Stepping onto the property ladder can feel a bit like standing at the edge of a diving board. Exciting, slightly intimidating, and full of ‘what ifs’. For many first-time buyers, uncertainty is often fuelled by long-standing myths about deposits, timing, and affordability.

Buying property is a major financial decision, but it is also one of the most rewarding ways to build long-term security and wealth, says Samuel Seeff, chairperson of the Seeff Property Group. With careful planning and informed choices, investing in your own home can offer stability and protection from rising rents, making it a goal worth pursuing early in your working life.

Dispelling some of the myths that first-time buyers may face

Myth #1 – Only buy when you can afford your forever home. Prices don’t stand still and it will likely cost you more if you wait. Rather, start small and extend or buy-up later. You may be then also have equity that you can put towards a bigger home.

Myth #2 – You will need a large deposit. According to ooba Mortgage Home Loans, deposit requirements are now around 12%. While a deposit is always recommended, first time buyers can secure 100% bonds, sometimes with costs.

Myth #3 – Wait for the interest rate or prices to come down. Prices seldom come down, especially in the low- to mid-priced areas while interest rate cuts are never guaranteed or are too unpredictable.

Myth #4 – When house price growth is flat, it’s better to rent than buy. While some may argue that it is better to rent and save the rest, the reality is that saving seldom happens. It is always better to invest in your own home rather than a landlord’s asset.

Myth #5 – Find the right house first, then apply for a home loan. It is better to get pre-qualification done first to know exactly what you qualify for, and then you can shop with confidence. It also puts you in a stronger position to get your offer approved.

Myth #6 – Certain times of the year are better to buy a house. There is no right time to buy, other than what is right for you. Unlike the hospitality sector, house prices do not vary according to the time of year, so any time is the right time to buy if you can afford it and have a steady job or income with financial security.

Myth #7 – You cannot get a home loan if you are self-employed. Yes, you can, but you will need to meet the qualifying criteria to prove your income and financial stability. A mortgage originator will be able to assist with information on the requirements.

Myth #8: Stay away from a house which sits on the market for a long time. While it could be overpriced, some properties take longer to sell and might have a unique, rather than broad appeal. It might just be right for you, but ensure you pay a fair price.

Myth #9 – You have to pay the seller’s asking price. Sales are often concluded after some negotiation and trade-off to arrive at an accepted price. It depends on the property and seller, but if it represents good value, you’re unlikely to get a discount.

Myth #10 – A fixer-upper is bad news. While it could cost more than just a coat of paint, it might also offer potential such as a lower price in a good neighbourhood. Or perhaps you are a keen renovator, but always ensure you consider the costs carefully.

Seeff says the property agent should be able to provide guidance on what the seller will consider, but unless you make an offer, you will not be able to secure the property.

Issued by Gina Meintjes

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