgage rate.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE)