DestiNation 5

Start by taking a look at your finances - it's easier to shop around once you know what you can afford. Decide if you want to rent or buy. Renting is more affordable in the short term, buying more cost effective in the long run. However, buying is an investment – so perhaps consider renting with a friend while you save for a larger deposit.

What are your long term plans and career prospects? Buying a property is a serious commitment and will have an impact on your practical financial flexibility – there are a lot of expenses involved and you'll have to keep the place for a while before you can recover them or sell for a profit.

If you're interested in buying, calculate what you can afford. Keep in mind all your current and future monthly expenses, and then consider what expenses a new property will have. Don't just look at today's interest rate – leave room for fluctuations in the future. Here's a calculator you might find useful.

If you're going to need financing for your purchase, find out how banks decide on the value of the bond you qualify for, what sort of deposit they require and the differences between fixed and variable interest rates. Speak to a few banks and see who can give you the best options - now's not the time to rush your decisions.

Know where to look - check out the properties section in your newspapers and search online at:
www.privateproperty.co.za
www.pamgolding.co.za
www.seeff.co.za
www.propertygenie.co.za
www.remax.co.za

Once something has caught your eye, visit it a few times and at different times of the day. Take someone who can give you an objective opinion. Know which direction the wind comes from, what the traffic's like at peak times and the condition of the neighbours' houses and gardens.

If the property is in a complex, make sure you know what the levies are, and what they include.

Don't rush into anything. Take the time to see as many places as you can – it'll all help you make a more informed decision.

Don't be influenced by the furniture inside the show house. Find out exactly what will stay and go, then work out what your own furnishing is going to cost. Invest in the basics before you splash out on the leather lounge suite and plasma screen.

Know the pros and cons of old and new properties. Older buildings tend to need more love, while newer buildings are typically less spacious but might not charge transfer duties if you buy from the developer.

Location is everything, so make sure you know enough about the area. How long will the commute to and from work take you? How much activity is there in that specific property market?

Make sure your credit history is spotless before applying for a home loan.

Know what the estate agent's commission structure is. Ask them to explain all the costs involved in buying the property, or do it on your own with this handy tool.

Do not be bullied by estate agents. Speak to other agents if you're unhappy with the service your agent is giving you.

Ask your estate agent about RPPR (Residential Property Price Ranger). Subscribe to RPPR to get accurate and up-to-date listing prices as well as the actual prices houses in your area are being sold for.

Always negotiate the asking price. If you know someone who has experience in buying or selling property, ask them to join you in the discussions.

Get a qualified property inspector to thoroughly scrutinise the property before you buy it – it can make a big difference and help you avoid any nasty surprises.

When you're satisfied, you can make an offer to purchase. Once you've signed the offer, it's a legal agreement. You're bound to its conditions if the offer is accepted, so make sure you've read the offer and understand it fully.

There's a lot of detail involved in a property purchase, so take your time and ask all the questions you need to if there's anything you don't fully understand.

Don't forget house insurance after the sale. There's a difference between home insurance and insuring the contents of your home. Try these sites to get a fix on what insurance will cost you:
http://www.santam.co.za
http://www.miway.co.za/home-insurance