Buying a home is one of the biggest financial decisions most people will make, yet many fall into common financial traps that can have long-term consequences. According to Antonie Goosen, principal and founder of Meridian Realty, careful financial preparation is key to a successful and stress-free home purchase.
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. Goosen 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,” Goosen 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,” Goosen concludes. “By doing the necessary homework upfront, buyers can set themselves up for long-term success.”
